Nortel Becomes Strategic Vendor for Liberty Global - One of the World's Largest Cable Operators


DENVER, June 21/PRNewswire/ --
Liberty Global Signs Purchasing Agreement with Nortel Through 2007

Nortel(x) (NYSE/TSX: NT) today announced that Liberty Global, the world's
leading international cable operator, has signed a global purchase agreement
(GPA) with Nortel to cover purchases through 2007. The GPA gives Liberty
Global access to a uniform purchasing process and pricing terms for Nortel's
cable VoIP and optical solutions and services.

With the agreement, Nortel is now an approved vendor across Liberty
Global's cable subsidiaries - such as UPC Broadband in Europe, J:COM in Japan
and VTR in Chile - that serve 15 million customers in 18 countries around the
world.

"Nortel's expanded relationship with Liberty Global is another
significant proof point to our leadership in the cable market," said Dion
Joannou, president, North America, Nortel. "Our VoIP and optical transport
solutions are now deployed in more than thirty cable networks around the
world."

"We anticipate telephone services utilising Voice over IP technologies to
be a tremendous service offering for our customers," said Tony Werner, senior
vice president and chief technology officer, Liberty Global. "This purchasing
agreement furthers the strong relationship we have with Nortel, and we look
forward to having Nortel continue to provide cable solutions that support
VoIP and other quality services that we deliver to our customers."

Products included in the global purchase agreement include Communication
Server (CS) 2000 and 2000-Compact, Nuera BTX and MG 3000 series media
gateways, Multimedia Communication Server 5200, Optical Metro 4000 series,
Optical Metro 5000 series, Common Photonic Layer (CPL), Optical Multiservice
Edge (OME) 6500, Optical Long Haul 1600, and Optical Cross Connect DX. The
agreement also includes services from the Nortel Global Services portfolio.

Recent contracts awarded to Nortel by UPC Broadband will be rolled into
the GPA. This includes the deployment of Nortel's CS 2000-based VoIP
solutions in UPC's networks in the Netherlands and Austria. UPC also has an
installed base of Nortel CPL, OME 6500, OME 6110 and OM 5200 products from a
deployment of video and high-speed data transport solutions.

Nortel continues to gain momentum in the cable market with solutions
designed to help cable operators drive new revenue opportunities and reduce
operating costs. These comprehensive, integrated cable solutions span
broadcast and on-demand video transport, voice and multimedia communications,
high-speed data services, high-bandwidth and voice services for business
customers, and next generation wireless access.

Nortel's cable customers include Cablevision, Cable Onda, Charter
Communications, Cogeco, Comcast, Cox Communications, Dacom, Eastlink,
Intercable, Jupiter, Kabel BW, Mediacom, NTL, Retecal, Rogers Cable, Shaw
Cablesystems, TeleCable, Telenet, Telewest, Time Warner Cable and Unity
Media.

About Nortel

Nortel is a recognised 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 www.nortel.com. For the latest Nortel news, visit
nortel.com/news.

Source: Nortel

For further information: Bo Gowan, +972-685-8278, bogowan@nortel.com; Greta Brown, +44-1628-432968, gretab@nortel.com/

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