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Nortel Networks

First Digital Wireless Communications System for African Railway Network

Paris (ots/PRNewswire)

- Nortel to Provide GSM-R to Algerian SNTF to Improve Efficiency
and Safety
The Algerian Railways operator SNTF (Société Nationale des
Transports Ferroviaires) has selected Nortel(x) (NYSE/TSX: NT) for
the first phase of SNTF's national GSM-R project to provide a new
wireless communication system that aims to enhance emergency
procedures, improve operational efficiency, increase safety and
reduce the overall cost of its operations. Nortel will deploy a GSM
for Railways (GSM-R) network that will make SNTF the first African
railway operator to adopt the new global GSM-R standard.
The new system will allow train drivers, station controllers and
other railway employees to communicate with each other instantly and
at any time, either individually or as separate groups. In the first
phase of SNTF's GSM-R project awarded to Nortel, the network will be
deployed along the El Gourzi - Touggourt line in Eastern Algeria.
"The international adopted GSM-R standard is a key component to
upgrading the Algerian railway communication infrastructure. It is
part of a much larger railway infrastructure project, including the
construction of new conventional and high speed lines, upgrades of
signalling systems and other railway infrastructure," says Ali
Leulmi, central director of Infrastructures , SNTF. "As a world
leader in GSM-R, Nortel ensures for this first phase along the El
Gourzi - Touggourt line we are equipping our railway service with the
most advanced communication technologies."
"Nortel has been challenged by SNTF to provide for this first
phase of SNTF project a solution that matches the growing need for
communication in a fast expanding network," explains Michel Clement,
president Southern Europe and Africa, Nortel. "This contract is a
result of Nortel's long term commitment to the Algerian market and
our role as a major telecom player in Africa with over 20 years in
the region."
Nortel will provide design and engineering services for SNTF's
GSM-R network from the Nortel Global Services portfolio. Our local
channel partner, SNEF Algeria, will supply construction, installation
and commissioning support. "SNEF and Nortel share the same commitment
to enhancing network quality and reducing the overall cost of
operations," said Vincent Pratlong, Algeria operations director,
SNEF. "Our local experts will work closely with the Algerian railway
SNTF to realise the first GSM-R network on the continent."
With this new contract win, Nortel is the first supplier deploying
GSM-R networks in the three continents of Europe, Asia and Africa.
These include among other networks national deployments in France for
RFF, in Great Britain for Network Rail, and in Germany for Deutsche
Bahn. Nortel supplied as well the high-speed line between Rome and
Naples, Italy for SIRTI. Nortel is also deploying a GSM-R network for
the world's highest rail line, the Tibet-Qinghai high-speed line in
China.
Nortel has been a pioneer in the GSM-R standards process since
1992, and has worked with UIC (Union Internationale des Chemins de
Fer) and ETSI (European Telecommunications Standards Institute).
Nortel supplied equipment for the MORANE (Mobile Radio for Railways
Networks in Europe) trial and was a major contributor to the EIRENE
(European Integrated Railway radio Enhanced Network) GSM-R standard.
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 world's most critical
information. Our next-generation technologies, for both service
providers and enterprises, span access and core networks, support
multimedia and business-critical applications, and help eliminate
today's barriers to efficiency, speed and performance by simplifying
networks and connecting people with information. 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 statements in this press release may contain words such as
"could", "expects", "may", "anticipates", "believes", "intends",
"estimates", "targets", "envisions", "seeks" and other similar
language and are considered forward-looking statements or information
under applicable securities legislation. These statements are based
on Nortel's current expectations, estimates, forecasts and
projections about the operating environment, economies and markets in
which Nortel operates. These statements are subject to important
assumptions, risks and uncertainties, which are difficult to predict
and the actual outcome may be materially different. Further, actual
results or events could differ materially from those contemplated in
forward-looking statements as a result of the following (i) risks and
uncertainties relating to Nortel's restatements and related matters
including: Nortel's most recent restatement and two previous
restatements of its financial statements and related events; the
negative impact on Nortel and NNL of their most recent restatement
and delay in filing their financial statements and related periodic
reports; legal judgments, fines, penalties or settlements, or any
substantial regulatory fines or other penalties or sanctions, related
to the ongoing regulatory and criminal investigations of Nortel in
the US and Canada; any significant pending civil litigation actions
not encompassed by Nortel's proposed class action settlement; any
substantial cash payment and/or significant dilution of Nortel's
existing equity positions resulting from the finalisation and
approval of its proposed class action settlement, or if such proposed
class action settlement is not finalised, any larger settlements or
awards of damages in respect of such class actions; any unsuccessful
remediation of Nortel's material weaknesses in internal control over
financial reporting resulting in an inability to report Nortel's
results of operations and financial condition accurately and in a
timely manner; the time required to implement Nortel's remedial
measures; Nortel's inability to access, in its current form, its
shelf registration filed with the United States Securities and
Exchange Commission (SEC), and Nortel's below investment grade credit
rating and any further adverse effect on its credit rating due to
Nortel's restatements of its financial statements; any adverse affect
on Nortel's business and market price of its publicly traded
securities arising from continuing negative publicity related to
Nortel's restatements; Nortel's potential inability to attract or
retain the personnel necessary to achieve its business objectives;
any breach by Nortel of the continued listing requirements of the
NYSE or TSX causing the NYSE and/or the TSX to commence suspension or
delisting procedures; (ii) risks and uncertainties relating to
Nortel's business including: yearly and quarterly fluctuations of
Nortel's operating results; reduced demand and pricing pressures for
its products due to global economic conditions, significant
competition, competitive pricing practice, cautious capital spending
by customers, increased industry consolidation, rapidly changing
technologies, evolving industry standards, frequent new product
introductions and short product life cycles, and other trends and
industry characteristics affecting the telecommunications industry;
the sufficiency of recently announced restructuring actions,
including the potential for higher actual costs to be incurred in
connection with these restructuring actions compared to the estimated
costs of such actions and the ability to achieve the targeted cost
savings and reductions of Nortel's unfunded pension liability
deficit; any material and adverse affects on Nortel's performance if
its expectations regarding market demand for particular products
prove to be wrong or because of certain barriers in its efforts to
expand internationally; any reduction in Nortel's operating results
and any related volatility in the market price of its publicly traded
securities arising from any decline in its gross margin, or
fluctuations in foreign currency exchange rates; any negative
developments associated with Nortel's supply contract and contract
manufacturing agreements including as a result of using a sole
supplier for key optical networking solutions components, and any
defects or errors in Nortel's current or planned products; any
negative impact to Nortel of its failure to achieve its business
transformation objectives; additional valuation allowances for all or
a portion of its deferred tax assets; Nortel's failure to protect its
intellectual property rights, or any adverse judgments or settlements
arising out of disputes regarding intellectual property; changes in
regulation of the Internet and/or other aspects of the industry;
Nortel's failure to successfully operate or integrate its strategic
acquisitions, or failure to consummate or succeed with its strategic
alliances; any negative effect of Nortel's failure to evolve
adequately its financial and managerial control and reporting systems
and processes, manage and grow its business, or create an effective
risk management strategy; and (iii) risks and uncertainties relating
to Nortel's liquidity, financing arrangements and capital including:
the impact of Nortel's most recent restatement and two previous
restatements of its financial statements; any inability of Nortel to
manage cash flow fluctuations to fund working capital requirements or
achieve its business objectives in a timely manner or obtain
additional sources of funding; high levels of debt, limitations on
Nortel capitalising on business opportunities because of credit
facility covenants, or on obtaining additional secured debt pursuant
to the provisions of indentures governing certain of Nortel's public
debt issues and the provisions of its credit facilities; any increase
of restricted cash requirements for Nortel if it is unable to secure
alternative support for obligations arising from certain normal
course business activities, or any inability of Nortel's subsidiaries
to provide it with sufficient funding; any negative effect to Nortel
of the need to make larger defined benefit plans contributions in the
future or exposure to customer credit risks or inability of customers
to fulfil payment obligations under customer financing arrangements;
any negative impact on Nortel's ability to make future acquisitions,
raise capital, issue debt and retain employees arising from stock
price volatility and further declines in the market price of Nortel's
publicly traded securities, or any future share consolidation
resulting in a lower total market capitalisation or adverse effect on
the liquidity of Nortel's common shares. For additional information
with respect to certain of these and other factors, see Nortel's
Annual Report on Form 10-K/A, Quarterly Report on Form 10-Q and other
securities filings 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.
(x) Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.
Use of the terms "partner" and "partnership" does not imply a
legal partnership between Nortel and any other party.

Contact:

For further information: Ben Roome, +44-1628-433113,
Benroome@nortel.com; Isabelle Tadmoury, +33-1-69-55-12-91,
Tadmoury@nortel.com

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