Ford Otosan Powers Auto Plant Communications in Turkey with Nortel IP Solutions; Turkish Automaker Converges Networks Across Three Locations

The new network gives Ford Otosan a highly secure, high-speedinfrastructure supporting all of its manufacturing functions. Thesefunctions range from design and production to business processes andinclude internal communication tools for employees such as IPtelephony, email and video conferencing. Ford Otosan's new networkinfrastructure was able to increase manufacturing productivity andemployee efficiency, enabling 24/7 production due to its seamless andredundant design across all sites.

The network was deployed by Koc Sistem and Merpa, two solutionpartners of Nortel Netas, Nortel's subsidiary in Turkey. Ford Otosanhas three major locations in Turkey -- the manufacturing facility inKocaeli, spare parts warehouse in Kartal and cargo truck plant inEskisehir. The new network serves approximately 2,500 users.

"Reliable and secure communications for our manufacturingoperations is critical to maintaining the production rate of onevehicle per hour, 24 hours a day, seven days a week," said Faik Kuter,IT Manager, Operation & Network, Ford Otosan. "The slightest failurein communications serving any of our three plants would instantlydisrupt our manufacturing and negatively impact our operational costs.With Nortel's depth of experience in converged IP networks, we trustthat we have deployed the most reliable technology on the markettoday."

Cenk Alper, Leader Enterprise Solutions, Nortel Netas, said, "Weworked very hard to understand each element in Ford Otosan's Turkishoperations to ensure the final solution was specially designed to meettheir communication needs. It is a demanding environment that requiresthe kind of high-performance, highly reliable infrastructure thatNortel delivers to its customers around the world."

Ford Otosan's new distributed backbone infrastructure includes anindependently operated and redundant PBX system to take over andre-route any communication in the network in case of an emergency.

The Ford Otosan network includes Nortel Ethernet Routing Switch8600, Ethernet Switch 470, and Communication Server 1000M, as well asCallPilot unified messaging system.

About Ford Otosan

Having activities since 1959, Ford Otosan is present in the allmain segments of the Turkish automobile market with its wide range ofproducts. Providing service to consumers by 66 3S (sale, service andspare parts) and 46 2S (service and spare parts) dealers acrossTurkey, Ford Otosan is the sector leader by the 15% market shareobtained in 2004. Having increased its overall production by 80% in2004 compared to 2003, Ford Otosan exported 139,111 of 206,741vehicles manufactured in 2004. Totally, 255,204 vehicles have beenexported and sold locally. www.ford.com.tr

About Merpa

Having undersigned turn key global projects in voice and datatransmission by its team composed of electronic, computer andcommunication engineers, Merpa Communication constructs the convergedsystems of the future. The company provides products with excellentfeatures by continuously expanding its product range in line with therecently developed technologies and new customer requirements.www.merpa.com.tr

About Koc Sistem

The largest and the oldest information technology company withdomestic capital, Koc Sistem Information and Communication Servicesintend to add value to their shareholders continuously. Capable ofmeeting any requirements of enterprises in information technologiesdomain, the company is the largest system integrator in informationsector in Turkey. Having established strategic partnerships withimportant technology leaders worldwide, Koc Sistem providesunconditioned customer satisfaction thanks to service centers acrossTurkey. www.kocsistem.com.tr

About Nortel

Nortel is a recognized leader in delivering communicationscapabilities that enhance the human experience, ignite and powerglobal commerce, and secure and protect the world's most criticalinformation. Serving both service provider and enterprise customers,Nortel delivers innovative technology solutions encompassingend-to-end broadband, Voice over IP, multimedia services andapplications, and wireless broadband designed to help people solve theworld's greatest challenges. Nortel does business in more than 150countries. For more information, visit Nortel on the Web atwww.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain information included in this press release isforward-looking and is subject to important risks and uncertainties.The results or events predicted in these statements may differmaterially from actual results or events. Factors which could causeresults or events to differ from current expectations include, amongother things: the outcome of regulatory and criminal investigationsand civil litigation actions related to Nortel's restatements and theimpact any resulting legal judgments, settlements, penalties andexpenses could have on Nortel's results of operations, financialcondition and liquidity, and any related potential dilution ofNortel's common shares; the findings of Nortel's independent reviewand implementation of recommended remedial measures; the outcome ofthe ongoing independent review with respect to revenues for specificidentified transactions, which review will have a particular emphasison the underlying conduct that led to the initial recognition of theserevenues; the restatement or revisions of Nortel's previouslyannounced or filed financial results and resulting negative publicity;the existence of material weaknesses in Nortel's internal control overfinancial reporting and the conclusion of Nortel's management andindependent auditor that Nortel's internal control over financialreporting is ineffective, which could continue to impact Nortel'sability to report its results of operations and financial conditionaccurately and in a timely manner; the impact of Nortel's and NNL'sfailure to timely file their financial statements and related periodicreports, including Nortel's inability to access its shelf registrationstatement filed with the United States Securities and ExchangeCommission (SEC); the impact of management changes, including thetermination for cause of Nortel's former CEO, CFO and Controller inApril 2004; the sufficiency of Nortel's restructuring activities,including the work plan announced on August 19, 2004 as updated onSeptember 30, 2004 and December 14, 2004, including the potential forhigher actual costs to be incurred in connection with restructuringactions compared to the estimated costs of such actions;

cautious or reduced spending by Nortel's customers; increasedconsolidation among Nortel's customers and the loss of customers incertain markets; fluctuations in Nortel's operating results andgeneral industry, economic and market conditions and growth rates;fluctuations in Nortel's cash flow, level of outstanding debt andcurrent debt ratings; Nortel's monitoring of the capital markets foropportunities to improve its capital structure and financialflexibility; Nortel's ability to recruit and retain qualifiedemployees; the use of cash collateral to support Nortel's normalcourse business activities; the dependence on Nortel's subsidiariesfor funding; the impact of Nortel's defined benefit plans and deferredtax assets on results of operations and Nortel's cash flow; theadverse resolution of class actions, litigation in the ordinary courseof business, intellectual property disputes and similar matters;Nortel's dependence on new product development and its ability topredict market demand for particular products; Nortel's ability tointegrate the operations and technologies of acquired businesses in aneffective manner; the impact of rapid technological and market change;the impact of price and product competition; barriers to internationalgrowth and global economic conditions, particularly in emergingmarkets and including interest rate and currency exchange ratefluctuations; the impact of rationalization and consolidation in thetelecommunications industry; changes in regulation of the Internet;the impact of the credit risks of Nortel's customers and the impact ofcustomer financing and commitments; general stock market volatility;negative developments associated with Nortel's supply contracts andcontract manufacturing agreements, including as a result of using asole supplier for a key component of certain optical networkssolutions; the impact of Nortel's supply and outsourcing contractsthat contain delivery and installation provisions, which, if not met,could result in the payment of substantial penalties or liquidateddamages; any undetected product defects, errors or failures; thefuture success of Nortel's strategic alliances; and certainrestrictions on how Nortel and its president and chief executiveofficer conduct business.

For additional information with respect to certain of these andother factors, see the most recent Annual Report on Form 10-K andQuarterly Report on Form 10-Q filed by Nortel with the SEC. Unlessotherwise required by applicable securities laws, Nortel disclaims anyintention or obligation to update or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise.

Nortel, the Nortel logo, the Globemark and CallPilot aretrademarks of Nortel Networks.

Use of the terms "partner" and "partnership" does not imply alegal partnership between Nortel and any other party.