News Release

Nortel Outlines CDMA 1xEV-DO Revision A Strategy

Technology Expected to Increase Operator Revenue Potential, Improve End User Experience With High Speed Data Services

March 14, 2005

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

NEW ORLEANS, LA — Nortel (NYSE:NT) (TSX:NT), a global telecommunications leader in wireless infrastructure and advanced third-generation (3G) technologies, plans to offer CDMA2000 1xEV-DO (evolution data optimized) Revision A (DO Rev A) technology designed to allow CDMA network operators, including Verizon Wireless, to increase revenues through improved high speed data services.

Announced today at CTIA Wireless 2005, the largest wireless tradeshow in North America, Nortel's DO Rev A technology will allow CDMA network operators to provide more feature-rich wireless services such as interactive 3D gaming, mobile music, and a variety of IP services including Voice over Internet Protocol (VoIP) and high-speed file transfers. It will also support virtual real-time interactive access to services such as push-to-talk, mobile television, and video telephony.

"Given the tremendous success and momentum of 1xEV-DO, Nortel has embarked on an aggressive program to deliver 1xEV-DO Rev A," said Richard Lowe, president, CDMA, Nortel. "Nortel's DO Rev A technology will allow operators to serve more customers on the same spectrum while delivering VoIP and other advanced multimedia services that enhance the end user's experience and increase subscriber loyalty."

The DO Rev A technology delivers peak data rate bursts up to 3.1 Mbps (megabits per second) on the forward link and up to 1.8 Mbps on the reverse link. DO Rev A operates in the 1.25 MHz channel and is optimized for packet data service that provides one of the lowest costs per bit when compared to other cellular technologies.

"DO Revision A is the logical next step for us to consider as we pursue our goal to migrate our 1xEV-DO 3G network to deliver the latest applications and services to our customers," said Ed Salas, vice president of network planning, Verizon Wireless. "EV-DO Rev A fits in with our mantra of providing our business and individual customers superior voice and data networks in the U.S."

Nortel is planning live market trials with Verizon Wireless beginning in 2006.

DO Rev A technology builds on Nortel's leadership position in CDMA and extends the scope of its investment protection strategy. Nortel's CDMA base stations can be upgraded to DO Rev A through simple modular upgrades, allowing all other existing hardware and software to be reused. Nortel currently supplies EV-DO to 11 out of the 17 operators that have commercially launched across the globe. Nortel was the first to commercially offer DO in South America with Vesper, the first in Central America with BSI Guatemala, the first in Australia with Telstra and the first to commercially offer DO in 450 MHz in Eastern Europe with Eurotel.

DO Rev A allows operators to manage various users and applications with different levels of priority, making it possible to offer tiered services and multiple pricing options for different types of services and applications. Operators also can make additional security enhancements by using authentication mechanisms that allow the operator to identify users and give specific access rights to services based on the user's profile.

DO Rev A has been approved by the 3GPP2 Technical Specification Group (TSG-C). Nortel has been a major contributor to the development of 1xEV-DO Rev. 0 and Rev. A standards in 3GPP2. Nortel has proposed key concepts to the standards that improve packing efficiency for High Rate Packet Data (HRPD) Air interface. Nortel was also instrumental in providing leadership in the development process of 1xEV-DO Revision A physical layer.

Nortel is an industry innovator and at the forefront of all broadband access technologies, including wide area cellular, wireline and wireless LAN. 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 (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, as well as edge and core network solutions for IP, ATM and optical transport.

About Verizon Wireless
Verizon Wireless owns and operates the nation's most reliable wireless network, serving 43.8 million voice and data customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE:VOD) (LSE:VOD). Find more information on the Web at www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.  

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 April 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 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.

####