Nortel Wireless LAN Cable Solution for 'Hotspot' Deployments Now Ava

    Business Editors/High-Tech Writers

    TORONTO--(BUSINESS WIRE)--Jan. 26, 2005--Nortel (NYSE:NT)(TSX:NT) today announced commercial availability of Nortel WLAN Cable Access Point 6220, a wireless local area network product specifically designed for the cable market. This product allows cable operators to provide access to secure high-speed Internet and network services at 'hotspots' in public locations and residential neighborhoods.
    "Cable operators are looking to bring to market new service bundles that include innovative services such as hotspots in order to win customer loyalty and build deeper relationships with subscribers," said Lindsay Schroth, senior analyst of Broadband Access Technologies, Yankee Group. "Nortel's WLAN solution enables hotspot service and gives cable operators a fast, low-cost alternative for delivering high speed data service to new business customers by eliminating the time, permits, and construction costs with traditional cable deployments."
    Hotspots, which can significantly increase productivity of businesses and consumers, allow users to access network services throughout the community in places like restaurants, university campuses, airports and train stations. WLAN Cable Access Point 6220 gives cable operators a cost-effective way to establish hotspots and generate new revenue opportunities by allowing people to access the network either as cable subscribers or by paying access fees.
    "Wireless LAN technology offers cable operators an efficient way to deliver hotspot services beyond a subscriber's home, extending access to the network as well as the connection between operator and consumer," said Dan Mondor, general manager, Global Cable Solutions, Nortel. "We are bringing to market another powerful cable solution that gives operators the reliability, scalability and security needed to deliver differentiated service offerings and aggressively compete in this market. The flexibility to offer hotspot or high speed data services to business and consumers, without compromising network or end-user security, is a real-world example of Nortel's commitment to develop solutions and products that address the needs of cable operators and lay the foundation of success for our customers."
    In addition to hotspot service, the WLAN Cable Access Point 6220 can be configured to deliver secure high speed data service to businesses in areas currently difficult to service because of distance from the network or challenges to installing cable.
    In a high-speed data service deployment, the solution consists of three components: a strand-mounted Access Point (APU) Unit; a Corporate Services Unit (CSU) that receives wireless signals from the APU; and a choice of directional or omni-directional antennas. When in hotspot mode, users connect directly to the Access Point Unit using Wi-Fi enabled devices such as laptops and PDAs.
    Nortel's solutions are designed to help cable operators drive new revenue opportunities and reduce operating costs. Nortel's comprehensive, integrated cable solutions span video and video on-demand, voice and multimedia communications, high-speed data services, managed network services for business customers, and next generation access.
    Nortel continues to execute on its three commitments to the cable service provider market - new product development geared specifically to cable applications; commitment to the technology and standards organizations that serve the cable industry; and implementing real-world solutions that address the fundamental business and networking challenges of cable operators.
    The Wireless LAN Cable Access Point 6220 complements Nortel's existing end-to-end wireless solutions from the service provider to the enterprise, including wireless mesh, WLAN and core cellular technologies. In addition, Nortel has designed, installed and launched more than 300 wireless networks in over 50 countries across the globe 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; 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 controls over financial reporting; 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 August 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 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; 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 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 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; 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 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.

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CONTACT: Nortel Networks Christie Blake, 978-288-8439 christbl@nortel.com or Ben Roome, +44 1628 43 3113 benroome@nortel.com www.nortel.com

KEYWORD: TEXAS INTERNATIONAL CANADA INDUSTRY KEYWORD: HARDWARE TELECOMMUNICATIONS SOFTWARE NETWORKING PRODUCT SOURCE: Nortel Networks

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