China Mobile Awards Nortel Networks US$105 Million in GSM Expansion Contracts; Industry-Leading Solutions to Accelerate Advance of High-Performance Wireless Internet.

Business/High-Tech Editors

BEIJING--(BUSINESS WIRE)--April 26, 2001

China Mobile, the largest wireless carrier in China, has awarded Nortel Networks (NYSE:NT)(TSE:NT.) new contracts estimated to be worth more than US$105 million for major expansions of GSM digital cellular networks in Hebei, Anhui and Guizhou provinces, further strengthening Nortel Networks leadership position in delivering the high-performance Wireless Internet to China.

The China Mobile Hebei contract -- estimated to be worth US$83 million -- calls for Nortel Networks to implement the seventh expansion of the province's GSM 900/1800 dual-band digital cellular network, covering five key southern cities and increasing network subscriber capacity by one million to a total of five million subscribers.

In Anhui and Guizhou provinces, Nortel Networks will enhance existing GSM 900 networks to deliver GSM 900/1800 dual-band wireless services. Nortel Networks will also increase Anhui's network capacity by 140,000 subscribers to a total of 300,000, and Guizhou's by 330,000 to a total of 930,000. All three expanded networks are scheduled to be in commercial service by September 2001.

"These three network expansions will create strategic platforms for a whole new focus by China Mobile on profitable delivery of advanced mobile services," said Robert Mao, president and chief executive officer, Nortel Networks China.

"China Mobile's selection of Nortel Networks for its ongoing GSM network expansion projects strongly endorses the quality and reliability of our solutions and services, as well as our ability to efficiently extend mobile network coverage and subscriber capacity," Mao said. "These are all key factors in accelerating the advance of the high-performance Wireless Internet across the country."

Nortel Networks 'Wings of Light' strategy -- unifying IP (Internet Protocol), optical and wireless networking solutions -- is helping wireless operators around the world speed time-to-market and time-to-profit as they prepare to offer next generation Wireless Internet services.

Nortel Networks rose to the No. 1 position in the global telecommunications equipment market in 2000 according to Gartner, a leading market intelligence firm. Nortel Networks is a leader in the Wireless Internet market with new awards announced in excess of $US2.1 billion over the past year. In addition, Nortel Networks ranks No. 1 in next generation Wireless Internet infrastructure strategy, according to The Shosteck Group (2000) and the Yankee Group (1999). In the People's Republic of China alone, Nortel Networks has been awarded wireless network contracts in 17 of 31 provinces.

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.

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