Nortel Municipal Wireless to Help Spur Economy in Colorado, North Carolina Cities

Front Range, WindChannel Solutions Include Applications, Services, Technology BOSTON, MA -- (MARKET WIRE) -- June 04, 2007 -- Nearly a dozen communities in the foothills of northern Colorado are about to receive help in spurring economic development, enhancing public safety, expanding government services and making public Internet access more readily available thanks to Front Range Internet Inc. (FRII) and Nortel(1) (TSX: NT)(NYSE: NT). Front Range plans to be the first Internet service provider (ISP) to make municipal wireless services available in Fort Collins, Windsor, Loveland and other cities along the I-25 corridor north of Denver. One of the largest ISPs in Colorado, Front Range has selected Nortel to provide a complete municipal wireless solution integrating applications, services and technology under a two-year agreement announced today. Nortel also announced that it has deployed a municipal wireless network in Greenville, N.C. with WindChannel Communications, a leading provider of wireless solutions for government and private enterprise. This network is making free broadband wireless Internet access available to mobile professionals, residents and emergency first responders throughout downtown Greenville. "The mayor and city council saw this as a terrific economic development opportunity," said Thom Moton, assistant city manager, City of Greenville, N.C. "By leveraging the popularity of wireless Internet access, Greenville can attract more patrons for businesses in the downtown area and provide another amenity for East Carolina University students, whose main campus anchors the east side of downtown. Plus we gain benefits in productivity and public safety by providing city employees and emergency first responders with mobile wireless connectivity." The announcements were made at MuniWireless07: New England, a regional industry conference where Nortel is demonstrating the potential benefits of a municipal wireless infrastructure to communities like these. Such benefits include on-the-spot police and fire department access to time-sensitive information, time and cost savings from automated gas and water meter reading and other applications, convenient online access to libraries and city services, and a more attractive environment for new business through widespread availability of broadband service. "Combining infrastructure, services and applications into a single, integrated municipal wireless solution creates a compelling offer with high community and economic value," said Charles Salameh, vice president, Network Business Solutions, Nortel. "That's why wireless Internet service providers like Front Range and WindChannel are turning to Nortel. We have the technology, revenue-generating applications, relationships, services and global experience to deliver this integrated solution, and to get it in right the first time." "Technology is important, but a priority for us is Nortel's experience," said Bill Ward, chief executive officer, Front Range Internet Inc. "They've done this before. They've done it successfully. And they can help us be successful in bringing the public and economic benefits of broadband wireless to the communities we serve on a long-term basis." "Backed by the depth and breadth of Nortel's solutions and experience, we're able to provide our customers with the full range of wireless solutions and technology they need to enhance economic competitiveness," said Randy Choplin, president and chief operating officer, WindChannel Communications. Nortel's municipal wireless network deployments include one of the world's largest, serving more than 160,000 subscribers in Taipei City, and a wireless mesh network for Golden Telecom eventually expected to offer service to more than 3.9 million households in Moscow. Nortel also recently announced an agreement with 4G Metro, a Granbury, Texas-based wireless ISP, to help provide high-speed wireless Internet access and a range of information and entertainment services for more than 9,000 daily commuters on the Trinity Railway Express between Dallas, Fort Worth and the DFW International Airport. Nortel offers communities a single source for everything necessary to promote fast, seamless and cost-effective deployment of municipal wireless networks. Nortel's Municipal Wireless Solution combines wireless mesh, wireless LAN and WiMAX technologies with business model consulting, radio frequency and network design, installation, configuration, acceptance testing and project management. Nortel can also help connect municipalities with the service providers and anchor tenants best suited to addressing their economic development and community services needs. About Front Range Internet Front Range Internet Inc. (FRII) has been providing quality Internet and communication services to businesses and individuals since 1995. FRII takes pride in its technical expertise and in providing exceptional service to its customers. FRII is proudly among the largest Internet service providers in Colorado. FRII provides custom-tailored Internet solutions using High Speed Broadband, T-1 to OC-12, Fiber, VoIP, Class-A Data Center, Web Design and Hosting, Dialup, Spam and Virus Filtering, Internet Security, Consulting Services, and Data Storage and Backup. FRII is a trusted source for custom-designed communication structure. FRII is constantly creating new and intelligent solutions to make life easier. Voice, Data, Storage - FRII is the connectivity expert. About WindChannel Communications WindChannel Communications, in partnership with Airimba Wireless, offers a diverse range of wireless solutions. With the ability to engineer and install innovative wireless applications, the company has built a substantial municipal practice that encompasses everything from public safety and wireless as an amenity to LAN extension and Homeland Security. Additionally, with a strong presence in the hospitality and housing markets, they have become a leader in offering creative and affordable solutions. With a diverse range of partnerships, WindChannel combines leading-edge technology with world-class customer care to meet the rising demand for secure, reliable and flexible bandwidth solutions faster and more affordably than traditional wireline providers. The company is delivering on its vision for a world without wires to communities throughout the nation. To learn more contact Mark Poole at mpoole@windchannel.com or at 919-538-6272. About Nortel Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news. Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. (1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party. Contacts: Nortel Mark Buford (972) 362-1512 Email: mark.buford@nortel.com Nortel Ben Roome +44-1628-433-113 Email: benroome@nortel.com Website: www.nortel.com