Intercable to Bring Triple-Play to Venezuela with Nortel Solutions; Cable Operator to Expand Broadband Services with IP Telephony and Multimedia Applications.

CARACAS, Venezuela -- Intercable, the leading cable service provider in Venezuela, has selected a cable voice over Internet Protocol (VoIP) solution from Nortel (NYSE:NT) (TSX:NT) to expand its portfolio of broadband services.

With the upgraded infrastructure, Intercable plans to offer new IP Telephony and additional multimedia applications to both residential and enterprise customers across the country as possibly the first Triple-Play service provider in Venezuela.

"We are continuing a tradition of offering the most advanced services," said Eduardo Stigol, president, Intercable. "Nortel has the proven solutions and solid experience in building IP networks that will allow us to add IP Telephony and other integrated voice and video communications to our existing cable and broadband Internet service options."

The complete portfolio of Nortel Cable VoIP solutions will enable Intercable to add IP-based voice services like Local and Long Distance Telephony to its broadband portfolio. The addition of voice services will position Intercable as a Triple-Play provider, offering consumers a bundle of voice, high-speed Internet access and television services.

Intercable will deploy Nortel's Communication Server (CS) 2000-Compact, which enables cable operators to deliver the full suite of traditional voice services to business and residential customers on a packetized network. Also included in this deployment will be Nortel's Media Gateway 15000 and 3200, designed to help switch voice calls more cost-effectively with the public phone network.

Intercable will also implement Nortel's Multimedia Communication Server (MCS) 5200, a Session Initiation Protocol (SIP)-based media and application server, to enable enhanced communications regardless of location, access type or media. The MCS 5200 will allow Intercable to offer SIP-based multimedia services including desktop video calling, instant messaging and collaboration tools to its customers.

In 2004, Intercable received the INTE Award, presented by the Izzara Publishing Group, for best Cable TV provider in the Hispanic TV market (spanning Latin America, Spain and the United States), specifically for its constant technology innovation and quality and breadth of services.

"Nortel works with all types of operators in the region and around the world, delivering leading-edge technology and helping to build advanced communication infrastructures," said Manuel Terrero, vice president, Wireline Networks for Nortel in the Caribbean and Latin America. "We are pleased to work with such a constant innovator as Intercable. Leveraging our regional expertise and broad portfolio of carrier-grade solutions, we will deliver a network that will position Intercable to further improve performance, security and reliability and enhance the communication experience of its customers."

About Intercable

Intercable is a leader in the Venezuelan paid TV market and an important provider of high speed Internet services, with speeds up to 4 Mbps. Backed by internationally recognized shareholders, including Hicks, Muse, Tate & Furst, Intercable has built the second largest fixed network in Venezuela and plans to start offering Telephony services (Cable VoIP) during the second quarter of 2005 in at least 12 cities.

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; 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 controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and 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 our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; 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, 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; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; 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 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, which is currently not available, of Nortel's forward 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.

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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