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China Mobile Xinjiang Chooses Nortel for Multi-Vendor Wireless Network Optimization

Announcement posted by Nortel 16 Sep 2005

Under terms of the agreement, Nortel is providing continuous performance assessment to help improve quality and reduce costs for the multi-vendor GSM/GPRS network in the Yili and Bazhou prefectures of Chinas vast northwestern Xinjiang Region.
Covering more than 1.6 million square kilometers and accounting for one-sixth of Chinas total area, Xinjiang Mobiles geographic coverage area is the largest of any GSM/GPRS network in the China Mobile family of provincial and regional operators.
Building on a network optimization project completed earlier in 2005, the new project has been expanded to include the entire multi-vendor environment. The optimization service includes network planning, performance monitoring, technical support, and on-site training and certification of Xinjiang Mobile personnel.
Ensuring our Xinjiang switching and network infrastructure continuously performs at peak levels is vital to delivering high quality services to our subscribers, said Bai Zhigang, general manager, Xinjiang Mobile. As a world leader in GSM technology,
Nortel provides a suite of services that not only supports the activities of our own on-site network operations personnel, but also allows us to maintain and improve service levels while reducing costs.
Network quality and reliability are vital factors in providing anytime, anywhere availability of advanced mobile services, said Henry So, vice president, China, Nortel. This network optimization project will help Xinjiang Mobile to enhance network performance and to address the rapidly evolving requirements of GSM/GPRS subscribers in this important market.
Nortels selection as preferred supplier for optimization of this multi-vendor network reflects confidence in our broad experience in network optimization, and in our ability to meet the most stringent customer demands for achieving optimal network performance, So said.
A key component of the comprehensive Nortel Global Services portfolio (www.nortel.com/globalservices), Wireless RF (Radio Frequency) Optimization Services are designed to help customers realize the full value of their networks by streamlining network performance, improving network coverage, increasing subscriber service quality, and improving time-to-market for new subscriber services. Nortel Wireless RF Optimization Services include network analysis, assessment and recommendation for optimal network capacity and coverage. These services contribute to a more rapid return on investment by lowering overhead and operating expenses, resolving network capacity inefficiencies, and helping diminish the need for new hardware.
Since 2001, Nortel has implemented five expansions to Xinjiang Mobiles GSM 900 digital cellular network, increasing subscriber capacity by 600,000 to more than one million. Nortel has also provided Xinjiang Mobile with software upgrades to support Advanced Intelligent Network functionality and to increase subscriber capacity.
About Nortel
Nortel is a recognised leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the worlds 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 worlds 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 Nortels restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortels results of operations, financial condition and liquidity, and any related potential dilution of Nortels common shares; the findings of Nortels 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 Nortels previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortels internal control over financial reporting and the conclusion of Nortels management and independent auditor that Nortels internal control over financial reporting is ineffective, which could continue to impact Nortels ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortels and NNLs failure to timely file their financial statements and related periodic reports, including Nortels 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 Nortels and NNLs public filings; the impact of management changes, including the termination for cause of Nortels former CEO, CFO and Controller in April 2004; the sufficiency of Nortels restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 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 Nortels customers; increased consolidation among Nortels customers and the loss of customers in certain markets; fluctuations in Nortels operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortels cash flow, level of outstanding debt and current debt ratings; Nortels monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortels ability to recruit and retain qualified employees; the use of cash collateral to support Nortels normal course business activities; the dependence on Nortels subsidiaries for funding; the impact of Nortels defined benefit plans and deferred tax assets on results of operations and Nortels cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortels dependence on new product development and its ability to predict market demand for particular products; Nortels 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 Nortels customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date of Nortels forward purchase contracts; negative developments associated with Nortels supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortels 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; any undetected product defects, errors or failures; and the future success of Nortels 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.
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*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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