HaiTel Expands Wireless Network in Haiti with Nortel Technology; Count

    Business Editors/Technology Writers

    PORT-AU-PRINCE, Haiti--(BUSINESS WIRE)--April 12, 2005--Haiti Telecommunications International S.A. (HaiTel), a wireless voice and Internet service provider in Haiti, is expanding and enhancing its wireless network with Nortel (NYSE:NT)(TSX:NT) CDMA wireless infrastructure solutions. The expanded network is expected to significantly increase capacity and extend the operator's coverage area to reach new subscribers around the nation, as well as deliver high-speed data services that enhance the end-user experience.
    HaiTel currently provides pre-paid, fixed-wireless and mobile services enabled by Nortel CDMA wireless solutions. These services are available to residential and business customers in Haiti's most populated coastal cities, as well as in the central part of the country where agriculture is the main source of income.
    Haiti has one of the lowest tele-densities in the Western hemisphere. Availability of affordable wireless communications through HaiTel creates new opportunities for many residents to communicate with family members across Haiti or abroad. HaiTel services also enable farmers, entrepreneurs and small business owners to communicate with the market place and more effectively run their operations.
    HaiTel is deploying base station controllers, switching platforms and other related core infrastructure products from Nortel to add capacity to its existing CDMA2000 network and upgrade to CDMA2000 1X, delivering what is expected to be Haiti's first 3G network.
    The upgrades are expected to be completed by mid-2005 and will enable more than three times the network's current capacity, allowing the operator to easily accommodate new subscribers. HaiTel will also be able to roll out 3G mobile data services like high-speed Internet access, e-mails with attachments and image downloading, giving its subscribers access to essential business tools that can help them be even more successful.
    In addition to this deployment, Nortel is also donating a number of computers to several public schools in HaiTel's coverage area. HaiTel will install the equipment and provide internet connectivity.
    "Through all the recent turbulence in our country, HaiTel has kept its promise of bringing high-quality wireless services to the people of Haiti," said Franck N. Cine, director general of HaiTel. "With the help of Nortel's industry-leading technology, we will continue to keep that promise by expanding our network to reach new subscribers and bring our customers those sophisticated services that will help improve the way they live and work."
    In some areas that can not sustain the costs of fixed wireline infrastructure, wireless technology is bringing telephone services to people for the first time. This can result in substantial economic development benefits.
    "We are extremely proud to be working with HaiTel on this project, as it reinforces our commitment to help enhance the human experience as well as igniting and powering commerce around the world," said Martha Bejar, president of Nortel in the Caribbean and Latin America. "We will leverage our extensive CDMA expertise and experience in deploying advanced wireless networks in the Caribbean and around the world to help HaiTel deliver new, revenue-generating services with the flexibility and scalability to accommodate future growth."
    Nortel has designed, deployed and launched more than 300 wireless networks in more than 70 countries around the world. Nortel was the first industry supplier to have wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and EV-DO, UMTS and WLAN), and is the only end-to-end supplier of all new generation wireless solutions.
    Nortel has been working with service providers and enterprises in the Caribbean for over 35 years, building advanced communication infrastructures. Nortel is deploying 3G wireless networks with several operators in the Caribbean and Latin American region, including Centennial (Puerto Rico and the Dominican Republic); Telefonica (Peru); VIVO (Brazil); TSTT (Trinidad and Tobago); Smartcom (Chile) and Speednet (Belize).

    About HaiTel

    HaiTel S.A., a telecommunications company, represents one of the most important investments in Haiti and an essential instrument for the development of the country. Since the official opening in March 1999, HaiTel has added over 150,000 customers to the network. HaiTel's success translates beyond the number of subscribers, but also to a team of qualified professionals with the same objectives: to make HaiTel the pride of Haiti and the largest telecommunications company in the Caribbean. For more information, visit HaiTel on the Web at www.haitelonline.com

    About Nortel

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

    Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.
    Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;
    cautious or reduced spending by Nortel's customers; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel's customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement, which is currently not available, of Nortel's forward purchase contracts; the impact of Nortel's supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; and the future success of Nortel's strategic alliances.
    For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel 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.

    Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

--30--MJR/da*

CONTACT: Nortel Ferngene Kook, 954-858-7101 email: fkook@nortel.com or HaiTel S.A. John Compton, 509-510-1100 email: jcompton@haitelonline.net

KEYWORD: TEXAS INTERNATIONAL LATIN AMERICA INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING HARDWARE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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