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KTF Launches Nationwide Ultra-High Speed Wireless Network with LG-Nortel

4 July 2006

r> SEOUL, Korea, July 2 - KTF, one of South Korea's leading cellular providers, has launched a next-generation ultra-high speed 3.5G wireless network in Seoul and cities across South Korea using wireless broadband technology from LG-Nortel(xx), a joint venture of LG Electronics and Nortel(x) (NYSE/TSX: NT). The network supports advanced handset capabilities including high-definition (HD) video, video chatting, messaging and remote monitoring.


The new 3.5 G HSDPA, handset-based service is being launched with two handset models in the initial deployment - including the first HSDPA phone from LG Electronics, the LG-KH1000. A further four to five handsets are planned later in the year. KTF's new service is branded 'WorldPhone View', a name representing 'the world at your fingertips' through access to video and collaborative multimedia applications.


KTF's HSDPA mobile communications will be rolled out in 50 cities across South Korea beginning June 30. LG-Nortel is the primary network supplier and is the exclusive vendor for 34 cities including the vast Seoul metropolitan area which alone accounts for almost 50 percent of the total population of Korea. It is estimated that 80 percent of the country's population will be able to access the service by the end of August 2006. A further 34 cities will be added by year-end, raising that figure to over 90 percent of the population, according to KTF estimates.


"The launch of our 'WorldPhone View' HSDPA service is a key component of KTF's portfolio of next-generation mobile services," said Won-Jin Park, executive vice president, KTF. "We chose LG-Nortel as the primary supplier for our UMTS/HSDPA network based on its strong technology credentials and our existing relationship. LG-Nortel has successfully implemented a world-class network which allows us to implement groundbreaking services as we enhance the mobile communications experience for all our customers."


"LG Nortel, with the strong support of our parent companies Nortel and LGE, has implemented a secure, reliable, high-speed network to support the innovative range of services and applications KTF is launching to its customers," said Peter MacKinnon, chairman of the board, LG-Nortel. "Korea leads the world in wireless broadband and LG-Nortel plays an integral role in ensuring the continuation of that success. We will work closely with KTF on the evolution of their network to support higher uplink speeds and ever-more sophisticated service requirements in the future."


A key differentiator of HSDPA compared to current technologies is its ability to support high-speed, real-time HD video content. 'WorldPhone View' users will be able to access a variety of new services, including video SMS, video ringtone services, video chatting, video ad messaging and video remote monitoring - as well as high-quality video telephony. High-speed broadband capabilities will also enhance music downloads and high-volume multimedia collaboration and set the foundation for more sophisticated online gaming applications. The two HSDPA handsets being launched will also support universal integrated circuit (IC) cards, allowing access to secure transactions for transportation, membership, mobile banking and credit card services.


KTF's HSDPA wireless network can deliver services at download speeds up to 14.4Mbps. The introduction of LG-Nortel's HSUPA upgrade, planned for early 2007, will increase uplink speeds to 5.8 Mbps, improving performance for services requiring the high-speed upload of data.


Demonstrating its technology leadership, Nortel achieved the industry's first HSDPA mobile call in January 2005 and Nortel and LGE completed the first live test calls using a commercial handset solution for HSDPA in March 2005. More recently, in February 2006, Nortel achieved approval for the introduction of high speed OFDM and MIMO packet access, in line with its technology HSOPA, into the Global 3GPP LTE standards. This paves the way for 'multiplay' services including voice, high-speed interactive applications including large data transfer, feature-rich IPTV, IMS enabled services, all with full mobility.


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. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at http://www.nortel.com. For the latest Nortel news, visit http://www.nortel.com/news.


About LG-Nortel


LG-Nortel is a joint venture between LG Electronics and Nortel, officially launched in November 3, 2005. LG-Nortel offers advanced telecommunications and network solutions in wired and wireless telecommunications, optical and enterprise areas for Korean and global customers. Its main divisions are Carrier Networks and Enterprise Networks businesses. Prior to the establishment of the joint venture, LG Electronics and Nortel had a close collaboration and were selected as network suppliers for KTF and SK Telecom's HSDPA/WCDMA networks. The company's sales and marketing departments are in the company's GS Tower building in Kangnam-gu, Seoul and its R&D center in Anyang, Geonggi province. For more information on LG-Nortel, visit http://www.LG-NORTEL.com.


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. Further, actual results or events could differ materially from those contemplated in forward- looking statements as a result of the following (i) risks and uncertainties relating to Nortel's restatements and related matters including: Nortel's most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel's existing equity positions resulting from the finalization and approval of its proposed class action settlement, or if such proposed class action settlement is not finalized, any larger settlements or awards of damages in respect of such class actions; any unsuccessful remediation of Nortel's material weaknesses in internal control over financial reporting resulting in an inability to report Nortel's results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel's remedial measures; Nortel's inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel's below investment grade credit rating and any further adverse effect on its credit rating due to Nortel's restatements of its financial statements; any adverse affect on Nortel's business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel's restatements; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; (ii) risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; any material and adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel's operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel's supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; additional valuation allowances for all or a portion of its deferred tax assets; Nortel's failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel's failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: the impact of Nortel's most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of credit facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues and the provisions of its credit facilities; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel's publicly traded securities, or any future share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel's common shares. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10- K/A, Quarterly Report 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.


(x) Nortel, the Nortel logo and the Globemark are trademarks of Nortel


Networks.


(xx) LG-Nortel and the LG-Nortel logo are trademarks of LG-Nortel.

Source: prnewswire


All trademarks and copyrighted information contained herein are the property of their respective owners.


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