NEW ORLEANS -- Nortel (NYSE:NT)(TSX:NT), a global telecommunications leader in wireless infrastructure and advanced third generation (3G) technologies, and LG Electronics (KSE:06657), a global leader in the next generation mobile industry, have announced plans to work together to jointly develop and market WiMAX products.

This follows the January 2005 announcement of a Memorandum of Understanding (MoU) between Nortel and LG Electronics to establish a joint venture for providing high quality, leading edge telecommunications equipment and networking solutions to Korea and other markets globally.

The companies' global WiMAX strategy, announced today at CTIA Wireless 2005, the world's largest wireless tradeshow, marries the power of Nortel's carrier packet networking and OFDM/MIMO (Orthogonal Frequency Division Multiplexing/Multiple In, Multiple Out) leadership with LG Electronics' mobile telecommunications and digital convergence expertise.

"This leverages the combined strengths of Nortel and LG Electronics to provide end-to-end solutions and investment in innovative technologies that will position our customers for greater success," said Dave Murashige, vice president, Carrier Networks, Nortel. "We are focused on the continuing evolution of wireless broadband and its increasing role in communications networks."

"Nortel's and LG Electronics' strengths will combine powerfully to deliver the future WiMAX vision," said Jae Ryung Lee, executive vice president, Networks, LG Electronics. "With the advent of 802.16e, mobility solutions for broadband wireless will become possible, and Nortel is an acknowledged leader in networking technologies that will be married with WiMAX access to enable that vision."

LG Electronics Inc.

Nortel Networks Ltd.