Nortel, World leader in GSM-R Technology, Delivers European Railway Communications Compatibility, Enhancing Passenger Safety
VILNIUS, LITHUANIA--(Marketwire - January 29, 2008) - Lithuanian Railways has chosen a Nortel(1) (TSX: NT)(NYSE: NT) wireless communications network solution to enhance its railway communications and ensure compatibility of the Lithuanian national railway with international railway standards. Nortel's partner, Belam, is acting as the local partner for the implementation and construction of the project which will be completed in 2010.

The EUR 50.5 million (EUR 59.6 million including VAT) contract includes the implementation of a GSM-R radio communication system along more than 1,563 kilometres (approximately 88% of the country's rail network) of Lithuania's rail routes. This is the first GSM-R network implementation in the Baltic region. The project is partially funded by the European Community Cohesion Fund for European regional development.

European Union member Lithuania is the first of the Baltic countries to deploy a GSM-R solution.

Nortel's GSM-R solution is highly flexible in terms of supporting signalling systems from different vendors, one of the most important factors for communications interoperability. The solution for Lithuanian Railways can also support the European Train Control System (ETCS) which is a signalling, control and train protection system designed to replace incompatible safety systems in European Railways and is aimed at enhancing the safety and security of rail users on trains that cross country borders.

"Nortel is helping Lithuanian Railways transition to EC railway standards in order to provide a high-speed dependable communication network that makes our railways in Lithuania faster and safer and more reliable than before," said Laisvydas Rudzianskas GSM-R project manager, Lithuanian Railways.

By improving wireless train communications and enhancing rail safety and reliability, Nortel is assisting Lithuanian Railways to make it more attractive for people and businesses in the Baltic countries to opt for rail transport over less environmentally friendly forms of transport such as road transport and short-haul aviation.

"We are proud to be chosen by Lithuanian Railways to help build a modern and reliable railway wireless communication system that will support high-speed trains travelling in Lithuania and across country borders," said Sorin Lupu, president Eastern European markets, Nortel. "This is a significant win for Nortel in Eastern Europe and the Baltics, and underscores Nortel's commitment in leveraging the long term partnership with Belam and technology leadership which helps to improve the day-to-day operations of the railways and by extension the overall experience of rail operators and their rail passengers."

"Belam has worked with Nortel for more than 15 years on wireless communications projects and together we have considerable experience of delivering joint projects in the Baltic region, including Latvia and Lithuania. We partner with market leaders like Nortel so we can benefit from their experience and keep up to date on the top trends in railway communications," said Dmitry Krupnikov, director for Business Development, Belam. "Introducing GSM-R technology enables Lithuanian Railways to shift to a new level of cooperation within the entire EU railway system and will contribute to Lithuania's integration into the EU."

The Lithuanian Railways project requires a partial modernisation of the existing telecommunications system, including the replacement of the company's legacy analogue equipment with an end-to-end GSM-R system for voice and data that includes GSM-R terminals, dispatch system, backbone system, and services. This project will enable Lithuanian Railways to increase efficiency and considerably reduce capital and operational expenses.

Nortel has over 10 years experience with GSM-R mobile communications technology and is currently providing GSM-R on three continents. With greater than 60 percent of the more than 100,000 km of tracks using its GSM-R system, Nortel is the number one GSM-R provider globally. Nortel has national GSM-R contracts in Austria, France, Germany, and the UK as well as large GSM-R deployments in Algeria, China, the Czech Republic, Italy, India, Slovakia, Spain, and now Lithuania. Nortel is continuing to develop its GSM-R technology offering as part of its overall GSM business with a new portfolio of Core and Access products.

About Belam
Belam is a group of companies in the USA, Latvia, Lithuania, Russia and Belarus with more than 200 employees. Belam is a system integrator which has been operating in the Baltic countries since 1993.

Belam implements modern technologies in voice and data networks, develops optical, wire and wireless solutions for corporate and carrier needs. The company's main projects are linked to telecommunication networks in transport, military, security, financial, healthcare and business areas. Most projects are based on Nortel, Harris Stratex Networks and Keymile solutions. By keeping in step with the most advanced technologies, Belam is able to understand and meet the needs of its clients in the best possible way. Hundreds of companies have turned to Belam for innovative thinking and flexibility.

GSM-R Wireless Staff Communication and Signaling Optimize Train Performance

BEIJING, CHINA--(Marketwire - January 29, 2008) - China's Ministry of Railways (MOR) has gained powerful communications and train management capabilities for its busy system after selecting GSM-R mobile communications railway technology from Nortel(1) (TSX: NT)(NYSE: NT). The highly secure wireless network provides new communications capabilities between trains and ground staff along the 510 km high-speed passenger line between Zhengzhou and Xi'an.

With fast trains traveling at speeds of up to 350 km/hr, conventional mobile networks are not reliable enough to depend on for critical communications. Purpose-built for such applications, the Nortel GSM-R solution enables drivers, dispatchers, shunting team members, train engineers, station controllers and other railway employees to reach each other anywhere along the line, even at full speed. Features such as group calls, connections based on the train's position, prioritization of calls during emergencies, and connection to employees by function rather than name all ensure the rapid response necessary for safe and efficient train operation.

In May 2006, Nortel signed an agreement with MOR to deploy GSM-R to seven of MOR's 19 switching centers, at Xi'an, Chengdu, Harbin, Nanchang, Lanzhou, Kunming and Urumqi. As a significant component of the European Rail Traffic Management System (ERMTS), GSM-R reliably transports voice, data, and advanced European Train Control System-2 (ETCS-2) signaling data even at high speeds. This will enable MOR to safely maximize traffic on the Zhengzhou-Xi'an line, a significant rail route that is expected to promote trade and economic exchanges between eastern and western China. The Nortel GSM-R solution deployment also marks the first commercial operation of this kind on a dedicated passenger line (DPL) running up to 350 km/hr on the ETCS-2 in China.

"With its massive population and distributed manufacturing base, high-speed rail transportation has long been essential to China's economic success," said Jackson Wu, president, Greater China, Nortel. "Nortel was an early provider of GSM-R solutions, applying our Business Made Simple commitment to dozens of successful deployments on some of the world's most complex rail networks. The Ministry of Railways' decision to embrace GSM-R brings this critical rail link in line with global standards and ensures Chinese passengers will benefit from train services running at peak efficiency and safety."

Nortel has over 10 years' experience with GSM-R mobile communications technology and supplies solutions to 60 percent of the more than 100,000 km of tracks currently using the system. Currently providing GSM-R on three continents, Nortel is the provider with the biggest footprint in the industry. Nortel has national GSM-R contracts in France, Germany, the UK and Austria as well as large GSM-R deployments in Algeria, China, the Czech Republic, Italy, India, Slovakia, Spain, and recently in Lithuania.
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