Speednet, Nortel Networks to Deploy First 3G Wireless Network in Belize.

BELMOPAN, Belize -- Speednet, a new wireless operator in Belize, has selected Nortel Networks (NYSE:NT)(TSX:NT) as the exclusive provider of a third-generation (3G) wireless infrastructure to bring advanced mobile voice and data services to Speednet's customers throughout Belize.

Nortel Networks will immediately begin deployment of its CDMA2000 1X wireless solution portfolio, positioning Speednet to offer a suite of new applications including mobile Web browsing, e-mails, photos, video and music downloads, games, ring tones, location-based and push-to-talk services.

Speednet also plans to offer services in underserved rural areas of Belize, providing access to information and Internet services in low density areas. For business customers in Belize, Speednet plans to launch VPN Services, Wireless Broadband, Secure Corporate access and advanced wireless multimedia services based on Nortel Networks Wireless Data and Security solutions.

"Speednet was created as an alternative wireless service provider that could offer both residential and business customers value-added applications that can simplify the way they live, work and play, as well as giving them new ways in which to access information and educational resources," said Eduardo Santiago, chief executive officer, Speednet. "We chose Nortel Networks as our provider based on their global leadership in advanced wireless network deployments and proven portfolio of services and solutions that can allow us to rapidly meet our current business objectives and protect our investment as we grow."

Speednet has also chosen Nortel Networks to remotely monitor and manage its network through Nortel Networks Remote Operation Center (ROC). The ROC positions Speednet to reduce operational expenses while maintaining a reliable network. The comprehensive solution is managed through a single point of contact that provides network monitoring and prompt technical expertise.

"Starting out with a 3G network is an aggressive move that will immediately position Speednet to offer a great variety of sophisticated wireless services in Belize," said Kevin Taylor, vice president, Wireless Networks, Caribbean and Latin America, Nortel Networks. "We are working closely with them to build a world-class infrastructure, sharing our 30-plus years in regional experience as well as our technological expertise. And with Nortel Networks ROC management solution, Speednet is positioned to keep operating expenses low while they concentrate on delivering revenue-generating services to their customers."

Nortel Networks CDMA technology is designed to maximize existing customer investments and help service providers drive down capital and operating costs. A leader in CDMA since 1995, Nortel Networks has designed and deployed CDMA networks over varying terrain and population densities for more than 65 operators in 19 countries. Nortel Networks CDMA technology supports multiple frequencies simultaneously, including 450, 800, 1900 and 2100 MHz.

Nortel Networks ROC combines traditional network monitoring and event management services with fault resolution to offer end-to-end management solutions, providing reliable quality of service and requiring lower capital investments, which enable network owners to focus on core business goals.

Nortel Networks has designed, installed and launched more than 300 wireless networks in over 50 countries across the globe. Nortel Networks 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.

Speednet Telecommunications, Limited is a licensed wireless telecommunications provider in the country of Belize. Speednet was granted an INDIVIDUAL LICENCE and a SPECTRUM ALLOCATION by the Public Utilities Commission (the "PUC") of Belize in August, 2003, authorizing Speednet to operate a telecommunications network within the country. This license was granted for an initial period of 15 years, with subsequent renewal provisions. Speednet will operate and market its services in Belize under the "Smart" brand-name.

As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

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 Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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 Networks 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 of Nortel Networks purchase contracts; the impact of Nortel Networks 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; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.

For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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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