Nortel Becomes Strategic Vendor for Liberty Global - One of the World's Largest Cable Operators

Denver (ots/PRNewswire) -

- Liberty Global Signs Purchasing Agreement with Nortel Through
2007

Nortel(x) (NYSE/TSX: NT) today announced that Liberty Global, the
world's leading international cable operator, has signed a global
purchase agreement (GPA) with Nortel to cover purchases through 2007.
The GPA gives Liberty Global access to a uniform purchasing process
and pricing terms for Nortel's cable VoIP and optical solutions and
services.

With the agreement, Nortel is now an approved vendor across
Liberty Global's cable subsidiaries - such as UPC Broadband in
Europe, J:COM in Japan and VTR in Chile - that serve 15 million
customers in 18 countries around the world.

"Nortel's expanded relationship with Liberty Global is another
significant proof point to our leadership in the cable market," said
Dion Joannou, president, North America, Nortel. "Our VoIP and optical
transport solutions are now deployed in more than thirty cable
networks around the world."

"We anticipate telephone services utilising Voice over IP
technologies to be a tremendous service offering for our customers,"
said Tony Werner, senior vice president and chief technology officer,
Liberty Global. "This purchasing agreement furthers the strong
relationship we have with Nortel, and we look forward to having
Nortel continue to provide cable solutions that support VoIP and
other quality services that we deliver to our customers."

Products included in the global purchase agreement include
Communication Server (CS) 2000 and 2000-Compact, Nuera BTX and MG
3000 series media gateways, Multimedia Communication Server 5200,
Optical Metro 4000 series, Optical Metro 5000 series, Common Photonic
Layer (CPL), Optical Multiservice Edge (OME) 6500, Optical Long Haul
1600, and Optical Cross Connect DX. The agreement also includes
services from the Nortel Global Services portfolio.

Recent contracts awarded to Nortel by UPC Broadband will be rolled
into the GPA. This includes the deployment of Nortel's CS 2000-based
VoIP solutions in UPC's networks in the Netherlands and Austria. UPC
also has an installed base of Nortel CPL, OME 6500, OME 6110 and OM
5200 products from a deployment of video and high-speed data
transport solutions.

Nortel continues to gain momentum in the cable market with
solutions designed to help cable operators drive new revenue
opportunities and reduce operating costs. These comprehensive,
integrated cable solutions span broadcast and on-demand video
transport, voice and multimedia communications, high-speed data
services, high-bandwidth and voice services for business customers,
and next generation wireless access.

Nortel's cable customers include Cablevision, Cable Onda, Charter
Communications, Cogeco, Comcast, Cox Communications, Dacom, Eastlink,
Intercable, Jupiter, Kabel BW, Mediacom, NTL, Retecal, Rogers Cable,
Shaw Cablesystems, TeleCable, Telenet, Telewest, Time Warner Cable
and Unity Media.

About Nortel

Nortel is a recognised 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. Our next-generation technologies, for both service
providers and enterprises, span access and core networks, support
multimedia and business-critical applications, and help eliminate
today's barriers to efficiency, speed and performance by simplifying
networks and connecting people with information. 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 statements in this press release may contain words such as
"could", "expects", "may", "anticipates", "believes", "intends",
"estimates", "plans", "envisions", "seeks" and other similar language
and are considered forward-looking statements or information under
applicable securities legislation. These statements are based on
Nortel's current expectations, estimates, forecasts and projections
about the operating environment, economies and markets in which
Nortel operates. These statements are subject to important
assumptions, risks and uncertainties, which are difficult to predict
and the actual outcome may be materially different. Further, actual
results or events could differ materially from those contemplated in
forward- looking statements as a result of the following (i) risks
and uncertainties relating to Nortel's restatements and related
matters including: Nortel's most recent restatement and two previous
restatements of its financial statements and related events; the
negative impact on Nortel and NNL of their most recent restatement
and delay in filing their financial statements and related periodic
reports; legal judgments, fines, penalties or settlements, or any
substantial regulatory fines or other penalties or sanctions, related
to the ongoing regulatory and criminal investigations of Nortel in
the U.S. and Canada; any significant pending civil litigation actions
not encompassed by Nortel's proposed class action settlement; any
substantial cash payment and/or significant dilution of Nortel's
existing equity positions resulting from the finalisation and
approval of its proposed class action settlement, or if such proposed
class action settlement is not finalised, any larger settlements or
awards of damages in respect of such class actions; any unsuccessful
remediation of Nortel's material weaknesses in internal control over
financial reporting resulting in an inability to report Nortel's
results of operations and financial condition accurately and in a
timely manner; the time required to implement Nortel's remedial
measures; Nortel's inability to access, in its current form, its
shelf registration filed with the United States Securities and
Exchange Commission (SEC), and Nortel's below investment grade credit
rating and any further adverse effect on its credit rating due to
Nortel's restatements of its financial statements; any adverse affect
on Nortel's business and market price of its publicly traded
securities arising from continuing negative publicity related to
Nortel's restatements; Nortel's potential inability to attract or
retain the personnel necessary to achieve its business objectives;
any breach by Nortel of the continued listing requirements of the
NYSE or TSX causing the NYSE and/or the TSX to commence suspension or
delisting procedures; (ii) risks and uncertainties relating to
Nortel's business including: yearly and quarterly fluctuations of
Nortel's operating results; reduced demand and pricing pressures for
its products due to global economic conditions, significant
competition, competitive pricing practice, cautious capital spending
by customers, increased industry consolidation, rapidly changing
technologies, evolving industry standards, frequent new product
introductions and short product life cycles, and other trends and
industry characteristics affecting the telecommunications industry;
any material and adverse affects on Nortel's performance if its
expectations regarding market demand for particular products prove to
be wrong or because of certain barriers in its efforts to expand
internationally; any reduction in Nortel's operating results and any
related volatility in the market price of its publicly traded
securities arising from any decline in its gross margin, or
fluctuations in foreign currency exchange rates; any negative
developments associated with Nortel's supply contract and contract
manufacturing agreements including as a result of using a sole
supplier for key optical networking solutions components, and any
defects or errors in Nortel's current or planned products; any
negative impact to Nortel of its failure to achieve its business
transformation objectives; additional valuation allowances for all or
a portion of its deferred tax assets; Nortel's failure to protect its
intellectual property rights, or any adverse judgments or settlements
arising out of disputes regarding intellectual property; changes in
regulation of the Internet and/or other aspects of the industry;
Nortel's failure to successfully operate or integrate its strategic
acquisitions, or failure to consummate or succeed with its strategic
alliances; any negative effect of Nortel's failure to evolve
adequately its financial and managerial control and reporting systems
and processes, manage and grow its business, or create an effective
risk management strategy; and (iii) risks and uncertainties relating
to Nortel's liquidity, financing arrangements and capital including:
the impact of Nortel's most recent restatement and two previous
restatements of its financial statements; any inability of Nortel to
manage cash flow fluctuations to fund working capital requirements or
achieve its business objectives in a timely manner or obtain
additional sources of funding; high levels of debt, limitations on
Nortel capitalizing on business opportunities because of credit
facility covenants, or on obtaining additional secured debt pursuant
to the provisions of indentures governing certain of Nortel's public
debt issues and the provisions of its credit facilities; any increase
of restricted cash requirements for Nortel if it is unable to secure
alternative support for obligations arising from certain normal
course business activities, or any inability of Nortel's subsidiaries
to provide it with sufficient funding; any negative effect to Nortel
of the need to make larger defined benefit plans contributions in the
future or exposure to customer credit risks or inability of customers
to fulfill payment obligations under customer financing arrangements;
any negative impact on Nortel's ability to make future acquisitions,
raise capital, issue debt and retain employees arising from stock
price volatility and further declines in the market price of Nortel's
publicly traded securities, or any future share consolidation
resulting in a lower total market capitalisation or adverse effect on
the liquidity of Nortel's common shares. For additional information
with respect to certain of these and other factors, see Nortel's
Annual Report on Form 10- K/A, Quarterly Report on Form 10-Q and
other securities filings 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.

(x) Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.

ots Originaltext: Nortel Networks
Im Internet recherchierbar: http://www.presseportal.de

Contact:
For further information: Bo Gowan, +972-685-8278, bogowan@nortel.com;
Greta Brown, +44-1628-432968, gretab@nortel.com/