AmRest Deploys IP Telephony from Nortel for Pizza Hut and KFC Restaura

    Business Editors/High-Tech Writers

    WARSAW, Poland--(BUSINESS WIRE)--Jan. 26, 2005--American Restaurants (AmRest), the owner of 114 Pizza Hut and KFC restaurants in Poland, has deployed an estimated US$1 million in IP (Internet Protocol) telephony solutions from Nortel (NYSE:NT)(TSX:NT). The implementation was realized by Telekomunikacja Polska.
    This implementation has allowed AmRest to transform its traditional telephone lines into convergent network solutions, enabling it to benefit from new telecommunications services and lower operational costs, and to simplify network management. IP technology also lowers infrastructure costs by converging data, voice and video, which can then be transferred through a single, fast network in packets. There is no need for separate networks for voice and data transfer.
    "Our aim was to create a modern system for voice and data transfer that would connect more than 100 restaurants across Poland," said Tomasz Suchowierski, development manager, AmRest. "The key requirements presented to the hardware provider and project designer were maximum reliability, data security and lower network operations costs. Nortel was chosen after a number of tests that allowed us to evaluate products of selected manufacturers in specific network applications."
    Telekomunikacja Polska provided the infrastructure and implemented the network for AmRest. Telekomunikacja Polska is the only carrier in Poland capable of assuring access to all Pizza Hut and KFC restaurants throughout the country.
    "We have been working with Telekomunikacja Polska for a long time now and we have carried out several projects together," said Marek Switajewski, president, Nortel Polska. "This project is especially interesting to both companies since it is one of the first implementations of this kind in Poland."
    The AmRest network includes Nortel's Business Communication Manager (BCM) for telephone applications, as well as voice and data IP routing in Frame Relay networks. It also includes Nortel Communication Server 1000M, which provides services and applications related to voice transfer and IP telephony while the signaling server supports the routing plan and connections for IP networks.

    About AmRest

    American Restaurants Sp. z o.o. (AmRest) owns 114 Pizza Hut and KFC restaurants, as well as Iceland ice cream concept in Poland, and 28 restaurants in the Czech Republic. AmRests' headquarters is located in Wroclaw. The company employs 5,000 people. It offers high quality meals prepared from fresh products strictly in accordance with original recipes. AmRest was created in 2000 as a result of the merge of two companies - Tricon Restaurants Poland and American Restaurants Services Sp. z o.o. The company is a direct licensee of YUM! Brands, based in Dallas. YUM! Brands International restaurants is the leading world restaurant corporation, owning 30,000 restaurants in more than 90 countries around the world. For more information please visit www.kfc.com.pl and www.pizzahut.com.pl.

    About Telekomunikacja Polska

    Telekomunikacja Polska (TP) is one of the largest carriers in Poland who has over 11 million clients. It is also the leader in data transfer, satellite communications and Internet access. Telekomunikacja Polska is part of France Telecom, a global telecommunications group. For more information on TP please visit www.tp.pl.

    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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. 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 information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.
    Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in August 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;
    cautious or reduced spending by Nortel's customers; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel's customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement, which is currently not available, of Nortel's forward purchase contracts; the impact of Nortel's supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; and the future success of Nortel's strategic alliances.
    For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K filed by Nortel 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.

    Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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CONTACT: Nortel Marta Wasilewska, +48 22 537 39 20 email: mwasil@nortel.com or Angelika Kempf, +44 1628 43 7340 email: angelika.kempf@nortel.com or Pat Cooper, 425-450-7523 email: pat.cooper@nortel.com

KEYWORD: TEXAS POLAND INTERNATIONAL EUROPE INDUSTRY KEYWORD: RESTAURANTS TELECOMMUNICATIONS NETWORKING HARDWARE COMPUTERS/ELECTRONICS MARKETING AGREEMENTS SOURCE: Nortel

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