TAIPEI HOSPITAL/NORTEL DEMONSTRATE WIRELESS TELEMEDICINE.

Taipei City Hospital and Nortel (NYSE:NT)(TSX:NT) have demonstrated a far-reaching wireless telemedicine application with the potential to enable a new immediacy in life-saving medical resources for remote Taiwan communities and outlying islands.

In this initiative's first trial application, a surgeon from the Renai Branch of Taipei City Hospital was able to make a real-time wireless Internet connection from a Taipei city subway station to the county hospital on the island of Lienkiang in the Taiwan Strait.

The surgeon used a wireless laptop computer to remotely connect to the Nortel Multimedia Communication Server 5200 (MCS 5200) at the hospital to assess the progress of a patient who had been treated earlier in Taipei. The surgeon was able to remotely examine the patient's X-rays, as well as speak with the patient and the attending Lienkiang hospital physician via the Internet.

This telemedicine demonstration was part of Nortel's continuing collaboration with Taipei City, building on the potential for innovation the Nortel Wireless Mesh solution brings to Taipei's Mobile City (M-City) project. By the end of 2005, Taipei expects to have 10,000 mesh access points installed across 90 percent of its 272 square kilometers to provide seamless, high-speed wireless roaming for residents. Telemedicine is a critical component in the government's commitment to make Taipei a truly wireless 'Mobile City.' Taipei Mayor Ma Ying-jeou welcomed this demonstration of the integration of local medical resources and services for remote delivery via the Internet. He cited Nortel's contribution to improving healthcare efficiency and responsiveness by making it possible, through its wireless technology, for patients to obtain immediate care even when doctors are off duty. "Nortel continues to work with the Taipei City Government on extending the many advantages of mobility to its citizens, particularly in the important area of telemedicine," said Jackson Wu, managing director, Taiwan, Nortel. "This application trial further demonstrates the far-reaching benefits of Nortel's leading technology." Nortel's Multimedia Communications Portfolio, including both MCS 5100 and MCS 5200, delivers advanced multimedia and collaborative applications through the same commercially available hardware and open-standards software. This portfolio provides innovative technology for introducing secure, cost-effective new services with the flexibility to easily expand to meet future market demands. Nortel solutions are designed to enhance the human experience and power global commerce by delivering next generation communication applications that improve productivity through anytime access, regardless of location.

Nortel's Wireless LAN (local area network) portfolio includes three powerful, complementary offerings: the WLAN 2300 series introduced in March 2005; the Wireless 7200 series, a Wireless Mesh Network solution; and MeshPlanner for Nortel, a precise, intuitive planning tool, marketed jointly by Wireless Valley Communications and Nortel, that optimizes wireless mesh network design. In Phase I of the Taipei City project, Nortel's comprehensive Wireless Mesh Network solution was selected to implement the network infrastructure, including Wireless Access Point 7220, Wireless Gateway 7250 and Optivity Network Management System. Optical Ethernet and IDC firewall solutions by Nortel are also scheduled to be rolled out in Phase II.

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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries.

For more information, visit http://www.nortel.com or call 978/288-8439.