Verizon Wireless Launches San Diego 3G Network Powered Exclusively by Nortel Networks

SAN DIEGO, CA — Verizon Wireless, the nation's #1 wireless carrier, and Nortel Networks (NYSE:NT)(TSX:NT) announced today the commercial launch of a third generation (3G) wireless data network - referred to as BroadbandAccess - for customers in San Diego.

The network in San Diego uses Nortel Networks CDMA2000 1xEV-DO (1X evolution-data optimized) 3G technology, and is powered exclusively by Nortel Networks CDMA core and access solutions. This packet-based network provides users with wireless data at speeds up to 2.0 megabits per second, or about 16 times faster than existing CDMA2000 1X networks. It supports rich applications and virtual private network (VPN) connections, and allows businesses to experience BroadbandAccess as an extension of their corporate local area networks (LAN) or intranets. This allows them to work from any location with the same speed, security, authentication and data protection as if they were working from their offices.

As part of the launch, Verizon Wireless is offering its first BroadbandAccess subscriber device - the Verizon Wireless PC 5220 card. In the future, Verizon Wireless plans to offer additional BroadbandAccess devices, including cards, modems and a wide range of the latest handheld mobile devices.

"We are pleased to work with Nortel Networks to launch our 1xEV-DO wireless network in San Diego," said Bill Stone, vice president of marketing, Verizon Wireless. "Nortel Networks continually delivers innovative technology that enhances our superior network offerings and ultimately helps us deliver value-added services to meet the needs of our customers."

"Nortel Networks is delighted to work with the nation's largest wireless operator in this major achievement," said Steve Slattery, president and general manager, CDMA/TDMA, Wireless Networks, Nortel Networks.

"This is a significant milestone for the wireless industry and the entire North American wireless telecommunications market," Slattery said. "Our CDMA2000 1xEV-DO technology positions Verizon Wireless to offer advanced wireless data applications for consumers and businesses, and to drive new sources of revenue and maximize network investment. Today's launch builds on Nortel Networks recent success in delivering 3G technology to operators around the globe."

Nortel Networks CDMA2000 1xEV-DO solution for Verizon Wireless includes Nortel Networks CDMA Metro Cell radio base stations equipped for 1xEV-DO, Radio Network Controllers, Element Management System and related infrastructure. The CDMA2000 1xEV-DO solution was implemented for Verizon Wireless through an upgrade to their CDMA Metro Cell base stations.

Nortel Networks has been providing wireless equipment to Verizon Wireless and its predecessor companies since 1996. In 2002, Verizon Wireless and Nortel Networks conducted technology trials of 1xEV-DO in San Diego. In September 2003, Nortel Networks announced an expansion and upgrade agreement for Verizon Wireless' nationwide 3G voice and data network. The agreement includes San Diego and other key markets.

A CDMA leader since 1995, Nortel Networks has designed, installed and launched CDMA networks - including more than 35,000 '3G-ready' base stations as of August 31, 2003 - for more than 65 service providers in 17 countries. Nortel Networks is implementing 1xEV-DO with customers around the globe including Asia Pacific Broadband Wireless in Taiwan, PT Wireless Indonesia (WIN) and Vesper in Brazil.

About Verizon Wireless
Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 34.6 million 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.  

About Nortel Networks
Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.  

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 severity and duration of the industry adjustment and continued reductions in spending by our customers; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact on our gross margins and other impacts 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; the dependence on new product development and our ability to predict market demand for particular products; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; the impact of a consolidation of our common shares; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the outcome of our asset and liability review; the future success of our strategic alliances; risks related to our defined benefit plans; the impact of additional valuation allowances for all or a portion of our deferred tax assets required if market conditions further deteriorate or future results of operations are less than expected; an inability of our subsidiaries to provide funding to the respective parent companies; restrictions on our cash as cash collateral if satisfactory arrangements for alternative support for certain obligations are not in place; and the adverse resolution of litigation and intellectual property disputes. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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 Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks.

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