Nortel Rides the Rails

VILNIUS, Lithuania -- Lithuanian Railways has chosen a Nortel(1) (TSX: NT)(NYSE: NT) wireless communications network solution to enhance its railway communications and ensure compatibility of the Lithuanian national railway with international railway standards. Nortel´s partner, Belam, is acting as the local partner for the implementation and construction of the project which will be completed in 2010.

The EUR 50.5 million (EUR 59.6 million including VAT) contract includes the implementation of a GSM-R radio communication system along more than 1,563 kilometres (approximately 88% of the country´s rail network) of Lithuania´s rail routes. This is the first GSM-R network implementation in the Baltic region. The project is partially funded by the European Community Cohesion Fund for European regional development.

European Union member Lithuania is the first of the Baltic countries to deploy a GSM-R solution.

Nortel´s GSM-R solution is highly flexible in terms of supporting signalling systems from different vendors, one of the most important factors for communications interoperability. The solution for Lithuanian Railways can also support the European Train Control System (ETCS) which is a signalling, control and train protection system designed to replace incompatible safety systems in European Railways and is aimed at enhancing the safety and security of rail users on trains that cross country borders.

"Nortel is helping Lithuanian Railways transition to EC railway standards in order to provide a high-speed dependable communication network that makes our railways in Lithuania faster and safer and more reliable than before," said Laisvydas Rudzianskas GSM-R project manager, Lithuanian Railways.

In a separate release:

BEIJING -- China´s Ministry of Railways (MOR) has gained powerful communications and train management capabilities for its busy system after selecting GSM-R mobile communications railway technology from Nortel(1) (TSX: NT)(NYSE: NT). The highly secure wireless network provides new communications capabilities between trains and ground staff along the 510 km high-speed passenger line between Zhengzhou and Xi´an.

With fast trains traveling at speeds of up to 350 km/hr, conventional mobile networks are not reliable enough to depend on for critical communications. Purpose-built for such applications, the Nortel GSM-R solution enables drivers, dispatchers, shunting team members, train engineers, station controllers and other railway employees to reach each other anywhere along the line, even at full speed. Features such as group calls, connections based on the train´s position, prioritization of calls during emergencies, and connection to employees by function rather than name all ensure the rapid response necessary for safe and efficient train operation.

In May 2006, Nortel signed an agreement with MOR to deploy GSM-R to seven of MOR´s 19 switching centers, at Xi´an, Chengdu, Harbin, Nanchang, Lanzhou, Kunming and Urumqi. As a significant component of the European Rail Traffic Management System (ERMTS), GSM-R reliably transports voice, data, and advanced European Train Control System-2 (ETCS-2) signaling data even at high speeds. This will enable MOR to safely maximize traffic on the Zhengzhou-Xi´an line, a significant rail route that is expected to promote trade and economic exchanges between eastern and western China. The Nortel GSM-R solution deployment also marks the first commercial operation of this kind on a dedicated passenger line (DPL) running up to 350 km/hr on the ETCS-2 in China.

"With its massive population and distributed manufacturing base, high-speed rail transportation has long been essential to China´s economic success," said Jackson Wu, president, Greater China, Nortel. "Nortel was an early provider of GSM-R solutions, applying our Business Made Simple commitment to dozens of successful deployments on some of the world´s most complex rail networks. The Ministry of Railways´ decision to embrace GSM-R brings this critical rail link in line with global standards and ensures Chinese passengers will benefit from train services running at peak efficiency and safety."

Nortel Networks Ltd.