Bakrie Telecom Expanding Indonesian Wireless Network with Nortel Solutions; Plans to Quadruple Capacity, Double Coverage of CDMA2000 1X Network.

JAKARTA, Indonesia -- PT Bakrie Telecom, a leading Indonesian fixed wireless telephone and wireless data operator, is significantly boosting the capacity and reach of its wireless network with new switching and radio access equipment from Nortel (NYSE:NT) (TSX:NT).

The increased capacity of the CDMA2000 1X network will help Bakrie meet accelerating customer demand and prepare for long-term growth. Bakrie is also deploying a new Nortel-based customer contact center in Jakarta.

"This current expansion will increase our network capacity four times while doubling our potential coverage area, allowing us to meet growing requests for new connections," said Anindya N. Bakrie, president director, Bakrie Telecom. "With Nortel as our technology partner, we are confident this network expansion will be implemented with the same speed and efficiency that characterized the rollout of the original network."

In addition to increasing network capacity, Nortel CDMA technology will help position PT Bakrie Telecom to offer a full suite of wireless broadband services such as Web browsing, streaming audio and video, multimedia messaging, VPNs, and other high-speed wireless data services that enhance the wireless experience for business and consumers.

In 2002, Nortel built the initial Bakrie Telecom network, covering Greater Jakarta and the neighboring coastal province of Banten. In 2003, Bakrie launched its fixed wireless "Esia" brand, and now provides voice and high-speed Internet, data and fax services.

"Nortel is strongly committed to Indonesia and to supporting Bakrie Telecom in realizing its long-term goal of three million CDMA2000 1X subscribers by 2008," said Mark Stevens, president, Southeast Asia, Nortel. "We will continue to provide Bakrie with our extensive experience in building secure and reliable communication networks that help enhance the human experience across the region and around the world."

Nortel is installing both core and access equipment, including 70 new CDMA radio base stations, radio base station controllers, an Optical TN-1X aggregator to ensure high service reliability, and a circuit switching platform to support CDMA wireless technologies in a single switch for Bakrie Telecom's new central office in Jakarta. Nortel will also provide Bakrie with a customer contact center solution for 100 agents, based on a Nortel Meridian 1 PBX and IVR (integrated voice response) system.

Nortel's experience in Indonesia spans more than 25 years. It has served leading enterprise and service provider customers including PT Telekomunikasi Indonesia (TELKOM), PT Indosat, PT Wireless Indonesia, Skytel and Satelindo (Indosat). Nortel has designed, deployed and launched more than 300 wireless networks in more than 70 countries around the world. Nortel was the first industry supplier to have wireless networks operating in all advanced radio technologies, and is the only end-to-end supplier of all new-generation wireless solutions.

About Bakrie Telecom

PT Bakrie Telecom is a business unit of PT Bakrie & Brothers Tbk, one of Indonesia's leading diversified group of companies, operating in the core businesses of telecommunications, infrastructure, plantations and automotive components. More information is available on the Web at www.bakrie-brothers.com.

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, and any related potential dilution of Nortel's common shares; 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 control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including 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 Nortel's and NNL's public filings; 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 and December 14, 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; increased consolidation among Nortel's customers and the loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; 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 and consolidation 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 of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; 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; any undetected product defects, errors or failures; 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, the Globemark, Meridian and Meridian 1 are trademarks of Nortel Networks. CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).

Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.