Telefonica Moviles Espa?a (TME) a retenu Nortel comme principal fournisseur multiservices pour son r?seau UMTS de troisi?me g?n?ration

La nouvelle infrastructure multiservices renforcera l’efficacité du réseau de TME et améliorera sa fourniture de services.

Business Editors/Technology Writers

MADRID--(BUSINESS WIRE)-- 20 juin 2005--Telefonica Moviles España (TME) fait de Nortel (NYSE:NT)(TSX:NT) son principal fournisseur dans le cadre d’un contrat pluriannuel portant sur l’extension du réseau dorsal multiservices qui servira de support aux services de troisième génération (3G) de TME.

(BW)(TX-NORTEL)(NT)(NT.TO) Telefonica Moviles Espana Selects Nortel as Main Multiservice Core Supplier for 3G UMTS Network; New Multiservice Network to Improve Efficiency, Service Delivery

Business Editors/Technology Writers

MADRID--(BUSINESS WIRE)--June 20, 2005--Telefonica Moviles Espana (TME) has selected Nortel (NYSE:NT)(TSX:NT) as the main supplier for expansion of the core multiservice network that will support its third generation (3G) service offering under a multi-year contract

This expanded network will enable TME to efficiently support increased voice and data traffic on its 3G Universal Mobile Telecommunications System (UMTS) network, while reducing operational expenses through consolidation of disparate networks; Voice calls, Internet browsing and data applications on TME customers' 3G handsets will be consolidated across an ATM-based (Asynchronous Transfer Mode) network using Nortel's Multiservice Switch portfolio. As part of the agreement, Nortel is also providing professional services for TME, including installation, commissioning, technical support, repair and return, and full, first line maintenance services

"Nortel's multiservice solutions provide the network reliability and scalability required to ensure the high availability of 3G services," said Casimir Alonso, president, Nortel Iberia.

"This new contract award for Telefonica Moviles network expansion demonstrates our continued market momentum in wireless packet networking solutions." Nortel has supplied multiservice switching solutions for the ATM core network of Telefonica Moviles in Spain since 2000.

Consisting of Multiservice Switch (MSS) 15000 and MSS 7400 series platforms, the core network already includes more than 200 Nortel MSS nodes. With this new network expansion, Nortel will provide MSS equipment at the metro edge of the network, as well as act as sole supplier for the multiservice core; Nortel was the global market share leader in multiservice switching for 15 consecutive quarters as of year-end 2004, according to Synergy Research Group. With more than 45,000 systems shipped to over 1,500 customer networks, Nortel's Multiservice Switching family has proven field experience in delivering carrier-grade reliability and service flexibility for mission critical enterprise and service provider networks worldwide.

Nortel's MSS portfolio is deployed with more than 25 major wireless operators, and is delivering proven reliability for wireless packet networking solutions across GSM/GPRS/UMTS, TDMA and CDMA/CDMA2000 technologies

About Telefonica Moviles Espana

Telefonica Moviles Espana (TME), the wireless operator of Telefonica Moviles Group in Spain, had more than 19 million customers at end of March 2005. TME provides a full range of services and an applications portfolio that uses the latest mobile technologies, including UMTS.

Telefonica Moviles is one of the world's leading mobile carriers and the leading operator in the Latin American and Portuguese markets.

TME has operations in 16 countries and including the customers gained through its acquisition of BellSouth in Latin America had more than 81.4 million customers worldwide at the end of March 2005.

TME's shares are quoted on the Madrid and New York Stock Exchanges, under the ticker symbol TEM. Movistar is the commercial brand for all the companies of the Telefonica Moviles Group all around the world, except in Morocco and Brazil.

For more information, please see: www.empresa.movistar.com.

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; 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.

CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).

CONTACT:

Nortel

Jose Luis Menoyo, +34 915 643 442 email: [email protected]

or

Ben Roome, +44 1628 43 3113 email: [email protected]

or

Jaime Moody, 972-684-7167 email: [email protected]

KEYWORD: TEXAS SPAIN INTERNATIONAL EUROPE

INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING HARDWARE COMPUTERS/ELECTRONICS MARKETING AGREEMENTS

SOURCE: Nortel