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Nortel, Pride Bring Fast, 'Triple Play' Services to Nizhnevartovsk

Moscow, Russia (ots/PRNewswire)

-  Metro Ethernet Solution Ten Times Faster than Previous
Technologies
www.nortel.com
MOSCOW, Russia, June 26 /PRNewswire/ --
Pride, an alternative telecommunications services provider in West
Siberia, has launched 'triple play' voice, video and multimedia
services in  Nizhnevartovsk City at ten times the speed of previous
technologies using a  Nortel(x) (NYSE/TSX: NT) solution. The newly
deployed Metro Ethernet  network for Pride is also making available
services such as IPTV with video  on demand; VoIP; and high-speed
Internet access.
For homes in Nizhnevartovsk (population 249,000) this is the first
time  that such high-speed Internet services have been offered. The
Pride  'Ethernet to the Home' service offers speeds up to 100 Mbps
for residential  and business subscribers.
Pride plans to use its new high-speed communication capabilities
to  build a subscriber base of at least 30 percent of
Nizhnevartovsk's  population by the end of 2006. Future plans involve
extending the network  and offering triple play services in other
areas of West Siberia such as  the city of Tyumen which has a
population of over 538,000.
"Pride selected Nortel because its technology helped us create a
single  network infrastructure for delivering reliable and
high-quality voice,  video and data services that sharpen our
competitive edge in an important  Russian regional market," said
Viktor Lukashev, general manager Pride LLC.  "The built- in
flexibility for network expansion also allows us to easily  and cost-
effectively introduce services and expand the Pride subscriber  base
across the Khanty-Mansiysk and Tyumen regions of West Siberia."
"Pride sets a good example for how to maintain a competitive edge
in  Russia's regional telecommunications space using a Nortel Metro
Ethernet  solution. The solution has transformed Pride's existing
network to deliver  faster and more efficient new services," said
Sorin Lupu, president,  Eastern region, Nortel EMEA. "The Nortel high
availability pledge for Metro  Ethernet networks also reassured Pride
that these new services can be  delivered with confidence."
Pride's Metro Ethernet network was sold and integrated with the
support  of Nortel's Moscow-based Sales Partner Step Logic. Nortel
and Step Logic  have worked together in the Russian market since the
mid-1990s. "The Pride  triple play network is the latest successful
result in our ongoing  collaboration with Nortel in Russia," said
Andrey Kudriavtsev, general  manager, Step Logic.
The Pride triple play network is based on Nortel's Metro Ethernet
portfolio, including the Metro Ethernet Routing Switch 8600 and the
Metro  Ethernet Service Unit 1800 which provides a cost-effective
platform purpose - built for the edge of provider networks.
MOSCOW, Russia, June 26 /PRNewswire/ --
About Nortel
MOSCOW, Russia, June 26 /PRNewswire/ --
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.
MOSCOW, Russia, June 26 /PRNewswire/ --
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 finalization and approval of its
proposed class action settlement,  or if such proposed 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;
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 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.
MOSCOW, Russia, June 26 /PRNewswire/ --
(x)Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.
MOSCOW, Russia, June 26 /PRNewswire/ --
Use of the terms "partner" and "partnership" does not imply a
legal partnership between Nortel and any other party.

Contact:

For further information: Greta Brown, +44-(0)1628-432968,
gretab@nortel.com; Bo Gowan, +972-685-8278, bogowan@nortel.com

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