FLORIANÓPOLIS, Brazil -- Embratel, Brazil's main longdistance service provider and a subsidiary of Telmex group, has selectedNortel(*) (NYSE/TSX: NT) to upgrade its fixed wireless network to deliver highquality voice service to approximately one million subscribers.

The CDMA2000(*) 1X network expansion will help increase network capacityand coverage to accommodate more voice subscribers and enable superior voicequality for their wireless local loop service known as Livre. As part of thedeployment, Nortel will replace Embratel's existing Livre network in São Pauloand once deployment is complete, Nortel will be Embratel's principal wirelessinfrastructure provider in Brazil for Livre.

"Embratel is striving to provide the most competitive fixed linetelephony at accessible cost and superior quality," said José Formoso, chiefexecutive officer, Embratel. "Nortel's wireless technology will help usmaximize existing spectrum and hardware resources to accommodate subscribergrowth and reduce operational expenditures."

"Nortel's CDMA solutions provide quality, capacity, coverage andperformance, enabling operators like Embratel to increase their advancedservices offerings and bring more efficient and higher speed mobile servicesto subscribers," said Pablo Vazquez, president, Nortel Mexico.

"We are pleased to have been selected as Embratel's sole supplier for theSão Paulo network and we look forward to working with them on delivering acompelling wireless experience to businesses and consumers in the country,"said Martha Bejar, president, Caribbean and Latin America, Nortel.

Nortel's wireless infrastructure being deployed for Embratel includesCDMA2000 1X radio base stations, base station controllers, CDMA Packet MSC andother related equipment.

Embratel Participações S/A

Nortel Networks Ltd.