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Nortel Networks

Cities, Governments Go Mobile With Nortel Municipal Wireless Solution

Minneapolis, Minnesota (ots/PRNewswire)

- New Deployments Fuel Economic Development, Lower Operational
Costs and  Increase Public Safety
Nortel(x) (NYSE/TSX: NT) today announced new municipal wireless
deployments that demonstrate the Company's strength in helping
governments  embrace broadband wireless as a strategic way to deliver
efficient services  that keep communities safe and productive, as
well as economically  competitive.
From rural to urban deployments, Nortel's Municipal Wireless
Solution is  being used by several new customers in North America,
including Carlsbad, New  Mexico; Occoquan Wireless in Occoquan,
Virginia and Ronco Communications in  Niagara County, New York.
Nortel combines a comprehensive portfolio of Wireless Mesh,
Wireless LAN  and WiMAX technologies with a full suite of Nortel
Global Services, giving  customers the solutions they need to design,
deploy, support and evolve  municipal wireless networks. Nortel's
experience designing, launching and  installing hundreds of public
and private wireless networks around the world  helps customers
offset risk in building privately-funded networks. For
municipalities interested in partnering with private sector
companies, Nortel  can help connect customers with operators that
best meet the economic  development and public safety needs of the
community.
With a population of 26,000, Carlsbad, New Mexico is on the brink
of  massive and rapid economic growth. The city's close proximity to
California  makes it an attractive location for high tech and
hospitality businesses, as  well as an ideal travel destination for
thousands of tourists each year. To  compliment the success of the
growing community, the Carlsbad Department of  Development worked
with local service provider Windstream Communications to  deploy
Nortel's Wireless Mesh Network solution to create a wireless hot zone
covering the commercial downtown area. The new network enables
residents and  visitors to use laptops or wireless handheld devices
to access the public  Internet and helps the City of Carlsbad expand
its economic opportunities by  attracting and retaining new
businesses.
"With an influx of economic activity and new growth, we needed a
broadband wireless service that would further Carlsbad's ability to
compete  with other urban areas for new business while at the same
time maintaining  the charm of its small town roots, and Nortel gave
us the perfect solution,"  said Robert Detweiler, executive director,
Carlsbad Department of  Development. "Our long term vision is to
expand wireless broadband access  throughout the city and into many
of the new complexes being built along the  Pecos River. As our
community grows, so too will our wireless network-it is  the backbone
of our economic development."
The picturesque town of Occoquan, Virginia is situated 20 miles
south of  Washington, D.C. on the banks of the Occoquan River and has
gained notoriety  as one of America's most haunted towns. Occoquan
Wireless, a franchise of  Annapolis Wireless, is using Nortel's
Wireless Mesh Network solution to  deliver broadband service in
Occoquan for merchants, residents and the  thousands of tourists who
visit the town each year. By offering sponsorships  and advertising
on its splash page to local businesses, Occoquan Wireless is  able to
provide wireless broadband coverage free of charge across Occoquan's
waterfront Historic District which features more than 100 antique,
art and  craft shops and restaurants, as well as a bustling marina.
"One of our most important goals is to improve conditions for
merchants  and visitors in our historic district, and wireless
broadband access is an  important step in that direction," said
Earnie Porta, mayor of Occoquan.
Nortel is showcasing its Municipal Wireless Solution at
Muniwireless 2006  Minneapolis, October 23-24, demonstrating how
broadband wireless deployments  can help governments lower
operational costs, enhance the level of municipal  government
services and increase economic development and public safety for
communities.
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.
Certain statements in this press release may contain words such as
"could", "expects", "may", "anticipates", "believes", "intends",
"estimates",  "targets", "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 finalization and approval of its
proposed class action settlement,  or if such class action settlement
is not finalized, 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;
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
UMTS access business to Alcatel; 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 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.

Contact:

For further information: Christie Blake, +1-978-288-8439,
christbl@nortel.com; Greta Brown, +44-1628-432968, gretab@nortel.com

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