Nortel Wins Spanish Rail Deal

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

The GSM-R network will also support vital uninterrupted communications throughout 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 be part of the trans-European transport network initiative promoted by the European Union. It will be integrated into the Southwest Europe High-Speed Train Axis. As part of its common transport policy, the EU has adopted legislation to pave the way for gradual establishment of an integrated European railway area, both legally and technically. This involves the development and implementation of Technical Specifications for Interoperability including communications for which GSM-R plays an important role.

"Nortel's GSM-R solution allows the complete integration of vital rail communications 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. "Interoperability of communications is a key element of the trans-European rail system that is designed to reduce travel times across international borders significantly for all kind of railway users."

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

Nortel Networks Ltd.

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