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November 12, 2003
Partner Communications Selects Nortel Networks for Israeli UMTS Network
3G Network to Boost Capacity, Enable Video Telephony, Reduce Operating Costs
TEL AVIV, Israel – Partner Communications Company Ltd. [NASDAQ/TASE: PTNR; LSE: PCCD] has selected Nortel Networks* [NYSE/TSX: NT] in a frame agreement with an estimated value of US$93 million to supply what is expected to be Israel’s first third generation (3G) UMTS wireless network.
Upon deployment, the network is expected to significantly boost voice and data capacity, while positioning Partner to offer advanced new services such as Person to Person Video Telephony that can change the way people communicate and drive new sources of revenue for Partner. “We are very pleased to announce the selection of Nortel Networks as our vendor to elevate Partner Communications to a new era of 3G mobile services,” said Amikam Cohen, chief executive officer, Partner Communications. “We are convinced that Nortel Networks experience and track record in wideband radio technology and packet core networking make them the best choice to partner with us, bringing to the exciting Israeli cellular market a variety of services which will open new horizons to the Israeli cellular customer.” Initial Partner UMTS deployment will begin by year-end 2003 in the Greater Tel Aviv area, and will be followed by deployments to enable national coverage across Israel. “We continue to see progress in the rollout of UMTS, and this deployment with Partner is another big step in our continued strategy to make 3G a reality,” said Pascal Debon, president, Wireless Networks, Nortel Networks. “Our experience in deploying and tuning large-scale code division-based networks and our core data networking expertise give us an advantage in helping customers like Partner launch their UMTS networks quickly and efficiently.” “This is a very important milestone for Nortel Networks, for Partner and for the advanced cellular market in Israel,” said Sorin Lupu, managing director, Nortel Networks Israel. “The Israeli race for wireless broadband services has begun, and we are very proud to have been chosen as Partner’s UMTS vendor. This is a highly-strategic project for Nortel Networks Israel, and for Nortel Networks globally considering it represents our first win with the Hutchison operator group.” Today’s announcement builds on Nortel Networks 25-year history in Israel. Nortel Networks is a leading provider of telecommunications equipment in Israel. The Israeli UMTS deployment also continues Nortel Networks market momentum in 3G Wireless Data Networks. Nortel Networks is deploying UMTS with top operators across Europe, and was recently selected by AT&T Wireless Services to deploy what is expected to be the first commercial UMTS network in North America. Partner Communications Company Ltd. is a leading Israeli mobile communications operator known for its GSM/GPRS based services and the development of wirefree applications under the orange™ brand. The Company commenced full commercial operations in January 1999 and, through its network, provides quality of service and a range of features to over 2 million subscribers in Israel. Partner subscribers can use roaming services in 123 destinations using 277 GSM networks. The Company was awarded a 3G license in 2002. Partner’s ADSs are quoted on NASDAQ under the symbol PTNR and on the London Stock Exchange (LSE) under the symbol PCCD. Its shares are quoted on the Tel Aviv Stock Exchange (TASE) under the symbol PTNR. For further information please visit: www.investors.partner.co.il** Based in Airport City, Nortel Networks Israel is a subsidiary of Nortel Networks. Active in Israel for 25 years, Nortel Networks is the country’s largest provider of telecommunications solutions, with clients including Pelephone, Cellcom, Bezeq, the Israeli Ministry of Defense and others. More information about Nortel Networks Israel can be found on the Web at www.nortelnetworks.com/israel 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 completion of the comprehensive review and the release of financial results and issuance of restated financial statements for 2000, 2001 and 2002 and the first and second quarters of 2003; the severity and duration of the industry adjustment and the 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; negative impacts on our gross margins; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; 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 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; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the impact of the New York Stock Exchange minimum listing requirements and the proposed consolidation of our common shares; the impact of supply and outsourcing contracts that 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 future success of our strategic alliances; and the adverse resolution of litigation and intellectual property disputes. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K 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. Use of the terms “partner” and “partnership” does not imply a legal partnership relationship between Nortel Networks and any other party. *Nortel Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks. **This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Jay Barta
Nortel Networks
+44 1628 43 8378
jbarta@nortelnetworks.com
Sabine Werb
Nortel Networks
+49 69 66971906
sabine.werb@nortelnetworks.com
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