Partner, Nortel Complete Industry's First HSDPA Wireless Broadband Trial in Israel.

TEL AVIV -- Technology Improves Subscriber Experience with Real Time DVD-Quality Video Streaming, High Speed Music Transfer and other Multimedia Applications

Partner Communications Company Ltd. and Nortel (NYSE: NT) (TSX: NT) have successfully completed a trial of high-speed downlink packet access (HSDPA) wireless broadband technology over its live cellular network in Tel Aviv. Partner is joining a limited number of cellular networks around the world which intend to implement HSDPA.

HSDPA has the ability to deliver broadband wireless at speeds of up to three times faster than today's commercially deployed UMTS (Universal Mobile Telecommunications System) networks, offering a true mobile broadband experience to subscribers comparable to DSL or ADSL.

The trial, showcased today in Tel Aviv, is the first time HSDPA technology has been demonstrated by any operator or wireless infrastructure supplier in Israel. Nortel and Partner demonstrated advanced wireless and multimedia broadband services, including high-speed music transfers (MP3), DVD-quality video streaming and downloads of large e-mail attachments. The demonstrations were performed simultaneously with two different computers with connection speeds of more than 1 mega bit per second (mbps) over a UMTS network provided by Nortel.

"We are proud to have successfully completed Israel's first HSDPA wireless broadband trial on a live cellular network," said Alon Berman, vice president, Technologies, Partner. "Today's announcement demonstrates our commitment of offering the best user experience available to Israeli subscribers while continuously leading the market in technological development."

"We are proud to mark this milestone with Partner," said Alain Biston, vice president, GSM/UMTS, Nortel. "Nortel was the first company in the industry to complete live test calls using HSDPA technology from moving automobiles with commercial mobile phones. The experience we have gained will allow us to accompany Partner in this significant step towards offering HSDPA services commercially, while positioning Partner at the forefront of the world's technology."

HSDPA is the next generation of UMTS, which enables a significant increase in the rate of data downloads. This improvement will enable Partner's customers to enhance their user experience beyond their current experience with UMTS:

--Feature rich applications - faster and better quality video and audio services as well as advanced interactive services

--Faster data rates - connecting laptops to high speed mobile Internet services at data rates of 3.6-14.4 mbps

--Higher network capacity - capable of supporting up to three times as much data traffic and up to twice as many wireless users per cell site.

Nortel's UMTS equipment is designed to enable efficient and cost-effective migration to HSDPA through a simple software installation, eliminating the need for costly hardware replacements.

Nortel recently announced a series of industry milestones with leading chipset and data card vendors. Nortel has also worked with a number of wireless operators on HSDPA trials and deployments in 2005, including mmO2, Orange (at 3GSM World Congress 2005 in Cannes, France), Vodafone (at CeBIT 2005 in Hanover, Germany) and mobilkom austria. Nortel has also announced plans for a major Pan-European HSDPA network deployment.

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, and is the only end-to-end provider of all next generation wireless solutions.

In 2003 Partner selected Nortel to supply Israel's first third-generation (3G) UMTS network. Today, Partner's commercial UMTS network covers 92% of the population in Israel.

Based in Airport City, Nortel Israel is a subsidiary of Nortel Networks. Active in Israel for more than 25 years, Nortel is the country's largest provider of telecommunications solutions, with clients including Pelephone, Cellcom, Bezeq, the Israeli Ministry of Defense and others. More information about Nortel Israel can be found on the Web at www.nortel.com/israel.

About Partner

Partner Communications Company Ltd. is a leading Israeli mobile communications operator known for its GSM/GPRS/UMTS based services and applications under the orange(TM) brand. The Company commenced full commercial operations in January 1999 and, through its network, provides quality of service and a range of features to 2.372 million subscribers in Israel. Partner subscribers can use roaming services in 154 destinations using 335 GSM networks. The Company launched its 3G network in 2004. Partner's ADSs are quoted on NASDAQ under the symbol PTNR and on the London Stock Exchange (LSE) under the symbol PCCD. Its shares are quoted on the Tel Aviv Stock Exchange (TASE) under the symbol PTNR. For further information please visit: www.investors.partner.co.il.

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 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 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 or early settlement, which is currently not available, 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.