SK Telecom Launches World's First Handset-Based HSDPA Network with LG-Nortel


3.5G Network Delivers Wireless Broadband to both Handsets and Laptops

SEOUL, May 28 -- SK Telecom, South Korea's largest mobile operator, has launched the world's first handset-based next-generation HSDPA network in cities across southern Korea using wireless broadband technology from LG-Nortel, a joint venture of LG Electronics and Nortel(x) (NYSE/TSX: NT).

SK Telecom's network is the first to provide HSDPA performance on handsets as well as data cards - ensuring high-speed, broadband wireless services are available to subscribers using either a handset or laptop computer. The services include high definition video-on-demand, MP3 streaming, multi-user mobile gaming, video calling, multimedia messaging and a host of other high bandwidth services. SK Telecom's service is branded "3G+" and will initially cover 25 cities across the country, with roll out to an additional 59 cities planned by the end of the year.

"The launch of our new brand "3G+" marks the beginning of the world's first handset-based HSDPA service. The brand will help familiarize users with HSDPA as we deliver a more sophisticated mobile lifestyle for our customers," said Bang Hyung Lee, Executive Vice-President and Chief Marketing Officer of SK Telecom. "We believe the widespread commercial service of HSDPA will bring new opportunities to SK Telecom as we accumulate the know-how of the more global W-CDMA technology-based cellular service in addition to our fully developed CDMA based service. And LG-Nortel has been instrumental in helping us achieve this success in a very short timescale"

"LG-Nortel, has ensured a rapid, high-quality deployment of the infrastructure required to support SK Telecom's "3G+" service," said Peter MacKinnon, Chairman, LG-Nortel. "LG-Nortel continues to work with SK Telecom to further enhance broadband mobility solutions in the world's most advanced broadband market. This announcement is another step on the road to deploying the next-generation of wireless network, or HSOPA/LTE, based on OFDM-MIMO, technologies in which Nortel has over seven years of innovation and several patents."

Nortel's HSDPA technology is helping SK Telecom reduce operating costs while delivering high-quality communications through more efficient use of its UMTS network. The technology is a key component in supporting SK Telecom's "3G+" services, ensuring the bandwidth and quality of service required to support new service offerings such as "high quality video call" and "ultra speed data transfer".

Nortel achieved the industry's first HSDPA mobile call in January 2005. Nortel and LGE completed the first live test calls using a commercial handset solution for HSDPA in March 2005. In June 2005, Nortel became the first wireless network supplier to complete the TL9000 registration standard for Quality Management System Requirements and Measurements across its HSDPA, UMTS and GSM wireless infrastructure solutions.

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. The total number of employees for the company is approximately 1,400. For more information on LG-Nortel, visit www.LG-NORTEL.com.

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

Source: Nortel

CONTACT: Bohyun Kim, +82 2 2005 2128, kimvo@LG-NORTEL.com; Hyun Chul
Ahn, +82 2 2005 2127, hcan@LG-NORTEL.com; Pat Cooper, (425) 450-7523,
pat.cooper@nortel.com

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