San Jose propose un acc?s plus s?r et plus ?tendu aux services de la ville gr?ce aux solutions de Nortel; les fonctionnalit?s de communication du nouvel h?tel de ville sont fournies en temps voulu et dans les limites du budget

( BW)(CA-NORTEL)(NT)(NT.TO) San Jose Provides Broader Secure Access to City Services with Nortel Solutions; Communication Capabilities for New City Hall Delivered On Time, On Budget

Business Editors/Technology Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--June 9, 2005--The City of San Jose today launched broader and more secure access to city services for its citizens, and 'anywhere, anytime' interaction with city officials using advanced communication capabilities powered by solutions from Nortel (NYSE:NT)(TSX:NT) and delivered on time and on budget

The new City Hall's communications infrastructure from Nortel converges multiple networks into one that provides voice, data, wireless, multimedia, video conferencing and Internet Protocol (IP) capabilities. It also allows city officials to communicate as effectively away from their offices as they would sitting at their desks

The Nortel communications solution provides leading-edge security for the City of San Jose, enabling more productive collaboration among city officials and citizens and enhanced protection against viruses, hackers and other security threats

"We greatly appreciate this opportunity to work together with the City of San Jose to provide enhanced communications that will serve as a foundation for building closer working relationships between the City and its citizens," said Malcolm Collins, president, Enterprise Networks, Nortel.

"It is a testament to our valued relationship that we delivered this network on time and on budget. We look forward to continuing our relationship with the City of San Jose to ensure uninterrupted and enhanced communications support at the new City Hall." Nortel is a leading provider of government solutions worldwide with the broadest portfolio in the industry, leveraging expertise in new technologies like IP telephony, virtual private networks, Optical Ethernet, advanced multiservice switching and wireless local area networks

Nortel was awarded the converged network solution by the San Jose City Council on March 16, 2005.

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

Pat Cooper, 425-450-7523 email: [email protected]

or

Angelika Kempf, +44 1628 43 7340 email: [email protected]