EnergiMidt, Nortel Bringing Ultra Broadband `Triple Play' to Denmark; Danish Utility Company Plans to Offer Combined Voice, Data, TV in Early 2005.

COPENHAGEN, Denmark -- EnergiMidt, a Danish utility company, has selected Nortel (NYSE:NT)(TSX:NT) to help it deliver a 'triple play' of services -- a bundle consisting of voice, high-speed Internet access and television -- to its customers over an optical ultra broadband connection.

Using Nortel's passive optical network (PON) fibre-to-the-home (FTTH) technology, EnergiMidt customers will have access to a secure and reliable broadband connection that has massive capacity to deliver information at speeds up to hundreds of megabits per second. This new fiber network to homes and businesses unlocks the investment potential for a host of new multimedia services, both now and in the future, including bandwidth intensive applications like Video-on-Demand and high-definition TV.

Nortel is also providing EnergiMidt with a carrier-grade optical network to provide transport for the massive amount of video and data traffic that its new services will generate. For enterprise customers, EnergiMidt will offer services like virtual private networks (VPN), which allow multiple sites to be seamlessly tied together into a single secure network.

"Consumer broadband services are starting to evolve at a rapid pace as voice, data, and video services converge onto a single network infrastructure," said Martin Romvig, general manager, EnergiMidt Broadband. "It is vital that we put a network in place that is capable of delivering a competitive triple-play offer today, with the capacity to accommodate new types of services in the future. Our plan is to offer these new services over an ultra broadband network to all of our 162,000 customers."

Nortel is providing a complete, turnkey solution including network equipment, professional services and network management for EnergiMidt under a contract signed in November 2004. EnergiMidt will be initially providing TV services, high-speed Internet access, and voice over IP (VoIP) telephone services to both consumers and businesses.

"A key requirement for rolling out the new services is to make the transition for new subscribers as easy and as convenient as possible," Romvig said. "Nortel is helping us minimize the time to turn up new subscribers by providing a solution that reuses the existing wiring and phone, data and TV equipment in the home."

EnergiMidt will be adopting a phased rollout of its service to its current energy customers, aiming for approximately 2000 subscribers by the end of 2005. As part of an aggressive deployment strategy, EnergiMidt will connect each of the homes passed by their FTTH deployment, thus greatly reducing the time to turn up service for new customers.

"Nortel is delighted to be part of EnergiMidt's entry into the telecommunications services market with this scaleable and reliable fiber infrastructure," said Peter Newcombe, president, Carrier Networks, EMEA (Europe, Middle East, Africa), Nortel. "The move to deploy an FTTH solution provides them with investment protection well into the future as they take a leadership role in changing the communications landscape in Europe."

EnergiMidt's triple-play solution is comprised of Nortel's Broadband Access Services Gateway (BASG) product line, Nortel's optical Ethernet portfolio and a host of leading video and in-home networking partners -- all brought together, tested and approved by Nortel to form a world-class triple-play solution. The technologies behind Nortel's BASG portfolio are supplied by ECI Telecom (Nasdaq:ECIL), a global leader in DSL and PON products.

About EnergiMidt

EnergiMidt was formed in 2002 through the merger of three existing local energy companies. EnergiMidt delivers electricity and energy support services to 162,000 customers in the mid Jutland region of Denmark. EnergiMidt is the fourth largest energy company in Denmark employing 350 people. The main aim of EnergiMidt is to ensure stable power supply, competitive power pricing and deliver superior customer service. EnergiMidt is also active within a range of related fields including energy conservation services, electrician services and the sale of heat pumps and solar power solutions.

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 Nortel's independent review and planned restatement or revisions of its previously announced or filed financial results; the resolution of the accounting issues announced on November 11, 2004, including the outcome of discussions with the United States Securities and Exchange Commission (SEC); the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel's filing obligations on support facilities and public debt obligations; any potential delisting or suspension of the Company's or NNL's securities; the adverse resolution of litigation, investigations, intellectual property disputes and similar matters; 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; the communication by Nortel's auditors of the existence of material weaknesses in internal controls; Nortel's ability to recruit and retain qualified employees; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; 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 flows; 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 of Nortel's 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.

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