MADRID, Spain -- TP Ferro, a Spanish and French railwayconsortium, will use railway communications technology from Nortel(*)(NYSE/TSX: NT) for the new 44 km high-speed Figueres - Perpignan linecurrently being built between Spain and France.

The GSM-R network will also support vital uninterrupted communicationsthroughout a sophisticated eight kilometer tunnel across the Pyrenees,providing a new rail alternative for passengers and merchandise.

Expected to open in early 2009, the new Figueres-Perpignan line will bepart of the trans-European transport network initiative promoted by theEuropean Union. It will be integrated into the Southwest Europe High-SpeedTrain Axis. As part of its common transport policy, the EU has adoptedlegislation to pave the way for gradual establishment of an integratedEuropean railway area, both legally and technically. This involves thedevelopment and implementation of Technical Specifications forInteroperability including communications for which GSM-R plays an importantrole.

"Nortel's GSM-R solution allows the complete integration of vital railcommunications between the GSM-R networks of the French Réseau Ferré de France(RFF) and the Spanish Administrador de Infraestructuras Ferroviarias (ADIF),"said Victor Sanz, project director, IFP Figueres-Perpignan. "Interoperabilityof communications is a key element of the trans-European rail system that isdesigned to reduce travel times across international borders significantly forall kind of railway users."

"GSM-R provides railway operators and infrastructure owners with improvedvoice and data services tailored for railway operations, supporting high-speedtrain operation of up to 500 kilometers per hour," said Michel Clement,president Southern Europe and Africa, Nortel. "GSM-R improves operationalcommunication and helps to advance staff performance and employee safetythrough safe and uninterrupted communication in day-to-day operation."

Nortel Networks Ltd.