New University Customers Deploy Nortel Solutions to Enhance Innovation and the Learning Experience; Solutions Extend the Classroom Across Campus and Beyond.

ORLANDO, Fla. -- Today at the EDUCAUSE 2005 conference in Orlando, Nortel (NYSE:NT)(TSX:NT) announced new customers and deployments of multimedia and campus mobility solutions that enable universities to transform the learning environment.

Nortel solutions improve the way education institutions conduct research, teach students and collaborate at many universities, including new deployments at Northwestern University, North Carolina Central University, the University of Nebraska, Kings College, the Institute of Education, University of London (UK), University of Regina (Canada) and Wodonga TAFE (Australia). In addition, Nortel solutions serve research institutions, including the recent deployment with the Shared Hierarchical Academic Research Computing Network (SHARCNET) of Canada. More information about these deployments can be found at www.nortel.com/corporate/news/newsreleases/2005d/education.html.

Nortel's education solutions provide a competitive edge, enabling universities to attract top-notch students and faculty through advanced technologies that allow distance learning, anytime wireless access and real-time multimedia collaboration for students, faculty and staff.

"Nortel is focused on delivering solutions to higher education that extend the traditional campus through more secure, mobile communication access that enhances the education experience for students, faculty and administrative staff," said Dan Young, vice president, Global Industry Solutions, Nortel. "Our mobility and multimedia solutions extend the classroom across campus and beyond by creating mobile learning environments where students benefit from improved access to professors, university services and learning on-demand programs."

North Carolina Central University needed a reliable, redundant network that would enable complete campus mobility via wireless connectivity to all campus resources. By deploying both Nortel's WLAN 2300 and Wireless Mesh solutions, the university's students, faculty, and staff will have the flexibility to access online resources from anywhere on campus and are no longer constrained to working in a traditional classroom environment.

"Having a fully wireless-enabled campus extends the boundaries of education far beyond the classroom and laboratory environment while at the same time providing new innovative teaching and learning opportunities for our students," said Dr. James H. Ammons, Chancellor, North Carolina Central University.

"We look forward to extending our wireless network to support access to video from security cameras for our Campus Public Safety officers and access to recorded video streams via laptops for students to learn anywhere, anytime," said Greg Marrow, North Carolina Central University Chief Information Officer.

Northwestern University, recognized for the quality of its educational programs, is currently deploying Nortel's Multimedia Communication Server (MCS) 5100 to provide leading-edge, multimedia collaboration between students, faculty, and staff.

"We chose Nortel because it was a cost effective way to improve our infrastructure," said David Carr, director of telecommunications and networking services, at Northwestern University. "We are looking forward to providing new value to our Community once the MCS 5100 is fully deployed."

Kings College also deployed the MCS 5100 to enable new collaboration capabilities among students and faculty as well as to integrate leading-edge technology into their liberal arts curriculum.

Nortel also announced today that Coppin State University is the winner of the 2005 EDUCAUSE award for excellence in networking. Coppin State has used its converged IP network from Nortel to transform its teaching, research, and administrative environment and to achieve the goals of its Technology Fluency Program. Its communications technology has become a competitive differentiator for the university, helping to attract new "net-generation" students, retain top faculty and optimize the operational efficiency of its administration.

At EDUCAUSE 2005, Nortel will feature its latest technology innovations for higher education institutions that deliver a secure, mobile, collaborative learning experience. Nortel will be demonstrating its award-winning multimedia collaboration and IP telephony solutions at booth 216.

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 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); ongoing SEC reviews, which may result in changes to Nortel's and NNL's public filings; 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; 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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