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Jan 8 2005

T-Mobile Austria has selected Nortel (NYSE:NT)(TSX:NT) to replace its existing packet core network with a General Packet Radio Service (GPRS) solution for delivery of multimedia and 'always on' high-speed wireless data services to its customers.

With this award, Nortel now provides its GPRS packet core platform to five companies within T-Mobile (TMO) International's European group. This includes companies in Germany, the UK, the Netherlands and the Czech Republic.

The GPRS solution from Nortel will make it possible for T-Mobile Austria to achieve operational efficiencies through reduced network complexity and operating expenses and fast introduction of new services. This solution will also provide a foundation for evolution to advanced third generation (3G) capabilities to meet market demand. T-Mobile Austria will be able to deploy such content aware services as flexible billing, which gives subscribers the option to be billed by content accessed, time spent downloading, or volume of data downloaded.

"T-Mobile Austria is the only Austrian mobile operator to offer GPRS roaming with more than 100 roaming partners around the world," said Gunther Ottendorfer, technical director, T-Mobile Austria. "This gives our customers access to their company network at any time from abroad. Objective tests have also shown that T-Mobile Austria has a high performance, stable and secure GPRS network. In the upcoming year 2005, we will further improve GPRS."

"The selection of Nortel for T-Mobile Austria's network upgrade demonstrates our continued market momentum and validates our leadership position in packet core solutions," said Peter MacKinnon, president, GSM/UMTS Wireless Networks, Nortel.

Nortel's end-to-end packet core solution offers operators a high capacity, proven solution that enables delivery of rich data services, including multimedia and voice over packet applications. Nortel has designed, installed and launched more than 300 wireless networks in over 50 countries across the globe. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-to-end provider of all next generation wireless solutions.

Nortel has been a supplier of GPRS and 3G networking gear for T-Mobile International's Pan-European network since 2002, and currently supplies 3G networking equipment to T-Mobile International in five countries.