Movicel Selects Nortel for EV-DO Wireless Broadband Network in Africa; New Infrastructure to Improve Performance, Provide Capabilities for Wireless Voice, Data Services

Business Wire, August 11, 2005

LUANDA, Angola -- Movicel has selected Nortel (NYSE:NT)(TSX:NT) to upgrade its wireless network in Angola to CDMA2000 1xEV-DO technology to boost capacity of its MoviNet Service and help address growing nationwide demand for advanced wireless data services like telemedicine and Internet access.

Movicel is Africa's largest CDMA operator, providing high speed wireless broadband services to 350,000 subscribers in Angola's capital Luanda and eight major provinces -- Bengo, Kuanza Norte, Cabinda, Benguela, Huambo, Namibe, Zaire and Huila.

Nortel and Movicel demonstrated the new EV-DO services at the annual International Fair of Luanda (FILDA 2005) in Angola, July 11-17, 2005. The technology won the "Best Innovation Golden Lion" award as the outstanding technology at the show. FILDA is considered the biggest business and industrial exhibition of Angola with approximately 17 countries participating, including Portugal, Brazil, Spain, Germany, Argentina, Uruguay, South Africa, Mozambique, Zimbabwe, Namibia and several other African countries.

"Peace in Angola has led to growth in all areas, particularly the telecoms sector," said Jose Luis De Lara, chief technology officer, Movicel. "Today, Movicel offers Angolans the most advanced wireless technology and therefore the best quality services. Due to our upcoming upgrade with Nortel, we expect to enhance our product offering to a fully featured third generation national network and services such as MMS and high speed Internet access, targeting 1 to 1.5 million subscribers in five years time."

With commercial implementation of EV-DO, Movicel will be able to expand into new markets and offer enhanced wireless broadband services to large enterprises, medium and small offices, and residential subscribers.

CDMA2000 1xEV-DO is a packet data system offering high speed data rates (up to 2.4Mbps) on wireless networks. Nortel's solution helps maximize wireless operator investments while supporting subscriber retention via enhanced end user experience. Nortel's Metro Cell BTS, coupled with its full IP Core, enables delivery of a high-performance wireless data solution.

"Nortel's EV-DO technology is helping mobile operators like Movicel drive new, revenue-generating applications and deliver added value to its customers," said Michel Clement, president, France, Middle East, and Africa, Nortel. "With this deployment, Africa will move further toward a new era of advanced wireless services that have been shown to boost local economies around the world."

Nortel is deploying 1xEV-DO with a number of leading customers, including Smartcom (Chile), Verizon Wireless (United States), Bell Mobility (Canada), Telstra (Australia), Pelephone (Israel) and Eurotel Praha (Czech Republic). Nortel CDMA equipment is designed to support 1xEV-DO through modular upgrades to existing hardware. This approach provides a cost-effective and rapid method for bringing advanced wireless services to market.

Nortel CDMA technology is designed to maximize existing customer investments and help service providers drive down capital and operating costs. It supports multiple frequencies, including 450, 800, 1900 and 2100 MHz.

Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the first supplier with wireless networks operating in all advanced radio technologies and is the only end-to-end provider of all next generation wireless solutions.

Nortel's experience in Africa spans more than 20 years. It has served leading local enterprise and service provider customers including Telecom Egypt, Cellcom Liberia, Multi-Links Nigeria and SITA South Africa.

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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. 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 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); ongoing SEC reviews, which may result in changes to Nortel's and NNL's public filings; 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;