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3G/HSPA

Nortel Wins Embratel Deal

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

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

"Embratel is striving to provide the most competitive fixed line telephony at accessible cost and superior quality," said José Formoso, chief executive officer, Embratel. "Nortel's wireless technology will help us maximize existing spectrum and hardware resources to accommodate subscriber growth and reduce operational expenditures."

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

"We are pleased to have been selected as Embratel's sole supplier for the São Paulo network and we look forward to working with them on delivering a compelling 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 includes CDMA2000 1X radio base stations, base station controllers, CDMA Packet MSC and other related equipment.

Embratel Participações S/A

Nortel Networks Ltd.

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