Nortel Provides Vital Wireless Link to U.S. Navy to Support Tsunami Hu

Nortel Provides Vital Wireless Link to U.S. Navy to Support Tsunami Humanitarian Relief Efforts

    Business Editors/Technology Editors

    WASHINGTON--(BUSINESS WIRE)--Feb. 22, 2005--

Additionally, Company and Employee Donations Surpass US$1.2 Million
    Nortel (NYSE:NT) (TSX:NT) announced today that the company is providing a mobile communications system to support U.S. Navy humanitarian relief efforts in areas of Indonesia affected by the recent tsunami. Nortel's solution is enabling communications for Navy military and medical personnel operating from the hospital ship USNS Mercy deployed off the coast of Banda Aceh.
    "There are few things more rewarding than being part of a humanitarian effort," said Bill Owens, president and chief executive officer, Nortel. "It gives Nortel great pride to assist the Navy in this critical mission. The power of communications is at its greatest when it is harnessed to help those in need."
    Nortel and three subcontractors -- Cell-Tel Government Systems, Inc., Maritime Telecommunications Network and Global Broadband Solutions (GBS), LLC -- dispatched a team of engineers and technicians to the area and deployed the 'fly-away' transportable solution. This Global System for Mobile Communications (GSM) solution can be deployed in two-day's time anywhere in the world where satellite access is available.
    The Nortel solution augments the Navy's tactical radio network, which is used to support the high volume of communications needed by the medical relief staff. It is capable of providing extended reach of up to 10 miles off the ship when required by the crew of the MERCY, thus providing ship-to-shore communications as required.
    Additionally, Nortel's employee and corporate tsunami relief donation program has almost doubled its original objective to more than US$1.2 million. Employees surpassed the company's initial challenge to match a corporate donation of US$350,000 by donating more than US$675,000. Nortel is now matching US$500,000, bringing the company's total monetary donation to nearly US$1.2 million. Nortel's gift is being divided among the Red Cross, UNICEF and CARE.
    "The people of Nortel are indeed standing tall today with this remarkable display of compassion and generosity," Owens said. "Enhancing the human experience is at the cornerstone of our corporate philosophy. Increasingly, you will see Nortel helping people to meet the greatest challenges, cutting across education, literacy and health care while at the same time powering economic development and global commerce."

    About Nortel

    Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

    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 outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;
    cautious or reduced spending by Nortel's customers; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's 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 Nortel's 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, which is currently not available, of Nortel's forward purchase contracts; the impact of Nortel's 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; and the future success of Nortel's strategic alliances.
    For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel 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.

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

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CONTACT: Nortel Ann Fuller, 613-768-1208 email: afuller@nortel.com or Ben Atherton, +44 1628 43 8526 email: bena@nortel.com or John Pappas, 202-715-1514 email: john.pappas@dittus.com

KEYWORD: DISTRICT OF COLUMBIA TEXAS INDONESIA INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING AEROSPACE/DEFENSE GOVERNMENT PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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