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Siemens TS Deploys Nortel Networks Railway Communications Solution for Deutsche Bahn

URL(s): www.nortelnetworks.com


Europe's First Commercial GSM-R Network Serves High-Speed Frankfurt-to-Cologne Route

Frankfurt-to-Cologne Route FRANKFURT, Germany - Siemens Transportation Systems (Siemens TS) has deployed Europe's first commercial GSM Railway (GSM-R) communications network - using a complete radio and infrastructure solution from Nortel Networks* [NYSE/TSX: NT] - to serve Deutsche Bahn's new "InterCity Express" high-speed train route between Frankfurt and Cologne.

Recently inaugurated by Deutsche Bahn AG Chief Executive Officer Hartmut Mehdorn, the InterCity Express offers 76-minute service between these two important economic sectors on trains travelling at speeds up to 300 kilometres per hour.

The GSM-R network - including 56 radio base stations along the 177-kilometre Frankfurt-to-Cologne route - provides integrated voice and data communications between conductors and crew, dispatchers, operation managers, and train stations. Plans call for addition of maintenance, motor vehicle and operational communications as well.

This deployment extends a relationship that began in 1999 with an agreement between DB Telematic (formerly Mannesmann Arcor) and Nortel Networks for supply of a GSM-R network - expected to be the world's largest - for Deutsche Bahn. Currently being deployed across Germany and Europe, this network is positioning Deutsche Bahn to communicate with other European networks; to increase reliability, safety and operational efficiency; and to reduce operating costs.

Nortel Networks has been a pioneer in the GSM-R standards process since 1992, and has worked with UIC (Union Internationale des Chemins de Fer) and ETSI (European Telecommunications Standards Institute). Nortel Networks supplied equipment for the MORANE (Mobile Radio for Railways Networks in Europe) trial, and was heavily involved in the EIRENE (European Integrated Radio Enhanced Network) project. Nortel Networks has also been selected for GSM-R projects in Italy and the UK.

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 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 meet financial covenants contained in our credit agreements; 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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