T-Mobile Germany Enhances Security and Services with Nortel Wireless Solutions; Wireless Packet Core Solutions Enable New Bundling, Pricing of Data Services

Business Wire, Feb 15, 2005

FRANKFURT, Germany -- Mobile communications provider T-Mobile International will expand its deployment of wireless core network solutions from Nortel (NYSE:NT)(TSX:NT) for T-Mobile Germany with 'content aware' capabilities designed to help generate new revenues through highly personalized billing for content-based data services. These solutions are also designed to simplify management of network security for lower operating costs.

Under an agreement announced today, T-Mobile Germany will deploy Nortel's intelligent packet core solution, which provides flexible billing options for contract and pre-paid subscribers based on content accessed, time spent downloading, or volume of data downloaded. This is the second expansion of billing features for personalized mobile data services by T-Mobile International within its European networks. Planned deployment of content-based billing for T-Mobile UK was announced in July 2004.

In addition to enabling content-based billing, the Nortel solution will greatly simplify network design and help drive lower operating costs, reducing the need for a complicated mix of routers, load balancers, firewalls and switches external to the GGSN.

"The T-Mobile Germany deployment demonstrates that Nortel is working very closely with its customers to bring innovation to the wireless industry through next generation subscriber data services," said James Sapp, director, wireless product management and marketing, Nortel. "Our ability to help our customers lower their operating costs while reducing time-to-market of new subscriber services brings value to both the operator and their subscribers."

"The close relationship we have with T-Mobile is allowing Nortel to demonstrate the power of our packet core solutions and our expertise in wireless data networking," said Gerhard Hain, T-Mobile International account director, Nortel.

The packet core network agreement announced today is incremental to previous GPRS and UMTS core contract awards by T-Mobile International to Nortel. Nortel has been a supplier of GPRS and third generation (3G) wireless networking gear for T-Mobile International's Pan-European network since 2002, and currently supplies 3G core networking equipment in Germany, the United Kingdom, Czech Republic, The Netherlands and Austria.

About T-Mobile Germany

T-Mobile Germany is part of T-Mobile International, one of the world's leading companies in mobile communications. By Q3 of 2004, more than 109 million people were using the mobile communications services provided by companies in which T-Mobile or Deutsche Telekom have a majority or minority stake. And all that over a common technology platform based on GSM, the world's most successful digital wireless standard. This also makes T-Mobile the only mobile communications provider with a seamless transatlantic service.

Deutsche Telekom established T-Mobile on 1 July 1993. With about 9,000 people on the payroll, the enterprise operates in one of Germany's most dynamic growth markets, serving over 27,5 million subscribers in the country by the end of the third Quarter of 2004. As a result, T-Mobile is now Germany's biggest mobile communications provider and the market leader in terms of customers.

For more information about T-Mobile Germany, please visit www.t-mobile.de.

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; 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 controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and 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 our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in August 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;