Nortel Networks Secures US$100 Million GSM Agreement With Microcell; Deal to Expand Network Capacity, Speed Delivery of `Always On' Wireless Data Services

Business Wire, Feb 19, 2002

Business Editors & High-Tech Writers

TORONTO--(BUSINESS WIRE)--Feb. 19, 2002

Microcell Connexions, a wholly owned subsidiary of Microcell Telecommunications Inc. (TSE:MTI.B)(Nasdaq:MICT) has signed a three-year GSM (Global System for Mobile Communications) supply agreement with Nortel Networks (NYSE:NT)(TSE:NT.) estimated to be worth approximately US$100 million (CDN$150 million) for upgrades to its Canadian wireless network.

Nortel Networks will supply GSM radio base station and switching equipment to support Microcell's delivery of next generation wireless data services, and to help Microcell manage subscriber growth. Nortel Networks technology will position Microcell to deploy advanced wireless data services, such as advanced EDGE (Enhanced Data rate for GSM Evolution) and AMR (Adaptive Multi-Rate) GSM Services, for its approximately 1.2 million customers.

With this agreement, Nortel Networks will become the leading supplier of GSM switching equipment for Microcell's national network, including Toronto and Montreal. Nortel Networks GSM technology is currently deployed in a number of other Microcell markets, including Vancouver, Victoria, Calgary, Edmonton, Regina, Saskatoon, Winnipeg and Halifax.

"As a recognized market innovator in the Canadian PCS sector, Microcell is committed to offering superior network services to its rapidly growing customer base," said Andre Tremblay, president and chief executive officer, Microcell Telecommunications.

"Using Nortel Networks proven technology, we will further enhance our network's presence, capacity, quality and ability to support new, innovative wireless services in our continued effort to better suit the needs and expectations of our diversified clientele," Tremblay said.

"We're pleased to provide equipment and services to Microcell, one of Canada's fastest growing wireless operators," said Pascal Debon, president, Wireless Networks, Nortel Networks. "Nortel Networks industry-leading wireless infrastructure technology will help position Microcell to create efficiencies and reduce operating costs. In addition, GSM enhancements like EDGE and AMR will position Microcell to improve voice quality and manage rapid subscriber growth."

Nortel Networks has provided wireless infrastructure to Microcell since 1996, contributing significantly to deployment of Microcell's network in Western Canada and the Maritimes. Nortel Networks is also the primary network solution provider for Microcell's prepaid wireless services.

Nortel Networks has deployed 70 GSM/GPRS networks in 40 countries, including BLU in Italy; One 2 One in the UK; Viag Interkom in Germany; France Telecom; VoiceStream Wireless and AT&T Wireless in the United States; Sunday in Hong Kong; and Telstra in Australia.

Microcell Telecommunications, a leading Canadian wireless operator, has been a public company since October 15, 1997, and is a member of the TSE 300, TSE 200 and S&P/TSE Canadian SmallCap indices. Microcell's head office is located in Montreal.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.

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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to make acquisitions and/or 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; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.