Bell Mobility, Nortel to Deliver Canada's Fastest, Most Advanced Wireless Data Network; Contract Extension Supports CDMA2000 1X Network Expansion, 1xEV-DO Deployment

Business Wire, June 1, 2005

TORONTO -- Bell Mobility, Canada's leading wireless carrier, has signed an estimated US$126 million (C$160 million) multi-year contract with Nortel (NYSE:NT) (TSX:NT) for equipment to enable the country's fastest and most advanced wireless data network, which is expected to deliver services at speeds up to six times faster than what is currently available.

The network, to be powered by Nortel's CDMA2000 1X and 1xEV-DO (Evolution-Data Optimized) third generation (3G) wireless technology, will help enhance the user experience by enabling such services as video mail and messaging, wireless gaming and content streaming at speeds close to high-speed wireline connections.

"Nortel is making it possible for us to deliver on our commitment to offer subscribers the latest and most advanced wireless services available today," said Almis Ledas, vice president, corporate development, Bell Mobility, a wholly owned division of Bell Canada. "The EVDO network will offer Canada's fastest wireless experience and deliver leading-edge innovation to the market to revolutionize the way Canadians use their mobile devices."

With what is expected to be the first commercial deployment in Canada of a next generation wireless data network using EV-DO technology, Bell Mobility customers will be able to download data on their mobile devices at speeds up to 2.4 megabits per second with average speeds of 300-500 kilobits per second. Bell Mobility announced its intention to build the EV-DO network in December 2004, and the company plans to offer initial EV-DO services in select markets in 2005.

"We've seen how EV-DO can greatly enhance the end user experience through our work in the United States and across the globe, and we look forward to bringing this technology to Canadian businesses and consumers with Bell Mobility, Canada's most innovative wireless operator," said Richard Lowe, president, CDMA, Nortel. "This agreement with Bell Mobility demonstrates our continued leadership in delivering advanced and innovative wireless data solutions to operators around the world."

Nortel supplies EV-DO equipment to 12 of the 19 operators across the globe who currently offer commercial EV-DO service. Nortel provided the equipment to the first operators to launch commercial EV-DO services in South America (Vesper), Central America (BSI Guatemala), and Australia (Telstra). Nortel also provided EV-DO equipment to Eurotel for the first commercial 450 MHz EV-DO service in Eastern Europe.

Under the new agreement with Bell Mobility, Nortel will provide CDMA2000 1X radio base stations, base station controllers, switching platforms and other related equipment. Nortel will also supply Bell Mobility with CDMA2000 1xEV-DO equipment for initial deployment in Toronto and Montreal.

Nortel CDMA equipment is designed to support EV-DO through simple upgrades to existing hardware, which simplifies Bell Mobility's migration from 1X to EV-DO. This approach provides a cost effective and rapid method for enhancing the end user experience by delivering advanced wireless services and applications.

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.

About Bell Canada

Bell Canada, Canada's national leader in communications, provides connectivity to residential and business customers through wired and wireless voice and data communications, local and long distance phone services, high speed and wireless Internet access, IP-broadband services, e-business solutions and satellite television services. Bell Canada is wholly owned by BCE Inc. For more information, please visit www.bell.ca.

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;