Telesur Selects Nortel to Modernize Communications Networks in Surinam

    Business Editors/Technology Writers

    PARAMARIBO, Suriname--(BUSINESS WIRE)--April 7, 2005--Telesur, the principal telecommunications service provider in Suriname, has selected Nortel (NYSE:NT)(TSX:NT) to expand and upgrade its nationwide wireline and wireless networks to increase capacity, improve quality of service and enable delivery of a large suite of advanced services.
    "Telesur is making this investment to ensure the quality of the mobile and fixed services we provide to our customers today, as well as to expand our service offerings with advanced applications that will provide added value and functionality for our customers in Suriname," said Iris Struiken-Wijdenbosch, managing director, Telesur.
    Under terms of a recent agreement, Nortel is expanding Telesur's existing wireless network by deploying an end-to-end GSM (Global System for Mobile Communications) and GPRS (General Packet Radio Service) solution including radio base stations and mobile switching equipment.
    The expansion will enable Telesur to improve coverage and offer services like high-speed mobile Web browsing, personal messaging and multimedia applications. The upgraded network is also designed to provide exceptional radio performance and a high level of security. It will also be ready for easy future migration to a third generation (3G) network using Nortel's EDGE (Enhanced Data rate for GSM Evolution) technology.
    The agreement also includes deployment of Nortel's Optical Multiservice Edge (OME) 6500 platform, which will initially quadruple the capacity of Telesur's backbone transmission network while converging both wireless and wireline traffic on the same broadband infrastructure. By simplifying its network, OME 6500 will position Telesur to drive down operational costs. OME 6500 is also DWDM (dense wavelength division multiplexing)-ready, providing the flexibility to easily scale to higher bandwidth when necessary to accommodate customer growth and additional advanced voice and data services.
    Telesur will also use Nortel's Broadband STP (signaling transfer point) to help expand its SS7 (Signaling System 7) networking capacity, facilitating delivery and reducing the operating costs associated with providing various service options.
    "We are committed to working with regional operators like Telesur to build reliable networks that can deliver the most advanced, high-quality services to end-users, while also helping them reduce operational costs," said Norberto Milan, managing director, Caribbean region, Nortel. "With Nortel's proven end-to-end wireless, wireline and optical solutions, Telesur will be able to swiftly address current and future coverage requirements and roll out sophisticated service options designed to greatly enhance its customers' communications experience."
    Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN) and is the only end-to-end provider of all next generation wireless solutions.
    Deployed in more than 1,000 customer networks in 65 countries, Nortel's end-to-end optical networking portfolio includes next generation SONET/SDH, optical switching, wave division multiplexing and Optical Ethernet products. Nortel has deployed more than 280,000 optical network elements globally. Nortel was the market share leader in DWDM transport for the fifth year in a row as of year end 2004, according to the Dell'Oro Group.

    About Telesur

    Telesur is the government owned telecommunication operator of Suriname and is facing the introduction of competition in the near future. Telesur provides all possible telecommunication services to its customers. For more information visit Telesur on the Web at www.telesur.sr.

    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 April 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 and consolidation 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 and Quarterly Report on Form 10-Q 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.

--30--MJR/da*

CONTACT: Nortel Ferngene Kook, 954-858-7101 email: fkook@nortel.com or Jamie Moody, 972-684-7167 email: moodyjam@nortel.com or Telesur Gerrit Belfor, + 597-474-242 email: gerrit.belfor@telesur.sr

KEYWORD: TEXAS INTERNATIONAL LATIN AMERICA INDUSTRY KEYWORD: HARDWARE TELECOMMUNICATIONS SOFTWARE NETWORKING MARKETING AGREEMENTS SOURCE: Nortel

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