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September 23, 2003
French Railway Manager RFF Selects Nortel Networks for Nationwide GSM-R Network
PARIS – French railway infrastructure manager RFF (Réseau Ferré de France) and the French railway operator SNCF (Société Nationale des Chemins de fer Français) have selected Nortel Networks* [NYSE/TSX: NT] to provision a France-wide GSM-R (Global System for Mobile Communication-Railway) network under a 15-year agreement signed by RFF and estimated to be worth US$200 million.
The new GSM-R system will handle all voice and data communications for operation of trains within 15,000 kilometres of track as a replacement for the existing analog radio system. The project will be underway by mid-2004 on the new Eastern France High Speed Line (first phase of the future Paris-Strasbourg high speed line). Service to railway operators is expected to be delivered on the first commercial lines by end of 2005. “The deployment of GSM-R is a key element to upgrading the French railway infrastructure and to its interoperability with other European networks,” says Jean-Michel Richard, director of RFF railway infrastructure. “Choosing Nortel Networks GSM-R technology demonstrates the lasting quality of this system which is derived from the public mobile infrastructure GSM.” “With this new agreement, the industry’s second largest GSM-R award announced to date, Nortel Networks continues to demonstrate its strong technological and market position in GSM-R,” said Vivian Hudson, president and general manager, GSM/GPRS/EDGE, Nortel Networks. “When completed, this project will bring the total length of track we have deployed using GSM-R technology to 43,000 kilometres, more than any other vendor in the world.” Nortel Networks GSM-R infrastructure provides features and telematics applications to enable railway operators to enhance emergency procedures, improve the operational efficiency and safety of existing transport systems and reduce the overall cost of operations. Network performance is also improved with GSM-R, bringing enhanced Quality of Service and reliability and providing clear voice and data communications to high-speed trains travelling up to 300 kilometres per hour. GSM-R is a cost effective, professional, radio-communications system that uses standard GSM technology with additional features customized for railway operations. GPRS (General Packet Radio Service) is a major part of GSM-R for data transport supporting applications and making the infrastructure both ‘future proof’ and compliant with GSM-R standards. It is also oriented toward new, location-specific services and applications like wireless local area networks (WLAN). A common frequency range is used in all GSM-R networks to achieve international interoperability and spectrum efficiency. Leveraging more than 10 years experience in GSM-R technology, Nortel Networks will now be supplying GSM-R in a number of countries, including France, Germany, the UK, Italy and Slovakia. Nortel Networks provided the GSM-R end-to-end system of the new German ICE high-speed line in commercial operation between Frankfurt and Cologne, as well as the high-speed line between Rome and Naples. Nortel Networks has been a pioneer in the GSM-R standards process since 1992, and continues to work with UIC (Union Internationale des Chemins de Fer) and ETSI (European Telecommunications Standards Institute). Nortel Networks supplied the equipment for the MORANE (Mobile Radio for Railways Networks in Europe) trial, working with SNCF since the beginning of 1996, and was a major contributor to the EIRENE (European Integrated Railway radio Enhanced Network) GSM-R standard. The French Railway infrastructure (RFF) is a French industrial and commercial state institution, created for the renewal of the French railway transportation system by a February 13, 1997 law. Its mission is to ensure the “layout, development, coherence and enhancement of France’s national railway infrastructure,” which it owns. RFF is responsible for the maintenance of this infrastructure, which the SNCF looks after on its behalf, along with the overall infrastructure operability and traffic management. Moreover, the RFF is in charge of laying-out and developing the infrastructure through investments to the national railway network. More information on RFF can be found on the Web at: www.rff.fr.** Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. 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 severity and duration of the industry adjustment and continued reductions in spending by our customers; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact on our gross margins and other impacts of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development and our ability to predict market demand for particular products; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; the impact of a consolidation of our common shares; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the outcome of our asset and liability review; the future success of our strategic alliances; risks related to our defined benefit plans; the impact of additional valuation allowances for all or a portion of our deferred tax assets required if market conditions further deteriorate or future results of operations are less than expected; an inability of our subsidiaries to provide funding to the respective parent companies; restrictions on our cash as cash collateral if satisfactory arrangements for alternative support for certain obligations are not in place; and the adverse resolution of litigation and intellectual property disputes. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. *Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks. **This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Isabelle Tadmoury
Nortel Networks
+33 1 69 55 12 91
tadmoury@nortel.com
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