K&K Active Announced as Exclusive LG-Nortel WDM-PON Sales Channel for Finland

LONDON, UNITED KINGDOM, Jul 06 (MARKET WIRE) --
K&K Active Oy, a value-added distributor of data transfer and
telecommunications products, has reached an agreement with LG-Nortel to
be its exclusive Ethernet Fiber Access solution sales channel in Finland.
LG Nortel is a joint venture of LG Electronics and Nortel(1) (OTCBB:
NRTLQ) and K&K Active Oy is part of the Swedish Lagercrantz Group.

The Nortel Ethernet Fiber Access solution, based on Wave Division
Multiplexing Passive Optical Network (WDM-PON) technology, will enable
K&K to extend its products and service portfolio to address customers
interested in next-generation access solutions for residential, business
and backhaul services. K&K can now sell one integrated solution for
multiple FTTX (Fiber To The 'X') market segments, with residential,
business and backhaul applications on a single platform over a
foundational infrastructure.

"The coming years will be the real start to Fiber To The Home (FTTH)
solutions in Finland," said Harri Raty, product area manager, Optical
Solutions, K&K Active Oy. "LG-Nortel WDM-PON systems will significantly
strengthen our optical access product portfolio and will immediately
enable us to offer end-users sustainable speeds of up to 1 Gigabit/s.
LG-Nortel's Ethernet Access WDM-PON technology is a cost-effective FTTH
technology that fulfils the requirements set in the Finnish Government's
recently published National Broadband Strategy."

Applications such as unified communications, high-definition
videoconferencing, IPTV, and high-speed mobile communications
significantly boost worker productivity and business efficiency, but they
can present challenges for service providers by dramatically increasing
the amount of data travelling over their networks.

"Fiber-optic connectivity is essential to meet growing bandwidth demands
and unlock new residential and business applications," said Peter
MacKinnon, chairman, LG-Nortel. "Working with K&K we will be able to
deliver a next-generation access infrastructure to support the national
effort to deliver broadband to Finland's businesses and households."

Nortel's Ethernet Access solution, using WDM-PON technology, uses
existing optical backbone infrastructure and enables multiple wavelengths
to be carried over existing optical fiber. This fiber reuse enables K&K
to offer dedicated and symmetrical bandwidths straight to homes and
businesses at a fraction of the cost of laying new fiber.

K&K Active Oy is a value-added distributor of data transfer and
telecommunications products. Together with its business partners and
affiliates, K&K Active Oy aims to provide customers with solutions that
enhance their competitive advantage. The K&K product range covers
multiservice and optical systems, IP-communication products, radio
systems, xDSL and software for broadband provisioning and monitoring.

About LG-Nortel

LG-Nortel is a joint venture of LG Electronics and Nortel. Established in
2005, LG-Nortel provides leading edge telecommunications equipment and
network solutions, spanning wired and wireless technologies, to service
provider and enterprise customers in Korea and around the world.
LG-Nortel is also actively developing next generation solutions for
global markets, with over 750 skilled R&D engineers currently focused on
wireless broadband technology evolution and the development of powerful
new product lines. For more information on LG-Nortel, visit
www.lg-nortel.com.

About Nortel

Nortel delivers 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. 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. LG-Nortel and the LG-Nortel logo are trademarks of LG-Nortel.

Contacts:
Nortel
Greta Brown
+44-(0)1628-432968
gretab@nortel.com

LG-Nortel
Bohyun Kim
+82 2 2005 2128
kimvo@lg-nortel.com

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