LONDON, UNITED KINGDOM -- (Marketwire) -- 07/06/09 -- K&K Active Oy, a value-added distributor of data transfer and telecommunications products, has reached an agreement with LG-Nortel to be its exclusive Ethernet Fiber Access solution sales channel in Finland. LG Nortel is a joint venture of LG Electronics and Nortel(1) (OTCBB: NRTLQ) and K&K Active Oy is part of the Swedish Lagercrantz Group.

The Nortel Ethernet Fiber Access solution, based on Wave Division Multiplexing Passive Optical Network (WDM-PON) technology, will enable K&K to extend its products and service portfolio to address customers interested in next-generation access solutions for residential, business and backhaul services. K&K can now sell one integrated solution for multiple FTTX (Fiber To The 'X') market segments, with residential, business and backhaul applications on a single platform over a foundational infrastructure.

"The coming years will be the real start to Fiber To The Home (FTTH) solutions in Finland," said Harri Raty, product area manager, Optical Solutions, K&K Active Oy. "LG-Nortel WDM-PON systems will significantly strengthen our optical access product portfolio and will immediately enable us to offer end-users sustainable speeds of up to 1 Gigabit/s. LG-Nortel's Ethernet Access WDM-PON technology is a cost-effective FTTH technology that fulfils the requirements set in the Finnish Government's recently published National Broadband Strategy."

Applications such as unified communications, high-definition videoconferencing, IPTV, and high-speed mobile communications significantly boost worker productivity and business efficiency, but they can present challenges for service providers by dramatically increasing the amount of data travelling over their networks.

"Fiber-optic connectivity is essential to meet growing bandwidth demands and unlock new residential and business applications," said Peter MacKinnon, chairman, LG-Nortel. "Working with K&K we will be able to deliver a next-generation access infrastructure to support the national effort to deliver broadband to Finland's businesses and households."

Nortel's Ethernet Access solution, using WDM-PON technology, uses existing optical backbone infrastructure and enables multiple wavelengths to be carried over existing optical fiber. This fiber reuse enables K&K to offer dedicated and symmetrical bandwidths straight to homes and businesses at a fraction of the cost of laying new fiber.

K&K Active Oy is a value-added distributor of data transfer and telecommunications products. Together with its business partners and affiliates, K&K Active Oy aims to provide customers with solutions that enhance their competitive advantage. The K&K product range covers multiservice and optical systems, IP-communication products, radio systems, xDSL and software for broadband provisioning and monitoring.

About LG-Nortel

LG-Nortel is a joint venture of LG Electronics and Nortel. Established in 2005, LG-Nortel provides leading edge telecommunications equipment and network solutions, spanning wired and wireless technologies, to service provider and enterprise customers in Korea and around the world. LG-Nortel is also actively developing next generation solutions for global markets, with over 750 skilled R&D engineers currently focused on wireless broadband technology evolution and the development of powerful new product lines. For more information on LG-Nortel, visit www.lg-nortel.com.

About Nortel

Nortel delivers communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. 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 from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports 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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. LG-Nortel and the LG-Nortel logo are trademarks of LG-Nortel.