News Release

Verizon Wireless, Nortel Networks Launch EV-DO BroadbandAccess 3G Network in Additional U. S. Markets

September 22, 2004

Jeffrey Nelson
Jeffrey.Nelson@VerizonWireless.com
908-306-4824Jamie Moody
Nortel Networks
moodyjam@nortelnetworks.com
972-684-7167

BEDMINSTER, NJ — With Monday's upcoming launch of Verizon Wireless' third generation (3G) wide-area BroadbandAccess network in 14 major metropolitan areas and 24 airports in the United States, Verizon Wireless is offering large enterprises, small-medium businesses and mobile professionals the fastest commercially-available wide-area fully mobile data experience in the nation.

BroadbandAccess allows customers to conduct business anywhere in the BroadbandAccess coverage area via a secure, true high-speed data connection with typical user download speeds of 300-500 kilobits per second (kbps).

BroadbandAccess is powered in part by CDMA2000 1xEV-DO (Evolution-Data Optimized) 3G wireless equipment from Nortel Networks* [NYSE/TSX: NT]. As part of the network build nationwide, Nortel Networks upgraded Verizon Wireless' existing base stations and modules and provided associated services.

"Nortel Networks is pleased to assist Verizon Wireless in expanding its BroadbandAccess network to enterprise customers who want 3G service today," said Pascal Debon, president, Wireless Networks, Nortel Networks. "This service launch is another proof point that 3G has arrived in the United States and that Nortel Networks technology is helping to make it a reality."

BroadbandAccess was initially launched in three markets — Washington D.C. and San Diego in October 2003 and Las Vegas in July 2004 — and is currently being deployed in more than 11 additional markets and 20 additional airports from coast to coast. In addition to the initial three markets, business customers can now use BroadbandAccess in Atlanta; Austin, Texas; Baltimore; Kansas City, Kan.; Kansas City, Mo.; Los Angeles; Miami; Fort Lauderdale, Fla.; Milwaukee; New York; Philadelphia; Tampa and West Palm Beach, Fla.

Verizon Wireless plans to deploy the technology in additional markets by the end of 2004, giving BroadbandAccess a national coverage of 75 million people. Market expansions will continue through 2005. BroadbandAccess allows enterprise customers to access information when they are out of the office at broadband-like speeds. BroadbandAccess customers can download a 1 megabyte e-mail attachment (for example, a small PowerPoint presentation or a large PDF file) or receive three digital pictures (each 400 x 600 pixels) in less than 30 seconds.

"Nortel Networks has been a great partner in helping Verizon Wireless deploy BroadbandAccess, delivering proven equipment in our efforts to expand the fastest commercially available wireless network in the nation today," said Dick Lynch, executive vice president and chief technical officer of Verizon Wireless. "With Nortel Networks support, we are continuing to build on our strategy to provide business and individual customers superior voice and data networks in the United States."

Nortel Networks CDMA equipment is designed to support 1xEV-DO through modular upgrades to existing hardware. This approach re-uses existing base station equipment to reduce or eliminate the need for costly hardware replacements.

Nortel Networks has provided wireless equipment to Verizon Wireless and its predecessor companies since 1996. Nortel Networks was the primary wireless infrastructure supplier in San Diego for Verizon Wireless' initial commercial deployment of BroadbandAccess in October 2003. In March 2004, the companies signed a two-year agreement under which Verizon Wireless expects to spend US$167 million with Nortel Networks on wireless equipment for BroadbandAccess through 2005.

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 17 countries. Nortel Networks CDMA technology supports multiple frequencies, including 450, 800, 1900 and 2100 MHz.

About Verizon Wireless
Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 40.4 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications [NYSE:VZ] and Vodafone [NYSE and LSE: VOD]. Find more information on the Web at www.verizonwireless.com. To receive broadcast-quality video footage of Verizon Wireless operations, log onto www.thenewsmarket.com/verizonwireless.  

About Nortel Networks
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.

*Nortel Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks.

Use of the terms "partner" and "partnership" does not imply a legal partnership relationship between Nortel Networks and any other party.

####