Nortel Makes Future More Affordable for Wireless Service Providers

Market Wire, February, 2008

Wireless service providers seeking to offer advanced voice and data capabilities without replacing existing network gear take note. Nortel(1) (TSX: NT)(NYSE: NT) has your solution.

In an industry first, Nortel is demonstrating at Mobile World Congress (2) in Barcelona (Hall 8, B145) the ability to provide VoIP calling using a 2G/3G GSM/UMTS core network to host 4G WiMAX access. This is good news for GSM and UMTS wireless operators looking to evolve to 4G, as they can look to Nortel's innovative technology to cost-effectively support it all: current 2G and 3G voice and text services as well as future 4G communication services like advanced mobile broadband.

"Just as the wireless phone revolutionized voice telephony by freeing the user from wires and stationary constraints, mobile broadband is doing the same for high speed data communications," said Graham Richardson, general manager, GSM Networks, Nortel. "This industry-first demonstration proves that Nortel is committed to designing solutions that protect wireless operator investments, allowing them to support today's subscriber demand for voice and text services as well as future 4G services like end-to-end IP and high-quality streaming video."

Nortel has all the elements needed to bring carriers successfully into the 4G world: innovation in WiMAX and LTE, a strong ecosystem, all IP-core, and a deep understanding of what consumer and business users are looking for from their wireless experience.

In a futuristic scenario, Nortel is showing a user with a 4G mobile broadband device placing and receiving calls and controlling device access using Nortel's 4G-enabled 2G and 3G Mobile Switching Centre (MSC) Server and Media Gateway . These are components of Nortel's globally available All-IP GSM and UMTS Voice Core product line. Nortel's All-IP MSC Server, operating on commercial off-the-shelf ATCA technology to support today's GSM/UMTS voice communications, blends today's 2G/3G call control with next generation SIP signaling for voice services at the end-user terminal.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. 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 from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports 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.

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Contacts: Nortel Miranda MacDonald (905) 863-1098 Email: mirandam@nortel.com Website: www.nortel.com