Telefonica Moviles Selects Nortel Networks for German, Spanish UMTS Networks

date: March 12, 2002

Telefonica Moviles SA has selected Nortel Networks to supply radio access equipment for build out of its 3G Universal Mobile Telecommunications System (UMTS) networks in Spain and Germany.

The combined award, which is subject to execution of definitive agreements, is estimated to be worth approximately US$250 million (Euro 285 million) over three years, with network rollout scheduled to commence in the second half of 2002. Nortel Networks expects to provide financing up to approximately US$230 million (Euro 260 million) in connection with the award.

Nortel Networks is also a provider of 3G networks in Europe, and particularly in Iberia, the first region in Europe expected to implement live 3G networks. Nortel Networks has announced six UMTS awards in Iberia.

Nortel Networks expects to provide Telefonica Moviles with radio infrastructure equipment in Spain, including Nortel Networks Internet Base Transceiver Station (BTS), and a full turnkey UTRAN (radio access) solution in Germany encompassing site acquisition, installation, commissioning, engineering and provisioning for more than 1,000 base stations.

"The continued success of Nortel Networks in securing these vital UMTS awards follows the recent (US)$500 million award from Cingular Wireless and further demonstrates our leadership position in supplying next generation wireless networks," said Pascal Debon, president, Wireless Networks, Nortel Networks.

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