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Sendai Television Ensures Emergency Communications with Nortel Solution; New Sendai Headquarters Secures Continuous Communications for 2.4 Million Viewers
[May 16, 2005]

Sendai Television Ensures Emergency Communications with Nortel Solution; New Sendai Headquarters Secures Continuous Communications for 2.4 Million Viewers

TOKYO --(Business Wire)-- May 16, 2005 -- Sendai Television, a key broadcaster in north Japan, is deploying a switching solution from Nortel (NYSE:NT)(TSX:NT) at its new headquarters to power a highly secure network that ensures continuous communications to its 2.4 million viewers during such emergencies as earthquakes.

The Nortel solution also supports Sendai's internal voice over Internet Protocol (VoIP) services and mission-critical communications, including network management. The new Sendai Television center will be fully equipped for terrestrial digital broadcast services across Miyagi, Iwate and Fukushima prefectures in December 2005.

"Television plays a significant role in keeping the public informed as events unfold and this is particularly important in emergency situations," said Nick Vreugdenhil, country manager, Japan, Nortel. "Nortel's Ethernet routing and switching technology will give Sendai Television uninterrupted broadcasting capabilities as well as provide industry-leading network security, availability and Quality of Service (QoS) for the communications network serving Sendai Television's new headquarters. This industry leading solution has also been implemented by the world's largest and most important stock exchanges, supporting billions of transactions, to secure and protect the world's most valuable information."

The Nortel solution for Sendai Television includes the resilient and intelligent Nortel Ethernet Routing Switch 8600 to provide Terabit switching and secure end-to-end transport for all types of application data, and Nortel Ethernet Routing Switch 5510 and Ethernet Switch 470 to provide high-density Gigabit connectivity to user desktops.

Continuous transmission of mission-critical communications during emergency situations is ensured by Nortel's interoperable Resilient Terabit Cluster network design to ensure sub-second failover in case of any failure in the network. Resiliency is ensured by removing complexity from the network and management becomes simple, saving on operational expenses. Advanced security is ensured by IEEE802.1x/EAP-based authentication.

About Sendai Television

Sendai Television is a private television broadcasting station located in the city of Sendai, in Japan's Miyagi prefecture. In addition to providing a broad range of broadcasting services, Sendai Television also focuses on commercial events such as the JCB Classic Sendai men's golf tournament it holds each year. Established in 1962, Sendai Television has branch offices in Tokyo and Osaka, and is a key local station of the national Fuji Television Network. Sendai Television begins digital broadcasting in December 2005.

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 For the latest Nortel news, visit

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 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 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 or early settlement, which is currently not available, 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.

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