Vodafone UK, Nortel Networks to Conduct 3G Wireless Internet Trial Submitted By: Pleon Monday, 13 December 1999

Vodafone UK, Nortel Networks to Conduct 3G Wireless Internet Trial Submitted by: Pleon Monday, 13 December 1999

NEWBURY, UK - Vodafone UK and Nortel Networks* [NYSE:/TSE: NT] are planning a trial in London beginning early next year of W-CDMA third generation (3G) wireless radio and IP (Internet Protocol) networking technologies expected to deliver faster, more reliable and more profitable Wireless Internet services. "For third generation wireless networks to be successfully deployed, they must cost-effectively deliver the services and applications tomorrow's consumers will demand," said Alan Harper, managing director, Vodafone Ltd. "Through this trial with Nortel Networks, we hope to gain a clearer understanding of both the technology and consumer behavior aspects of Wireless Internet, and use this information to guide us in the deployment of 3G networks worldwide," Harper said. "The inevitable combination of high Internet and high wireless use has created a new Wireless Internet value chain for the entire industry," said Pascal Debon, president, Wireless Internet, Nortel Networks. "As the industry reorganizes itself to take advantage of this emerging market, Nortel Networks is focusing on radically driving down the cost of delivering new wireless data services while creating a smooth evolution path for mobile operators," Debon said. Nortel Networks and Panasonic*, which formed an alliance in 1998 to develop 3G wireless voice and data solutions, will provide the radio equipment, core data network and terminals for the trial. A high-speed IP data connection - featuring Nortel Networks' Multiservice Passport* platform - will interconnect the trial equipment to various corporate intranets and the Internet. Vodafone UK will be able to test a variety of innovative data and voice services using prototype terminal equipment that subscribers can instantly recognize as consumer electronics devices. Among the devices to be tested is a mobile phone with a built-in camera and video screen which

Page 1 utilizes the MPEG4 video codec and is capable of transmitting and receiving data at rates up to 64 kilobits per second (kbps). Other planned trial devices include lightweight, pocket-sized voice terminals, wireless modems for laptop computers, and a mobile data device with transmission speeds up to 384 kbps. The trial will feature business and consumer applications. Participants will be able to hold live video communications sessions using the mobile videophones, or view streaming media from the Internet. In addition to this trial with Vodafone UK, Nortel Networks has W-CDMA trials planned or already underway with British Telecommunications PLC, France Telecom and the North American GSM Alliance. Nortel Networks is also planning cmda2000* 3G trials beginning next year with Telstra in Australia and Bell Mobility in Canada, and has demonstrated cdma2000 and wireless IP capability with Sprint PCS and Vodafone AirTouch. Nortel Networks is a global leader in telephony, data, wireless and wireline solutions for the Internet. The Company had 1998 revenues of US$17.6 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks* that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com * Nortel Networks, the Nortel Networks Globemark, Unified Networks, How the world shares ideas and Passport are trademarks of Nortel Networks. * Panasonic is a trademark of Matshushita Industrial Communications Ltd. * cdma2000 is a trademark of the Telecommunications Industry Association (TIA).

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