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February 23, 2004
Nortel Networks, Orange Deploy UMTS in Cannes
Rapid Deployment Delivers Live 3G Network inTime for 3GSM World Congress
CANNES, France – Nortel Networks* [NYSE/TSX: NT] and Orange have completed a five-month UMTS (Universal Mobile Telecommunications System) network deployment to provide live third generation (3G) coverage for Cannes and portions of Nice – including the airport – for 3GSM World Congress 2004.
In addition to this exceptionally fast deployment for 3GSM World Congress, Nortel Networks and Orange are extending UMTS coverage beyond Cannes and Nice to cover the entire Cóte d’Azur region and southern France. “The Cannes deployment required a very fast turn around, and Nortel Networks ability to react quickly was critical in making live UMTS a reality at 3GSM World Congress,” said Didier Quillot, executive vice president, Orange France. “Nortel Networks expertise in delivering on our requirements made them an ideal ‘partner’ for this deployment.” The Cannes network was deployed as part of the Orange UMTS market strategy unveiled at 3GSM World Conference 2004. The Cannes network will showcase UMTS to the wireless community assembled for the industry’s premiere trade show. “This is proof that 3G is real,” said Pascal Debon, president, Wireless Networks, Nortel Networks. “We are very proud to be standing with our long-time customer Orange to showcase live UMTS to the global wireless community.” UMTS services scheduled for demonstration over the Orange network in Cannes include consumer applications for mobile entertainment (video telephony, video streaming, video mail and interactive gaming) and business applications like secure, real-time intranet access, and sales force automation. Nortel Networks began installation of the Cannes network in October 2003 and completed build out in February 2004. Nortel Networks provided network engineering, installation, radio optimization, and associated network support services. Nortel Networks deployed Node B Internet base transceiver stations and supporting Radio Network Controllers. Radio performance was maximized to boost capacity inside the Palais de Festivals, where 3GSM World Congress 2004 is being held. The Cannes deployment builds on a long-time relationship between Nortel Networks and Orange. Nortel Networks has contributed to the international France Telecom SA/Orange mobile network for more than 15 years. Nortel Networks provides equipment for Orange networks in France and five other Orange networks across Europe. Orange and wirefree are trademarks of Orange PCS. The Orange group is one of the world’s largest mobile communications companies, with operations in 19 countries across Europe and beyond. It provides a broad range of personal communications services, including Orange GSM1800 services and other digital cellular telephone services. The Orange brand operates in the UK, France, Switzerland, Romania, Denmark, Slovakia, Luxembourg, Thailand, the Ivory Coast, the Dominican Republic, Cameroon, the Netherlands, Botswana and Madagascar. The Orange group also has controlled operations in Belgium (Mobistar). The Orange group has a joint controlling interest in Egypt (MobiNil) and minority interests in Portugal (Optimus), Austria (One), and Mumbai/India (BPL Mobile). As at the end of December 2003, Orange was the largest mobile operator in both the UK with over 13.6 million active customers, and France with over 20 million registered customers. As at the end of December 2003, Orange controlled companies had over 49 million customers worldwide. Further information about Orange can be found on the Orange website at www.orange.com.** 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 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; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; 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 dependence on new product development and our ability to predict market demand for particular products; 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; changes in regulation 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; risks associated with a 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 future success of our strategic alliances; and the adverse resolution of litigation, intellectual property disputes and similar matters. 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. *Nortel Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks.Use of the terms “partner” and “partnership” does not imply a legal partnership relationship between Nortel Networks and any other party. **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
Jennifer Usrey
Nortel Networks
(972) 684-4844
jusrey@nortelnetworks.com
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