CTI Movil Upgrades Wireless Network in Paraguay with Nortel Solutions

Technology to Help Increase Network Coverage and Support Delivery of Advanced Services.

FEBRUARY 09, 2006, ASUNCION, Paraguay - AMX Paraguay, S.A., a subsidiary of, America Móvil [BMV:AMX; NYSE:AMX; NASDAQ:AMOV] has upgraded its network in Paraguay with Nortel* [NYSE/TSX: NT] wireless solutions.

Nortel’s GSM, GPRS, and EDGE technologies are allowing CTI Móvil to expand its coverage area in Paraguay while offering its subscribers new enhanced services such as wireless web browsing, email and downloading ring tones and games.

The network upgrade also provides a foundation for CTI Móvil to evolve its network to 3G capabilities through UMTS. In addition to GSM access equipment, Nortel is also providing CTI with services from the Nortel Global Services portfolio, including project management, network engineering, radio frequency design, installation and commissioning.

“We are making continuous investments necessary to enhance our networks in Paraguay as part of our strategy to offer our customers the best coverage and most advanced services” said Fernando Gonzalez, general director, CTI Móvil Paraguay. “CTI Móvil and Nortel have been together in the country since August of last year, working on the deployment of the biggest cellular network in the Paraguay.”

“Nortel works with customers throughout Latin America to deploy, maintain and evolve advanced wireless infrastructure that allow these operators to offer multiple services while helping them reduce operating costs,” said Pablo Vazquez, president and general manager, Mexico and Mesoamerica, Nortel. “This latest project with CTI Movil reinforces Nortel’s position as one of the main providers of advanced wireless networks in the Southern Cone where we are committed to helping regional operators enhance the communication experience of their customers.”

The new CTI network provides both GPRS and EDGE capabilities bringing flexible and robust wireless 3G capabilities to users in Paraguay.

Nortel wireless technology is designed to maximize existing customer investments and help service providers drive down capital and operating costs. Nortel’s GSM/UMTS-based solutions are HSDPA-ready and designed to easily upgrade to support HSDPA through a software installation. This gives operators the flexibility to more cost-effectively upgrade their networks as needed to boost capacity to meet market demand for wide area broadband wireless data services.

Nortel currently works with other América Móvil operators in providing wireless technology solutions in other Latin American countries, including Claro in Brazil and SERCOM in Guatemala. Nortel is also currently working with CTI Argentina in building its coastal network.

Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel’s leadership in wireless data networks coupled with its enterprise strategy of delivering seamless voice, data, multimedia and converged IP-enabled solutions will allow businesses and consumers to enjoy a seamless, mobile broadband experience.

Nortel offers a full range of integrated professional services to provide end-to-end, multi-vendor network solutions that deliver significant business value for customers. Nortel provides the necessary services to successfully design, deploy, manage and maintain today’s multi-vendor networks and to facilitate transition to next generation technologies.

About America Movil

America Movil is the leading provide for wireless services in Latin America with operations in various countries in the Americas, and more that 84 million cell phone subscribers.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel’s restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel’s results of operations, financial condition and liquidity, and any related potential dilution of Nortel’s common shares; the findings of Nortel’s independent review and implementation of recommended remedial measures; the outcome of the ongoing independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel’s previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel’s internal control over financial reporting and the conclusion of Nortel’s management and independent auditor that Nortel’s internal control over financial reporting is ineffective, which could continue to impact Nortel’s ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel’s and NNL’s failure to timely file their financial statements and related periodic reports, including Nortel’s inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); the impact of management changes, including the termination for cause of Nortel’s former CEO, CFO and Controller in April 2004; the sufficiency of Nortel’s restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel’s customers; increased consolidation among Nortel’s customers and the loss of customers in certain markets; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; Nortel’s monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel’s ability to recruit and retain qualified employees; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel’s customers and the impact of customer financing and commitments; general stock market volatility; negative developments associated with Nortel’s supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortel’s supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; any undetected product defects, errors or failures; the future success of Nortel’s strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business. For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).

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Fabiana Coelho

Nortel

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