BB Mobile et Nortel r?ussissent les premiers tests japonais de la technologie HSDPA

(BW)(TX-NORTEL/BB-MOBILE)(NT)(NT.TO) BB Mobile, Nortel First to Demonstrate HSDPA Wireless Broadband in Japan

Business Editors/Technology Writers Networld+Interop 2005 Tokyo

TOKYO--(BUSINESS WIRE)--June 5, 2005-- Supercharged Wireless Broadband Tests Provide Path to Real-Time DVD-Quality Film, Gaming Applications. BB Mobile, a SOFTBANK Group company, and Nortel (NYSE:NT)(TSX:NT) have completed what is believed to be Japan's first 'supercharged' wireless data transmission of 14.4 million bits per second (Mbps) -- 30 times faster than today's commercially deployed wireless networks -- using Universal Mobile Telecommunications System (UMTS) technology. Live field tests were conducted with mobile handsets on BB Mobile's wireless network built by Nortel. The trial, using the 1.7 GHz radio frequency band for mobile communications, was the first time high-speed downlink packet access (HSDPA) technology has been demonstrated by any operator or wireless infrastructure supplier in Japan based on published announcements. BB Mobile and Nortel conducted HSDPA testing after a trial license for W-CDMA at 1.7GHz spectrum was issued on May 30, 2005. Nortel will showcase some of the test results during Networld+Interop 2005 Tokyo (Hall 5 - Booth# 5B05) beginning June 6, 2005

By successfully demonstrating supercharged high speeds and reliable transmission of data using HSDPA, BB Mobile and Nortel have taken a significant step forward in evolving BB Mobile's network to meet future demand for mobile broadband communication services. HSDPA is designed to advance wireless capabilities through delivery of new services like real-time DVD quality video, gaming applications, videoconferencing and split-second multimedia collaboration for business

"Nortel is working aggressively to establish a first mover advantage in HSDPA to create a differentiated solution that will position our customers for success," said Peter MacKinnon, president, GSM/UMTS, Nortel. "The trial with BB Mobile demonstrates how this mobile broadband capability elevates the user's experience to a new plateau, and we are proud to be working with innovative operators like BB Mobile." "BB Mobile consistently seeks ways to bring the very best in technology and value to our customers," said Hiroshi Ishihara, Director of Regulatory and External Affairs Department, BB Mobile

"This successful trial with Nortel allows us to take the next step in delivering enhanced features first to our users." HSDPA can significantly reduce operating costs for service providers while delivering high quality communications through more efficient use of existing networks. HSDPA makes it possible for networks to carry 30 times more data traffic and to support up to twice as many wireless users per cell site compared to today's UMTS networks

Nortel recently completed the industry's first HSDPA trial in Israel with Partner Communications. Nortel has also announced a series of industry milestones with leading chipset and data card vendors

Nortel has worked with a number of wireless operators on HSDPA trials and deployments in 2005, including mmO2, Orange (at 3GSM World Congress 2005 in Cannes, France), Vodafone (at CeBIT 2005 in Hanover, Germany) and mobilkom austria

Nortel has demonstrated the maximum data speed enabled by HSDPA -- 14.4 megabits per second -- on commercially-available equipment, including Nortel's UMTS Base Transceiver Stations (BTS) and UMTS Radio Network Controller (RNC) and terminals from Ubinetics.

Nortel's equipment is designed to be HSDPA-ready and to cost-effectively upgrade to support HSDPA through software installation The BB Mobile trial was held in Saitama prefecture using Nortel's core network for mobile communications and access network, including base stations. BB Mobile and Nortel plan to continue to work together on new wireless technologies in order to provide the best wireless experience for BB Mobile's customers

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, and is the only end-to-end provider of all next generation wireless solutions.

About SOFTBANK Group

SOFTBANK Group is a corporate group dedicated to the development of broadband-related businesses, building on the conviction that broadband will accelerate the pace of the IT revolution in the 21st century.

SOFTBANK is Japan's #1 provider of broadband infrastructure services, and its fixed-line broadband service Yahoo! BB has exceeded 30 percent household penetration in a few short years. The Group's BB Mobile subsidiary signals its move into broadband mobile telephony, data and multimedia services.

More information on SOFTBANK Group is available on the Web at www.softbank.co.jp.

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, and any related potential dilution of Nortel's common shares; 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 control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including 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 Nortel's and NNL's public filings; 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 and December 14, 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; increased consolidation among Nortel's customers and the loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; 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 and consolidation 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 of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; 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.

CONTACT:

Nortel

Takahide Miyatsu, +81 3 5740 1342 email: [email protected]

or

Jamie Moody, 972-684-7167 email: [email protected]

or

Ben Roome, +44 1628 43 3113 email: [email protected]

KEYWORD: TEXAS JAPAN INTERNATIONAL ASIA PACIFIC

INDUSTRY KEYWORD: ELECTRONIC GAMES/MULTIMEDIA TELECOMMUNICATIONS NETWORKING INTERNET E-COMMERCE TRADESHOW PRODUCT

SOURCE: Nortel