Microcell Picks Nortel for Core Network

MONTREAL -- Microcell Solutions Inc., a wholly owned subsidiary of Microcell Telecommunications Inc. (TSX:MT), today announced that it has chosen Nortel Networks (NYSE:NT)(TSX:NT) as its exclusive supplier for GSM (Global System for Mobile communications) and UMTS (Universal Mobile Telecommunications System) core wireless network equipment until December 31, 2006 under an amendment to a supply agreement signed in December 2001. This amendment represents a value of approximately US$50 million (CDN$70 million).

The amendment gives Nortel Networks exclusivity for provisioning GSM MSC (Mobile Switching Centre), HLR (Home Location Register) and call server products. It will also allow deployment of a 'live' third generation (3G) wireless network, enabling a service 'showcase' in Montreal using technology based on the UMTS standard.

"The agreement allows us to unify and simplify our core infrastructure, providing us with increased network efficiency," said Alain Rheaume, president and chief operating officer, Microcell Solutions. "This will help us deploy new services more rapidly and at lower cost in the future. In addition, it will provide us with an opportunity to test and learn about third generation services at minimal cost."

"This builds on our seven-year relationship with Microcell," said Pascal Debon, president, Wireless Networks, Nortel Networks. "We will continue to help position Microcell to drive new revenue opportunities by leveraging existing technology investments and delivering data offerings that end-users want."

Microcell Telecommunications Inc.

Nortel Networks Corp.