KPN Delivers Broadband in Belgium with Nortel 40G-Ready Optical Solution

Increasing Network Capacity for Enabling Improved Service Experience Across Belgium-Wide Network AMSTERDAM, NETHERLANDS--(Marketwire - September 24, 2008) - KPN Belgium NV/SA, a subsidiary of KPN is providing pervasive broadband services across Belgium using a Nortel(1) (TSX: NT)(NYSE: NT) 40G-ready optical solution. The updated KPN optical backbone network will significantly increase the network capacity and improve the overall service experience. KPN is a leading European provider of new generation telecommunications services. KPN plans to use its enhanced Belgian backbone optical network to meet the increasing demand for bandwidth-sapping applications for business and residential users such as corporate VPN's, storage solutions, Internet video and other bandwidth consuming applications. It will also be cost-competitive helping to satisfy growing consumer appetite for competitively-priced bundled multiplay packages of land line and broadband services. "We aim to free our customers from bandwidth constraints so that users can access the services they need - such as high-speed Internet as well as related Internet-based applications and services," said Par Nilsson CEO, KPN Belgium. "Carriers all over the world are wrestling with staggering demand for more bandwidth and we believe that our enhanced network equips KPN Belgium to address those challenges and deliver the very best customer experience." "With Nortel's 40G optical technology carriers like KPN can increase network bandwidth simply and economically," said Tim Watkins president Northern Region, EMEA, Nortel. "Our optical technology not only increases network capacity, to accommodate the looming bandwidth demands, but is the only one that leverages existing network investment to provide the most cost-effective solution today, while also providing the simplest migration to 100G at some future point." The new 40G-ready network uses products from the Nortel Metro Ethernet Network's portfolio including Common Photonic Layer and Optical Multiservice Edge 6500. The solution for KPN Belgium features Nortel's electronic Dynamic Compensating Optics (eDCO) technology. This leverages the value of Reconfigurable Optical Add/Drop Multiplexing (ROADM) in 10G/40G all optical networking, with its superior system reach and integrated dispersion management capabilities. The next generation DWDM network provides connectivity between several major locations across Belgium while the 40G solution enables KPN Belgium to make more efficient use of the existing network and deliver higher bandwidth. By simply plugging in 10G or 40G transponder cards into the Optical Multiservice Edge 6500 shelves an end-to-end wavelength is readily provisioned with the Optical Service Provisioning (OSP) tool. This solution requires less equipment to plan for, deploy and maintain and will therefore help KPN Belgium to accelerate its service delivery to end user customers. This DWDM solution is capable of supporting 88 x 40G wavelengths (3.52 Terabits/sec). Optical Service Provisioning and Network Service View are applications within the Nortel Optical Network Manager. About KPN KPN is a leading telecommunications and ICT service provider in Europe, offering wireline and wireless telephony, internet, and TV to consumers and end-to-end telecom and ICT services to business customers. KPN's subsidiary Getronic operates a global ICT services company with a market leading position in the Benelux, offering end-to-end solutions in infrastructure and network-related IT. In Germany and Belgium, KPN pursues a multi-brand strategy in its mobile operations and holds number three market positions through E-Plus and BASE. KPN provides wholesale network services to third parties and operates an efficient IP-based infrastructure with global scale in international wholesale through iBasis. At December 31, 2007, KPN served over 35 million customers, of which 27 million in wireless services, 5.4 million in wireline voice, 2.4 million in broadband internet and 0.5 million in TV. With 25,500 FTEs (43,531 FTEs including Getronics). KPN posted revenues of EUR 12.6bn in 2007, with an EBITDA of EUR 4.9bn. KPN was incorporated in 1989 and is listed on the Amsterdam, New York, London and Frankfurt stock exchanges. 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. Contacts: Nortel Jody Prescott 01628-434190 Email: jodyp@nortel.com Website: www.nortel.com