TAIPEI, Taiwan, December 5 /PRNewswire/ --

- Creating National Showcase for County-Wide Broadband Wireless Access

TAIPEI, Taiwan, December 5 /PRNewswire/ --

A new Mobile WiMAX network in the northeastern county of Yilan, built by Chunghwa Telecom in association with Nortel(x) (NYSE/TSX: NT) and eASPNet, is to become the first fully integrated broadband wireless network driven by a local government under the Mobile-Taiwan (M-Taiwan) project.

Radically impacting the daily lives of Yilan residents, visitors and businesses - and positioning the district as a national showcase for ubiquitous wireless broadband services - the WiMAX infrastructure will enable broadband wireless access to such services as M-Learning, M-Commerce , M-Tour as well as video surveillance and IPTV services.

"This initiative demonstrates the significance of Mobile WiMAX technology in advancing the government's rapidly evolving M-Taiwan project ," said Chun-Ming Hsieh, vice president, Chunghwa Telecom. "Nortel is an established leader in Taiwan's telecommunications industry and we look forward to working together in extending the same integrated wireless capabilities to other areas of Taiwan to help bolster the competitiveness of local economies."

"The people of Yilan will now be able to take the Internet with them wherever they go, and enjoy high-speed mobile access using virtually any wireless-enabled device," said Jackson Wu, president, Greater China, Nortel . "This is a momentous step forward for the M-Taiwan project."

Nortel is providing Chunghwa Telecom with next generation Mobile WiMAX base stations, based on the IEEE 802.16e standard, incorporating Nortel's patented MIMO antenna technology. Nortel's MIMO is a key capability enabling the provision of the most demanding real-time applications such as VoIP and voice over WiMAX.

Nortel will also provide an Access Service Network Gateway, customer premises equipment, and network management capabilities, as well as network integration and optimization services provided by Nortel Global Services. Nortel ranked number one in the global markets for service provider softswitches and gateways for the first half of 2006, according to Synergy Research Group. Nortel's Global Services portfolio offers a full range of network application, implementation, and support services for end-to-end multi-vendor networks.

Taiwan is playing a pivotal role in Nortel's WiMAX development. Nortel recently signed an agreement with Chunghwa Telecom to deploy a WiMAX solution in the operator's experimental park to create an environment for testing WiMAX and integrating the technology with the Nortel Wireless Mesh Network solution deployed in Taipei and Kaohsiung as part of the government's M-Taiwan initiative. In addition, Nortel is deploying a WiMAX trial system at the National Taiwan University campus, and has also established a Center of Excellence for Devices in Taipei.

Nortel is the only WiMAX vendor with products in virtually all mobile technologies currently available across both public and wireless networks. Nortel also owns dozens of patents in the technologies underlying the WiMAX standard, and the company's eight years of work in OFDM/MIMO technology has culminated with much of its patented technology being accepted as the basis for the global WiMAX industry standard.

TAIPEI, Taiwan, December 5 /PRNewswire/ --

About M-Taiwan

TAIPEI, Taiwan, December 5 /PRNewswire/ --

The M-Taiwan Initiative is one of Taiwan's top 10 new infrastructure programs. It engages local governments and private sector partners in constructing an island-wide wireless broadband environment to provide people with convenient Mobile WiMAX services and applications. The vision of the M-Taiwan Initiative is to develop an infrastructure providing wireless Internet access for 8 million subscribers and to provide broadband internet coverage to 80% of the population in urban areas. For more information, please visit www.pwlan.org.tw.

TAIPEI, Taiwan, December 5 /PRNewswire/ --

About Nortel

TAIPEI, Taiwan, December 5 /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.

TAIPEI, Taiwan, December 5 /PRNewswire/ --

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 approval of its proposed class action settlement; 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-Lucent; 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 support 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 support facility; 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 the 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 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.

TAIPEI, Taiwan, December 5 /PRNewswire/ --

(x) Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

For further information: Jane Lu, +886-2366-7815, janelu@nortel.com; Jamie Moody, (+972)-684-7167, moodyjam@nortel.com