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Ratelindo Selects Nortel Networks to Build Indonesia's First CDMA2000 1X Fixed Wireless Network


JAKARTA, Indonesia - PT Radio Telepon Indonesia (Ratelindo), a leading Indonesian fixed cellular telephone and wireless data operator, has selected Nortel Networks* [NYSE/TSE: NT] to build the country's first CDMA2000 1X third generation (3G) fixed wireless local loop network in Jakarta (Jabotabek). Initial commercial service is planned for Jakarta by the third quarter of 2002.

"The new CDMA wireless local loop network will allow us to meet growing customer demand by significantly increasing network capacity and providing the flexibility to provision new voice and data services rapidly and in response to evolving market requirements," said Virano Nasution, president director, Ratelindo.

"We chose Nortel Networks as our technology provider because of its worldwide leadership in wireless technologies and applications, and its commitment to helping us meet our business needs by rolling out new networks with exceptional speed and efficiency," Nasution said. "This contract builds on our solid global momentum in wireless," said François Lancon, managing director, Nortel Networks ASEAN. "Our wireless solution will position Ratelindo to create market-leading, revenue-generating services."

Nortel Networks wireless local loop solution for Ratelindo will employ CDMA2000 1X wireless technology, rather than copper, to connect customers to the public switched telephone network (PSTN). Base stations serving several hundred fixed wireless customer terminals each will be used to deliver high quality voice, fax, data and Internet access services. The Ratelindo award continues Nortel Networks momentum in the global market for wireless infrastructure.

Nortel Networks has also recently announced: a 10-year frame agreement with T-Mobile International for UMTS networks across Europe; a two-year, estimated US$150 million CDMA2000 3G award from Israel's Pelephone; an agreement with Orange subsidiary Dutchtone for GSM and GPRS equipment and services in The Netherlands; selection by mm02 (subject to execution of definitive agreements) to supply 2.5G and 3G equipment and services across its networks in the UK, Germany, Ireland and The Netherlands; an estimated US$250 million UMTS agreement with Telefonica for Germany and Spain; and an estimated US$500 million award from Cingular Wireless for GSM and GPRS equipment in the United States.

A leader in CDMA since 1995, Nortel Networks has designed, installed and commissioned more than 30,000 base stations - over varying terrain and population densities - for 64 operators in 14 countries. Nortel Networks is also a leader in development, deployment and evolution of the other major air interfaces, including GSM, GPRS, EDGE, UMTS, TDMA and AMPS. Ratelindo (www.ratelindo.co.id) is licensed by the Indonesian Government to operate fixed WLL services in the AMPS A-Band frequencies.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. 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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to make acquisitions and/or 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; 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; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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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