TAIPEI, Taiwan -- Chunghwa Telecom has selected next generation network (NGN) voice over IP (Internet Protocol) and multimedia solutions from Nortel Networks* [NYSE/TSX: NT] to help transform its network to a packet-based infrastructure, and to position itself to drive new revenue opportunities. Nortel Networks was awarded a contract to upgrade the network under Chunghwa Telecom's Class 5 Packet Telephony Service System tender. Full network deployment is expected to be completed by September 2004.

"Nortel Networks carrier-grade voice over IP solution will allow us to packetize our voice networks while cost-efficiently utilizing and integrating existing network equipment and systems," said Iee-Ray Wei, senior managing director, Corporate Planning Department, Chunghwa Telecom. "This upgrade will be the first step in fully evolving our networks to NGNs, and will create a platform for future deployment of broadband voice, data, video and multimedia services to business and residential customers across Taiwan."

"Nortel Networks was selected for its proven record of NGN deployment and network reliability, as well as its ability to help service providers reduce operational costs and implement new revenue streams while fully leveraging existing network investments," said Jackson Wu, managing director, Taiwan, Nortel Networks. "We are the first vendor globally to deploy networks in all voice over IP market segments -- including local, long distance, wireless and cable -- and this Chunghwa Telecom win further reinforces Nortel Networks leading position in the NGN marketplace."

Chunghwa Telecom's NGN network will be based on Nortel Networks Succession* Communication Server (CS) 2000-Compact superclass softswitch and Nortel Networks Multimedia Communication Server (MCS) 5200, which positions service providers to drive new revenue-generating services and lower operating costs.

Chunghwa Telecom Co. Ltd.

Nortel Networks Corp.