BSNL Selects Nortel for GSM Expansion Deal In Excess of US$100m to Meet India´s Soaring Demand for Wireless Services

Reliability and Speed of Roll Out Key to Delivering Connectivity to New Wave of Subscribers

New Delhi,India, (PresseBox) - Nortel(1) (TSX: NT)(NYSE: NT) has won an agreement with India s BSNL (Bharat Sanchar Nigam Ltd.), valued at over US$100 million, to put mobile connectivity in the hands of millions of new subscribers in the southern area of the country.

BSNL, India s largest telecoms service provider, with over 20 million cellular subscribers, is actively growing its network reach and capacity to meet increased demand for mobile telephony services across the country. The company chose Nortel to support this southern GSM network expansion with a very aggressive roll-out schedule, based on Nortel s previous track record in helping BSNL establish the widest reach of any wireless network provider in India. With this selection, BSNL can build on, and maximize its existing network investment and rapidly extend mobile services to new subscribers.

"Since 2004, Nortel has worked closely with BSNL in rolling out mobile service to some seven million customers in the southern and eastern parts of India while ensuring the network is cost-effective and implemented according to BSNL s aggressive timelines," said Hitesh Lokhandwala, managing director, Nortel India. "This new contract award reflects BSNL s confidence in Nortel to achieve these targets, and is further proof that in one of the most competitive, dynamic and fastest-growing markets in the world, Nortel s solutions meet our customers requirements."

"India represents an enormous opportunity for Nortel in the carrier space, with its consistently high growth rates and increasingly mobile population," said Richard Lowe, president, Carrier Networks, Nortel. "We have redesigned our GSM portfolio with this kind of opportunity in mind, making our solution much more cost competitive, without compromising the performance, capacity and coverage for which Nortel is renowned. Nortel offers an immediate solution for today s high-growth markets, and a clear migration path to 4G as operators across India eye the evolution of their networks to offer higher-bandwidth services in the near future."

Nortel s deployment of the BSNL network expansion is already underway and is expected to be completed towards the end of 2008.

As India s increasingly mobile population reaps the benefits of enhanced connectivity, the country s needs for broadband wireless access to address the challenges of the hyperconnected world - where anything that can be connected to the network will be - are also developing rapidly. Nortel is actively involved in trials and deployments in India of various next generation technologies. Nortel is working with operators in India and around the world to simplify networking requirements that turn the challenges of Hyperconnectivity into opportunities.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

NORTEL

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel´s technologies are designed to help eliminate today´s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel´s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel´s Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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