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Nortel Networks

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.
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.
(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

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

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