Sierra Wireless, Nortel Complete Broadband Wireless Calls; Collaborati

    Business Editors/Technology Editors

    CHATEAUFORT, France--(BUSINESS WIRE)--Feb. 3, 2005--Nortel (NYSE:NT) (TSX:NT) and Sierra Wireless (Nasdaq:SWIR) (TSX:SW) are collaborating to jointly test and market solutions using High Speed Downlink Packet Access (HSDPA), an emerging broadband wireless technology. The companies have completed an initial series of live test calls, including the industry's first using a data card product slated for commercial release.
    The companies completed the live test calls using Sierra Wireless AirCard(R) 850 wireless wide area network cards and commercial UMTS network equipment from Nortel. The calls were made from a laptop computer in a moving automobile with connection speeds averaging 800 kilobits per second (with peak data rates in excess of 1 megabit per second).
    Broadband services demonstrated included high-resolution interactive gaming, multimedia music tracks, DVD-quality film and video, 'push-to-watch' services and access to large e-mail attachments -- at speeds more than three times faster than today's commercial next generation networks.
    "A tested, interoperable HSDPA solution allows network operators to upgrade their networks to support true broadband speeds with confidence," said Jason Cohenour, chief operating officer, Sierra Wireless. "Sierra Wireless is committed to providing our customers with the most advanced 3G solutions in the industry, and we are pleased to work with Nortel to test and refine our HSDPA products to offer the best possible customer experience."
    "Nortel has established a legacy in innovation and will continue to push the envelope in delivering faster and more efficient wireless capabilities with industry leaders like Sierra Wireless," said Peter MacKinnon, president, GSM/UMTS, Nortel. "Broadband technologies like HSDPA enable operators to squeeze the most out of their existing Nortel UMTS infrastructure investments while dramatically enhancing the end user experience."
    Nortel recently announced plans for a major Pan-European HSDPA network deployment with mmO2 and is working with a number of other leading global operators on HSDPA trials and deployments in 2005. Commercial field trials with the Sierra Wireless AirCard 850 are expected to begin in 2005.
    HSDPA is a migration technology for the UMTS wireless standard used by leading wireless operators across Europe, Japan and North America to deliver voice and data services. HSDPA boosts network capacity to carry up to three times as much data traffic and up to twice as many wireless users per cell site compared to today's UMTS networks. By making more efficient use of the existing network and boosting throughput, HSDPA is designed to significantly reduce operating costs while delivering a better end-user experience.
    The latest addition to Sierra Wireless' award-winning AirCard product line, the AirCard 850 utilizes the 2100 MHz UMTS frequency band and is targeted primarily for use in Europe. The card will also be compatible with EDGE and GSM/GPRS networks on all four GSM frequency bands (850, 900, 1800, and 1900 MHz), for worldwide use in areas where a UMTS network connection is not available. Commercial availability of the AirCard 850 wireless network card is expected in the second half of 2005.
    The broadband calls were completed in and around Nortel's Wireless Center of Excellence in Chateaufort, France using commercially-available UMTS Base Transceiver stations. Nortel's equipment is designed to be HSDPA-ready and to cost-effectively upgrade to support HSDPA through a simple software installation.
    Nortel has designed, installed and launched more than 300 wireless networks in over 50 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies and is the only end-to-end provider of all next generation wireless solutions.

    About Sierra Wireless

    Sierra Wireless is a leader in delivering highly differentiated wireless solutions that enable our customers to improve their productivity and lifestyle. Sierra Wireless develops and markets the AirCard, the industry-leading wireless PC card line for portable computers; embedded modules for OEM wireless applications; the MP line of rugged vehicle-mounted connectivity solutions; and Voq, a line of mobile phones with easy-to-use, secure software solutions for mobile professionals. For more information about Sierra Wireless please visit www.sierrawireless.com.
    This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply conditions, channel and end customer demand conditions, revenues, gross margins, operating expenses, profits, and other expectations, intentions, and plans contained in this press release that are not historical fact. Sierra Wireless' expectations regarding future revenues and earnings depend in part upon our ability to successfully develop, manufacture, and supply products that we do not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.

    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 August 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 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.

    "AirCard" is a registered trademark of Sierra Wireless. "Voq Professional Phone" is a trademark of Sierra Wireless, Inc. Other product or service names mentioned herein may be the trademarks of their respective owners.
    Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

--30--AWG/na*

CONTACT: Nortel Jay Barta, 972-685-2381 email: jbarta@nortel.com or Ben Roome, +44 1628 43 3113 benroome@nortel.com www.nortel.com or Sierra Wireless Sharlene Myers, 604-232-1445 smyers@sierrawireless.com

KEYWORD: TEXAS FRANCE INTERNATIONAL CANADA EUROPE INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING HARDWARE SOFTWARE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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