Biznet Launches High Speed Services Based on Nortel Solutions; New Metro Services Speed Delivery of Bandwidth-Hungry Business Applications.

JAKARTA, Indonesia -- Biznet, Indonesia's premium ISP and data center provider, has launched new metropolitan services, based on Nortel (NYSE:NT)(TSX:NT) optical Ethernet technology to meet corporate customer demand for high-performance, high-bandwidth business applications.

Nortel's Indonesia distributor, PT Harvest Perdana Kompakindo and its reseller PT Adi Multi Kreasi, deployed the system which has also been integrated with Biznet's existing IP service offerings.

"Ethernet technology has been widely used in corporate LANs for many years and Biznet is now taking that technology to the next level by extending Ethernet functionality beyond the LAN to deliver bandwidth-hungry applications across metro Jakarta," said Adi Kusma, President Director, Biznet. "The highly secure, robust and reliable connectivity of Nortel's Metro Ethernet solution provides a perfect fit with the capability of our fiber optic metro network to deliver last-mile access from 1 Mbps to 1 Gbps at an affordable price."

"Biznet now has a fast, reliable and efficient technology to break the bandwidth bottleneck between customer LANs and metropolitan Optical Ethernet to deliver today's high-bandwidth business-critical applications," said Terence Yap, managing director, Indonesia, Nortel. "These next generation Ethernet-based services will become an important driver in the growth of Biznet's comprehensive network services portfolio."

The new Biznet services include MetroNET, a bundled local loop and Internet access service at speeds up to 2 Mbps, and MetroWAN, a local loop service for interconnecting multiple locations across Jakarta's main business district. The services use Nortel's Ethernet Routing Switch 8600 to provide guaranteed bandwidth service levels, secure services with customer demarcation on a shared uplink, and Quality of Service (QoS) for triple-play applications such as voice, video and data.

Nortel's Ethernet Routing Switch 8600 delivers high-density, high-performance Layer 2-7 switching, routing and traffic classification. More than 35,000 units and 187,000 service cards have been shipped to service provider and enterprise customers around the world.

About Biznet

Biznet is one of the leading Network Access Provider in Indonesia delivering Carrier Grade Metro Ethernet services, Internet related services and Data Center facilities that works with businesses whose daily operations rely on premium connectivity, providing Fiber Optic network access, complete range of cutting-edge wired and wireless Internet related services, including disaster recovery facility and managed services under a secure and monitored environment to deliver an around-the-clock availability of IT mission critical operations. Biznet aims to be the dominant provider of Metro Ethernet Services and expects a considerable portion of the newly established world wide market to be driven by ever increasing bandwidth demand, capitalizing on the need of seamless communication. More information can be found at www.biz.net.id or direct at www.biz.net.id/metro.

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 ongoing 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); 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; general stock market volatility; 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; the future success of Nortel's strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business.

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.

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