Nortel First to Achieve Industry Certification for Complete HSDPA, UMTS, GSM Solutions; Quality Maturity Vital for Supercharged Wireless Readiness in First Half 2006.

PARIS -- Nortel (NYSE:NT)(TSX:NT) has become the first wireless networks supplier to successfully complete a TL 9000 consolidation registration(a) across an end-to-end portfolio of hardware, software and services for HSDPA (High Speed Downlink Packet Access), UMTS (Universal Mobile Telecommunications System) and GSM (Global System Mobile) wireless infrastructure solutions.

"Quality leadership is an important differentiator for Nortel, allowing our customers to be confident in all our wireless solutions," said Alain Biston, vice president, GSM and UMTS portfolio, Nortel. "Process and quality maturity is vital for Nortel as we enter HSDPA solutions into trials and demonstrations, scheduled for market deployment in the first half of 2006."

"For Nortel, completing the industry's most comprehensive consolidated certification has resulted in streamlined and simplified processes, shorter timelines, and harmonized measurements," said Agnes Sleiman, GSM and UMTS quality and business processes leader, Nortel. "It is also expected to generate improvements in the customer experience with Nortel development, fulfillment and deployment processes, and to further increase the quality of Nortel products, solutions and services."

The TL 9000 standard for Quality Management System Requirements and Measurements was developed by the QuEST Forum, a leading industry group comprised of telecommunications companies including service providers, infrastructure vendors, second-tier suppliers, and liaison bodies. It was designed to raise the bar on ISO 9000 standards by providing a more comprehensive quality, reliability and measurement system around the end-to-end deployment of network infrastructure and associated support services.

The scope of this certification covers portfolio marketing, product management, design and development, build, delivery, introduction and support of wireless networks using UMTS/HSDPA and GSM/GPRS/EDGE telecommunications network equipment.

Specific products covered under this consolidated TL 9000 certification include the following GSM and UMTS access, circuit core, packet core, and network management systems product categories:

--MSC: Mobile Switching Center

--HLR: Home Location Register

--SGSN: Service GPRS Support Node

--GGSN: Gateway GPRS Support Node

--PCU-SN: Packet Control Unit Support Node

--MG: Media gateway

--RNC: Radio Network Controller

--BSC: Base Station Controller

--TCU: Transceiver Coding Unit

--iBTS: Internet Base Station

--BTS: Base Transceiver Stations

--OAM: Operation Administration and Maintenance

--OMC-R: Operations and Maintenance Center - Radio

--MLC: Mobile Location Center

The certification also includes network engineering, installation, and technical support services.

Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN) and is the only end-to-end provider of all next generation wireless 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 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; stock market volatility generally and as a result of acceleration of the settlement date of Nortel's forward purchase contracts; 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; 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.

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

(a) For confirmation, see QuEST real-time database at www.questforum.org/tl9000/tl_reg.htm.