RFF Selects Nortel to Operate New Railway Communications Network in France; First GSM-R Services Contract for Railway Operator.

PARIS -- French railway operator Reseau Ferre de France (RFF) has selected Nortel (NYSE:NT)(TSX:NT) to provide network operation services to support the management of its GSM-R (Global System for Mobile Communication-Railway) network. Nortel will provide all daily operational activities to support RFF with the rollout of its network and help ensure quality of service.

With the introduction of a new wireless technology, RFF requires appropriate training and initial operational support to ensure smooth operation of its GSM-R network. The relationship with Nortel will speed RFF's training program and enable it to offer the best possible service.

In September 2003, RFF selected Nortel to supply its nationwide GSM-R network. Under the new services agreement, Nortel will handle the day-to-day management of the network and train SNCF employees, who will run the network for RFF during the early phases of the network rollout. Nortel's service capability is based on its experience in operational activities for major European wireless operators.

"Across Europe and Asia we are helping railway operators use the latest communications technology to reduce journey times and delays, enhance passenger safety, and run more trains more efficiently," said Scott Wickware, vice president, GSM/UMTS solutions, Nortel. "Our experience in this field is second to none, and Nortel continues to work with RFF to provide the best railway communications technology."

In addition to training, Nortel will deliver a suite of network operations services to RFF, including network surveillance, fault and performance management, process development, and software management. This portfolio of services is particularly applicable to railway industry customers.

Nortel is the world leader in GSM-R technology with more than 60 percent market share of lines deployed to date. Nortel is deploying nationwide GSM-R networks in France for RFF, in Great Britain for Network Rail, and in Germany for Deutsche Bahn. Nortel provided the end-to-end system for Deutsche Bahn's ICE high-speed line between Frankfurt and Cologne, and supplied the high-speed line between Rome and Naples in Italy for SIRTI. Nortel is also deploying a GSM-R network for the world's highest rail line, the Tibet-Qinghai high-speed line in China.

Nortel has been a pioneer in the GSM-R standards process since 1992, and has worked with UIC (Union Internationale des Chemins de Fer) and ETSI (European Telecommunications Standards Institute). Nortel supplied equipment for the MORANE (Mobile Radio for Railways Networks in Europe) trial and was a major contributor to the EIRENE (European Integrated Railway radio Enhanced Network) GSM-R standard.

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.

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