Nortel Invests in Sasken 612190

MUMBAI, India -- Nortel (NYSE: NT) (TSX: NT) has invested US$10 million in Sasken Communication Technologies Limited for an undisclosed stake in Sasken's fully diluted equity, the companies announced today.

Nortel and Sasken have also signed an amendment to an existing services agreement under which they will continue to work together to develop new software and deploy Nortel networking solutions.

Sasken, a pioneer in telecom research and development (R&D) outsourcing, has been a key supplier to Nortel since 1991, and is currently focused on supporting Nortel's GSM (Global System for Mobile Communications) digital wireless and enterprise communications solutions. Sasken will also play a major role in training, technical support and other engineering services in Nortel projects in India.

This investment strengthens Nortel's strategic relationship with Sasken and aligns with Nortel's objective to bring greater capabilities to customers in the critical emerging markets of India and the Asia Pacific region.

Sasken plans to use this investment to fuel its growth through acquisitions.

"Nortel has been an important customer of Sasken for the past 15 years," said Rajiv Mody, chairman and chief executive officer, Sasken Communication Technologies Limited. "This investment is a re-affirmation of Nortel's long and close relationship with Sasken. We believe that this investment and the expanded services agreement are key milestones in achieving our vision of becoming India's leading telecommunication solutions provider."

"India is an important market for Nortel," said Brian McFadden, chief research officer, Nortel, "and Sasken has played a key role in Nortel's R&D and market success. Strengthening our relationship with Sasken is an investment in our future, and provides Nortel with a stronger foothold to serve our customers in India and the Asia Pacific region."

"This is another important investment in strengthening our position as a leading player in India," said John Giamatteo, president, Asia Pacific, Nortel. "A close relationship with a leading local supplier like Sasken in one of the world's fastest growing markets will further enhance Nortel's ability to stay competitive in the Indian market and beyond."

Sasken Communication Technologies Ltd.

Nortel Networks Ltd.