( BW)(NORTEL)(NT)(NT.TO) KTF Selects LGE, Nortel as Primary Vendors
for Ultra High-Speed Wireless Service in Korea

    Business Editors/Technology Editors

    SEOUL, Korea--(BUSINESS WIRE)--Sept. 6, 2005--

    Initial Phase of Mobile Broadband Experience Set for Seoul, 16
                     Other Cities by December 2005

    KTF, one of Korea's leading cellular providers, has selected LG
Electronics (LGE) and Nortel (NYSE:NT) (TSX:NT) to power its new ultra
high-speed broadband wireless communication service throughout Korea's
major metropolitan areas including Seoul.
    Nortel will provide HSDPA-based access equipment, while LGE will
furnish the UMTS core network solution for this service. This is the
first collaborative win for LGE and Nortel since announcement of the
LG-Nortel joint venture in August 2005.
    The 3G UMTS solution with HSDPA will allow KTF subscribers to
access new wireless multimedia services such as high-speed music
transfers, real-time DVD-quality video, gaming applications,
videoconferencing and split-second multimedia collaboration. KTF's
HSDPA wireless network will be capable of delivering services at
download speeds up to 14.4 Mbps - 30 times faster than today's
commercially deployed wireless networks.
    Beginning with Seoul, KTF plans to roll out its HSDPA-ready
broadband wireless network to 17 cities by December 2005, and to
extend it to an additional 45 cities by June 2006.
    "Our selection of LGE and Nortel as the UMTS/HSDPA broadband
wireless service supplier is based on the trust we have in Nortel's
global strength in wireless technologies and strong support
capabilities through the LG-Nortel joint venture," said Won-Jin Park,
executive vice president, KTF. "We chose the Nortel solution because
we believe it will enable us to bring KTF subscribers new and
unprecedented levels of wireless speed and functionality and help us
to maintain our position as a global leader in mobile broadband."
    "Nortel has actively developed and tested HSDPA technologies, and
our selection together with LGE by KTF confirms our networking
strengths in emerging broadband wireless technologies," said Peter
MacKinnon, president, GSM/UMTS, Nortel. "HSDPA is the first step in
the evolution beyond 3G, and we look forward to working with KTF to
help realize the full potential this exciting new technology can
deliver."
    Korea has the highest broadband penetration in the world and is an
early adopter of cutting-edge mobile technology.
    Nortel was the first to make HSDPA drive calls in January 2005. In
March 2005, Nortel and LG Electronics completed the industry's first
live test calls using a commercial handset solution for HSDPA. In June
2005, Nortel became the first wireless network supplier to complete
the TL9000 registration standard for Quality Management System
Requirements and Measurements across its end-to-end portfolio of
hardware, software and services for HDSPA, UMTS and GSM wireless
infrastructure solutions. This quality certification milestone
underscores the breadth of Nortel's UMTS solutions, which include
solutions across all probable frequency ranges and multiple base
station configurations.
    Nortel has worked with a number of wireless operators on HSDPA
trials and deployments in 2005, including SOFTBANK Group's BB Mobile,
mmO2, Orange (at 3GSM World Congress 2005 in Cannes, France), Vodafone
(at CeBIT 2005 in Hanover, Germany), Partner Communications in Israel,
and mobilkom austria.
    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, and is the only end-to-end provider of all next
generation wireless solutions, as well as edge and core network
solutions for IP, ATM and optical transport.
    LGE and Nortel executed a joint venture agreement on August 17,
2005 to establish a joint venture company in the area of
telecommunication infrastructure businesses. The joint venture company
is scheduled to be established within this year, subject to
fulfillment of certain conditions provided in the agreement.

    About LG Electronics

    LG Electronics is a global leader in providing cutting-edge
convergent electronics, information and communications products
designed to meet the diverse needs of fast-changing consumers. With
consolidated sales of US$37.7 billion and overseas sales of US$32.6
billion (86 percent of total sales), LG Electronics employs more than
70,000 employees in 76 subsidiaries located in 39 countries and
operates four business units including Mobile Communications, Digital
Appliance, Digital Display and Digital Media. LG Electronics Mobile
Communications Company is the world's leading manufacturer of WCDMA
(UMTS), CDMA and GSM handsets, and the fastest growing manufacturer of
mobile phones worldwide. The company provides a total range of wired
and wireless solutions, and is rapidly establishing a global presence
as it cultivates international market share in 3G handsets. For more
information please visit www.lge.com.(a)

    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, and any related
potential dilution of Nortel's common shares; 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 control over financial reporting and the conclusion of
Nortel's management and independent auditor that Nortel's internal
control over financial reporting is ineffective, which could continue
to impact Nortel's ability to report its results of operations and
financial condition accurately and in a timely manner; the impact of
Nortel's and NNL's failure to timely file their financial statements
and related periodic reports, including 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 Nortel's and NNL's public filings; 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 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 Nortel's customers; increased
consolidation among Nortel's customers and the loss of customers in
certain markets; 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 monitoring of the capital markets for
opportunities to improve its capital structure and financial
flexibility; 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 of Nortel's
forward purchase contracts; negative developments associated with
Nortel's 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 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; any undetected product
defects, errors or failures; 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.

    (a) This is a 3rd party link as described in our Web linking
practices.

    --30--BD/da*

    CONTACT: Nortel
             Mi-Jeong Han, +822 3707 3969
             email: mhan@nortel.com
             or
             Ben Roome, +44 1628 43 3113
             email: benroome@nortel.com
             or
             Jamie Moody, 972-684-7167
             email: moodyjam@nortel.com