Nortel Focuses Municipal Wireless Investments, Partnerships to Accelerate Broadband Deployments

Toronto, Canada (ots/PRNewswire) -

- Driving Productivity and Efficiency for Municipal Operations,
Increasing Public Safety and Fueling Economic Development

Nortel(x) (NYSE: NT; TSX: NT) is increasing investments in its
Municipal Wireless Solution and services to help municipalities
easily bring affordable broadband services to their citizens. This
includes opening a municipal wireless lab, launching new promotions
for its Municipal Wireless Solution and accelerating collaboration
with some of the industry's leading applications vendors.

"We are committed to helping communities make wireless broadband
services affordable and available to everyone," said Dietmar Wendt,
president, Global Services, Nortel. "Nortel's Municipal Wireless
Solution and simplified business models are helping customers
maximise return on investment through improved productivity and
efficiency of government operations, increased public safety and new
economic growth. Municipal wireless is one of the key strategic areas
that will help drive Nortel's business momentum and growth, and we
plan to invest heavily in new resources that will help us lead this
market."

Nortel combines a comprehensive portfolio of Wireless Mesh,
Wireless LAN and WiMAX technologies with a full suite of Nortel
Global Services, giving customers the solutions they need to design,
deploy, support and evolve municipal wireless networks. Nortel's
global experience designing, launching and installing hundreds of
public and private wireless networks helps customers offset risk in
building privately-funded networks. For municipalities interested in
partnering with private sector companies, Nortel can help connect
customers with operators that best meet the economic development and
public safety needs of the community.

Nortel's dedicated municipal wireless lab is located in Research
Triangle Park, North Carolina and showcases the Company's entire
Municipal Wireless Solution. The lab focuses on research and
development of broadband wireless solutions that will allow
municipalities and operators to realise simplified introduction of
new wireless services and applications to boost economic development,
improve public safety and give citizens easier access to government
services. The lab also gives Nortel a collaborative environment in
which to fully test and integrate an expansive ecosystem of partners
to provide municipal applications.

Nortel is working with 121Media, Inc., Accela, Inc., Aptilo
Networks, Blue Vector Systems, NetMotion Wireless, Pronto Networks
and smarTVideo(TM) Technologies, Inc. to offer enhanced broadband
wireless applications. These applications include in-vehicle
communication services, automated meter reading, digital video
surveillance, asset or fleet tracking and monitoring, subscriber
management and access control and mobile television. In addition,
Nortel's Municipal Wireless Solution leverages the Nortel Multimedia
Communication Server 5100 to give customers access to a broad range
of voice and collaboration tools such as instant messaging and video
and audio conferencing.

"Through Nortel and NetMotion Wireless collaboration, police
officers, firefighters, inspectors and other public safety employees
will have the ability to securely and seamlessly roam while
maintaining session persistence with mission-critical applications
such as background checks or video surveillance," said John Knopf,
director of product management, NetMotion Wireless. "For years,
NetMotion Wireless' Mobility XE software has provided secure, remote
access to the public safety market, enabling real-time access to
information that keeps workers productive as they roam seamlessly
across a variety of networks. Our expertise in this market paired
with Nortel's strong presence in the municipal wireless space will
allow many new customers to experience the power of our combined
solutions."

To help municipalities and operators realise the benefits of
broadband wireless services, Nortel is offering customers 'get
started' wireless mesh kits in five and 10 wireless access point
bundles. From hardware to installation, these cost-effective packages
include everything a municipality needs to quickly deploy a full mesh
environment.

Nortel's Municipal Wireless Solution is being used in the largest
municipal wireless network in the world by the Taipei City government
in Taipei, Taiwan and by Golden Telecom in Europe's largest wireless
mesh network in Moscow, Russia. Golden Telecom is also conducting
trials with Nortel's Mobile WiMAX solution.

From rural to urban deployments, Nortel's Municipal Wireless
Solution is being used by governments and operators in multiple
countries, including Ariel, an Israeli settlement located on the West
Bank; Annapolis Wireless in Annapolis, Maryland; Bell Canada in the
Township of Chapleau, Ontario; the City of Kaohsiung, Taiwan;
Marshalltown, Iowa; Richardson, Texas; Simply Surf in Dunrobin,
Ottawa and the Special Areas Board of Alberta, Canada.

About Nortel

Nortel is a recognised 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 statements in this press release may contain words such as
"could", "expects", "may", "anticipates", "believes", "intends",
"estimates", "targets", "envisions", "seeks" and other similar
language and are considered forward-looking statements or information
under applicable securities legislation. These statements are based
on Nortel's current expectations, estimates, forecasts and
projections about the operating environment, economies and markets in
which Nortel operates. These statements are subject to important
assumptions, risks and uncertainties, which are difficult to predict
and the actual outcome may be materially different. Further, actual
results or events could differ materially from those contemplated in
forward-looking statements as a result of the following (i) risks and
uncertainties relating to Nortel's restatements and related matters
including: Nortel's most recent restatement and two previous
restatements of its financial statements and related events; the
negative impact on Nortel and NNL of their most recent restatement
and delay in filing their financial statements and related periodic
reports; legal judgments, fines, penalties or settlements, or any
substantial regulatory fines or other penalties or sanctions, related
to the ongoing regulatory and criminal investigations of Nortel in
the US and Canada; any significant pending civil litigation actions
not encompassed by Nortel's proposed class action settlement; any
substantial cash payment and/or significant dilution of Nortel's
existing equity positions resulting from the finalisation and
approval of its proposed class action settlement, or if such class
action settlement is not finalised, any larger settlements or awards
of damages in respect of such class actions; any unsuccessful
remediation of Nortel's material weaknesses in internal control over
financial reporting resulting in an inability to report Nortel's
results of operations and financial condition accurately and in a
timely manner; the time required to implement Nortel's remedial
measures; Nortel's inability to access, in its current form, its
shelf registration filed with the United States Securities and
Exchange Commission (SEC), and Nortel's below investment grade credit
rating and any further adverse effect on its credit rating due to
Nortel's restatements of its financial statements; any adverse affect
on Nortel's business and market price of its publicly traded
securities arising from continuing negative publicity related to
Nortel's restatements; Nortel's potential inability to attract or
retain the personnel necessary to achieve its business objectives;
any breach by Nortel of the continued listing requirements of the
NYSE or TSX causing the NYSE and/or the TSX to commence suspension or
delisting procedures; (ii) risks and uncertainties relating to
Nortel's business including: yearly and quarterly fluctuations of
Nortel's operating results; reduced demand and pricing pressures for
its products due to global economic conditions, significant
competition, competitive pricing practice, cautious capital spending
by customers, increased industry consolidation, rapidly changing
technologies, evolving industry standards, frequent new product
introductions and short product life cycles, and other trends and
industry characteristics affecting the telecommunications industry;
the sufficiency of recently announced restructuring actions,
including the potential for higher actual costs to be incurred in
connection with these restructuring actions compared to the estimated
costs of such actions and the ability to achieve the targeted cost
savings and reductions of Nortel's unfunded pension liability
deficit; any material and adverse affects on Nortel's performance if
its expectations regarding market demand for particular products
prove to be wrong or because of certain barriers in its efforts to
expand internationally; any reduction in Nortel's operating results
and any related volatility in the market price of its publicly traded
securities arising from any decline in its gross margin, or
fluctuations in foreign currency exchange rates; any negative
developments associated with Nortel's supply contract and contract
manufacturing agreements including as a result of using a sole
supplier for key optical networking solutions components, and any
defects or errors in Nortel's current or planned products; any
negative impact to Nortel of its failure to achieve its business
transformation objectives, including completion of the sale of its
UMTS access business to Alcatel; additional valuation allowances for
all or a portion of its deferred tax assets; Nortel's failure to
protect its intellectual property rights, or any adverse judgments or
settlements arising out of disputes regarding intellectual property;
changes in regulation of the Internet and/or other aspects of the
industry; Nortel's failure to successfully operate or integrate its
strategic acquisitions, or failure to consummate or succeed with its
strategic alliances; any negative effect of Nortel's failure to
evolve adequately its financial and managerial control and reporting
systems and processes, manage and grow its business, or create an
effective risk management strategy; and (iii) risks and uncertainties
relating to Nortel's liquidity, financing arrangements and capital
including: the impact of Nortel's most recent restatement and two
previous restatements of its financial statements; any inability of
Nortel to manage cash flow fluctuations to fund working capital
requirements or achieve its business objectives in a timely manner or
obtain additional sources of funding; high levels of debt,
limitations on Nortel capitalising on business opportunities because
of credit facility covenants, or on obtaining additional secured debt
pursuant to the provisions of indentures governing certain of
Nortel's public debt issues and the provisions of its credit
facilities; any increase of restricted cash requirements for Nortel
if it is unable to secure alternative support for obligations arising
from certain normal course business activities, or any inability of
Nortel's subsidiaries to provide it with sufficient funding; any
negative effect to Nortel of the need to make larger defined benefit
plans contributions in the future or exposure to customer credit
risks or inability of customers to fulfill payment obligations under
customer financing arrangements; any negative impact on Nortel's
ability to make future acquisitions, raise capital, issue debt and
retain employees arising from stock price volatility and further
declines in the market price of Nortel's publicly traded securities,
or any future share consolidation resulting in a lower total market
capitalisation or adverse effect on the liquidity of Nortel's common
shares. For additional information with respect to certain of these
and other factors, see Nortel's Annual Report on Form 10-K/A,
Quarterly Report on Form 10-Q and other securities filings 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.

(x) Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.

ots Originaltext: Nortel Networks
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Contact:
For further information: Christie Blake, +1-978-288-8439,
christbl@nortel.com; Greta Brown, +44-1628-432968, gretab@nortel.com