Dutchtone Selects Nortel Networks to Upgrade Wireless Network with GSM and GPRS.

Business Editors & High Tech Writers

LONDON--(BUSINESS WIRE)--April 23, 2002

Dutchtone, the Orange SA subsidiary in The Netherlands, has selected Nortel Networks (NYSE:NT) (TSE:NT.) to upgrade its wireless network with GSM and GPRS equipment and services, extending an existing relationship.

This agreement also builds on Nortel Networks global wireless momentum, following closely mmO2's selection (subject to execution of definitive agreements) of Nortel Networks to provide its core GPRS network across the UK, Isle of Man, Ireland, Germany and The Netherlands.

Nortel Networks has also recently announced: an estimated US$150 million CDMA2000 award with Pelephone in Israel; an estimated US$250 million UMTS agreement with Telefonica for Germany and Spain, and an estimated US$500 million award from Cingular Wireless for GSM and GPRS equipment in the United States.

Dutchtone is expanding its network and implementing Orange quality standards, which it expects to enable the best end-user quality experiences in Holland.

"Our aim is to provide the best performing network in The Netherlands, which is why we are substantially investing in adding radio sites, upgrading existing radio sites, and adding new solutions that offer the best results," said David Holiday, chief executive officer, Dutchtone. "With Nortel Networks equipment, we can ensure our customers have the highest standard of network quality."

Dutchtone is also preparing to address anticipated demand for commercial GPRS services. GPRS is designed to provide 'always on' service, enabling sessionless data transactions between devices and Internet servers. Dutchtone plans to launch GPRS in the near future.

"We have proven that our GSM and GPRS solutions provide a reliable platform to speed delivery of new services, and we're pleased Dutchtone is extending our already close relationship," said Pascal Debon, president, Wireless Networks, Nortel Networks. "We share the same commitment to network quality, and we are focused on continually improving the end-user experience."

Nortel Networks GPRS access solution provides faster downloads and shorter hold time, freeing network resources to provide faster overall response times for an enhanced end-user experience. It is also designed to enable high-value applications like real-time prepaid billing, virtual private networking, roaming, firewalls and other security features.

Dutchtone, employing 1,500 people, operates a DCS 1800 network for mobile communications. Dutchtone is a preferred supplier to the Dutch government. In July 2000, the company obtained a UMTS licence. Dutchtone N.V. is a 100 per cent subsidiary of Orange SA. Dutchtone invests substantially to further improve network quality and customer service quality in order to complete its alignment with Orange standards prior to the introduction of the Orange brand in The Netherlands. Orange is currently active in 20 countries and aims to have a presence in markets covering 1.5 billion people by 2005. By the end of 2001, Orange had more than 39 million customers worldwide.

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 Metro and Enterprise Networks, Wireless Networks and Optical Long Haul 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.

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