BEIJING - Xinjiang Mobile Communications Corporation (MCC) has signed a contract with Nortel Networks* [NYSE/TSE: NT] to implement the fifth-phase expansion of its GSM 900 wireless network.

This expansion, estimated to be worth US$30 million, is expected to support up to 280,000 additional subscribers, and to strengthen a rapidly growing platform for delivery of high-performance Wireless Internet services.

The contract includes new Nortel Networks GSM 900 base stations, GSM Mobile Switching Centers, and integrated Signal Switching Points, which will enable Xinjiang MCC to build a distinctive new portfolio of revenue-generating Intelligent Network (IN) services.

"The current expansion by Xinjiang MCC, and the substantial increase in subscriber capacity, will create a strong and strategic platform for a whole new focus on the profitable delivery of advanced mobile services," said Robert Mao, president and chief executive officer, Nortel Networks (China) Ltd.

"This is our fifth expansion for Xinjiang MCC's GSM network, and it testifies to the quality and reliability of our solutions and services, and to the strength of the relationship that has evolved over the years," Mao said.

Nortel Networks is rapidly becoming the supplier-of-choice for growing numbers of Greater China carriers looking to respond to customer demand for mobile telephony, and to create scalable platforms for future delivery of high-performance Wireless Internet services. In the People's Republic of China alone, Nortel Networks has been awarded wireless network contracts in 17 of 31 provinces.

With its 'Wings of Light' strategy, which unifies IP (Internet Protocol), optical and wireless networking solutions, Nortel Networks is accelerating time-to-market and time-to-profit for wireless operators preparing to offer next generation Wireless Internet services. Nortel Networks has already demonstrated the fastest Wireless Internet in the world, with wireless data transmission at speeds more than 25 times faster than typically available today.

Nortel Networks ranks #1 in next generation Wireless Internet infrastructure strategy, according to Herschel Shosteck Associates (2000) and the Yankee Group (1999).

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.

*Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks.