Nortel Helps Neuf Deliver TWIN(TM) Fixed/Mobile Convergence to French Market

Paris (ots/PRNewswire) -

- IMS-Ready Technology Enables France's First GSM/WiFi Consumer
Service

Neuf Cegetel, the leading alternative operator in France, is using
an IMS-ready solution from Nortel(x) (NYSE: NT , TSX: NT) to deliver
TWIN(xx), the country's first affordable fixed/mobile convergence
service. The GSM/WiFi TWIN service will enable subscribers to save
between 10% and 30% on their mobile phone expenditure and also to
benefit from a broadband Internet connection at up to 11 Mbit/s.

The Neuf Cegetel TWIN service uses Nortel's industry-leading
carrier VoIP and IMS-ready technology. This provides unified voice,
messaging and multimedia communications services for use at home or
for working remotely with high-speed broadband Internet connections.

Neuf Cegetel estimates users of TWIN are achieving savings of up
to 30%(xxx) on their mobile phone fees. Under WiFi coverage the TWIN
phone automatically connects to the Neuf box or WiFi community
access point and calls are made at the same price as calls from a
landline phone. Users will also benefit from receiving one,
convenient consolidated phone bill.

"The future of communications will depend on multiple network
types - both wireless and wireline - working together on a
converged/unified network to provide anywhere, anytime access a
communication experience," said Lee Doyle, group vice president,
Network Infrastructure, IDC. "Service providers that deliver
fixed/mobile convergence services are better able to retain
customers and reduce customer churn by allowing users to stay
connected, regardless of device or location. It will also help
increase enterprises productivity and customer service."

"TWIN is the first true converged fixed-mobile telephony service
in France and demonstrates Neuf Cegetel leadership in delivering
innovative services to the marketplace," said François Paulus,
general manager, Network and Marketing division, Neuf Cegetel.
"Nortel has delivered a cutting-edge technology to allow us to lead
in the converged telecommunication market. People today want to be
able to communicate effectively whether they are at home, at work,
or traveling. Nortel technology is enabling Neuf Cegetel to harness
the power of converging all networks over IP providing users with
feature-rich communications from any broadband connection
worldwide."

"Users want their communications experience to fit their lifestyle
and follow them regardless of their network connection or location,"
said Michel Clement, president, Southern Europe, Nortel. "Our
solution for Neuf Cegetel is IMS-ready, which means that they can
easily and cost-effectively add advanced multimedia services
according to their business objectives. Nortel's IMS solution
liberates communications from physical boundaries, delivering a
consistent communications experience across cellular and WiFi
networks."

The TWIN mobile terminal benefits from innovations developed by
Neuf Cegetel working with Nortel since 2005 as part of the Neuf
BeautifulPhone project. The trial tests convergence technologies
under live conditions some of which will, over time, be used to
enhance the TWIN service.

Neuf Cegetel has more than 1.4 million residential broadband
customers in France. Since June 2004, Neuf Cegetel has been using a
Nortel solution to provide VoIP services to more than 500,000 of
those customers.

The solution for Neuf Cegetel includes Nortel's IMS-ready
Multimedia Communication Server 5200 (MCS 5200) which seamlessly
integrates voice with video, collaboration, and presence services.
This solution leverages SIP to enable service providers to deliver
seamless handover between cellular and WiFi technologies and create
new revenue-generating opportunities for service providers.

Nortel's IMS solution is access-aware and supports 3GPP (IMS),
3GPP2 (MMD), Packet Cable 2.0 and TISPAN standards. According to
Synergy Research Group, Nortel ranked number one in the global
markets for service provider softswitches and gateways for the first
half of 2006. Nortel is currently engaged in IMS trials with leading
operators in wireline, cable, CDMA and GSM/UMTS markets.

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. 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.

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"estimates ", "targets", "envisions", "seeks" and other similar
language and are considered forward-looking statements or
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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
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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
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personnel necessary to achieve its business objectives; any breach by
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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;
the sufficiency of recently announced restructuring actions,
including the potential for higher actual costs to be incurred in
connection with these restructuring actions compared to the
estimated costs of such actions and the ability to achieve the
targeted cost savings and reductions of Nortel's unfunded pension
liability deficit; 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, including completion of the sale of its
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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 capitalization 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.

(xx) TWIN is a trademark of Neuf Cegetel

(xxx) Data from mobile operators: 30% of calls made using mobile
phones are made in the subscriber's home

ots Originaltext: Nortel Networks
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Contact:
For further information: Isabelle Tadmoury, +33-1-6955-1291,
tadmoury@nortel.com; Greta Brown, +44-1628-43-2968,
gretab@nortel.com; Jamie Moody, (+972)-684-7167, moodyjam@nortel.com