Nortel Wins in PakistanNortel Wins in Pakistan

ISLAMABAD, Pakistan -- Pak Telecom Mobile Limited (PTML) has awarded Nortel Networks (NYSE:NT)(TSX:NT) a contract estimated at US$56 million to implement a major expansion of PTML's national Ufone GSM 900 digital wireless network. This is the second major expansion by Nortel Networks since building the original network for PTML in 2001, and it is expected to raise Ufone's capacity to 1.3 million subscribers.

Under this agreement, PTML plans to expand and upgrade GSM radio base stations, switching, packet core and other related equipment from Nortel Networks to support its wireless network. This network is characterized by near-wireline voice quality, high security, exceptional radio performance, and leading-edge wireless voice, data and fax features, demonstrating Nortel Networks GSM leadership across core and access. As part of this expansion, PTML will also be deploying Nortel Networks Packet Voice Gateway (PVG), a packet voice solution delivering toll quality voice on Nortel Networks Passport multiservice data switching platform.

"Nortel Networks GSM wireless technology plays an important role in helping us achieve our objective in becoming the leading cellular brand in the country," said Arshad Khan, president and chief executive officer, Ufone. "Through their global expertise in deploying GSM and GPRS networks, we are confident that Nortel Networks will continue to deliver a high-quality infrastructure in the deployment for Phase 3 of our network expansion."

"Nortel Networks is proud to contribute to the evolution of Pakistan's telecommunications infrastructure through our long-standing relationship with the country's first Pakistani-owned wireless network," said Kamal Ahmed, managing director, Pakistan, Nortel Networks.

In addition to the initial network build and two network expansions for PTML, Nortel Networks has also provided Pakistan Telecommunications Corporation Ltd (PTCL), PTML's parent company, with a long haul optical backbone to provide enhanced bandwidth capacity for voice and data customers. Nortel Networks has also built an ATM backbone to support the wireless network of two of Pakistan's other major cellular operators.

To build on its growing presence in Pakistan and as a sign of its confidence in the local market, Nortel Networks recently opened a new office in Islamabad. The opening was officiated by Canadian Minister of Industries Allan Rock.

"This expanded presence demonstrates our commitment to work with PTML, PTCL and other service providers and enterprises to leverage advanced communications technologies to drive business success and overall economic growth in Pakistan," Ahmed said.

Nortel Networks Corp.

Pakistan Telecom Mobile Ltd. (Ufone)