Nortel Networks Corporation [OTC: NRTLQ] announced that it,its subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc. and Nortel Networks UK Limited (in administration), have completed the sale of all of Nortel’s remaining patents and patent applications to a consortium consisting of Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony, for a cash purchase price of US$4.5 billion.

As previously announced, the sale includes more than 6,000 patents and patent applications spanning wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors and other patents. The extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from Nortel’s creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

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Nortel Networks Corporation announced that the mediation process that had been commenced in respect of the allocation of sale proceeds of Nortel’s various business and asset divestitures and other inter-estate matters, including inter-company claims, has ended without resolution of the matters in dispute. As previously announced, the Nortel entities that are in creditor protection proceedings in Canada, the United States, and Europe, the Middle East and Africa, as well as the Canadian Monitor, the U.S. Principal Officer, the U.S. Official Unsecured Creditors’ Committee, the Ad Hoc Bondholders Group and certain other interested parties, had entered into a confidential, non-binding mediation in an attempt to reach a consensual settlement of all material outstanding inter-estate matters. Mediation sessions were first held in November 2010 and again from April 11 to April 13, 2011.

In light of the unsuccessful conclusion of the mediation process, delays in the ultimate resolution of allocation and inter-company claims matters potentially could be significant. Such delays would result in a corresponding significant delay in the timing of distributions to holders of validated claims of the various estates.

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Google has offered $900m for Nortel’s patent portfolio. Google claims it does so to protect it’s own patent claims and their Android strategy sure has a play in this. Nortel finds Google’s offer high enough, but there is still time for other parties to bid higher, though we find that not too likely. According to the NY Times the portfolio holds over 6000 patents.

Is Google just protecting their patents or are they trying to get a piece of the LTE market to at one day become a mobile operator? Please share your views below.

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Bankrupt Nortel sold 666,624 IPv4 addresses to Microsoft for the sum of US$ 7.5-million, which is over $11 per IP address. According to a court filing “Because of the limited supply of IPv4 addresses, there is currently an opportunity to realize value from marketing the Internet Numbers, which opportunity will diminish over time as IPv6 addresses are more widely adopted.”.
Read more here

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Nortel Networks Corporation announced that Guangdong Nortel Telecommunication Equipment (“GDNT”), a Chinese joint venture between Nortel Networks Limited, Nortel China Limited and certain third parties, has entered into an asset sale agreement with Ericsson (China) Communications Company Ltd. (“Ericsson”) for the sale of substantially all of the assets of GDNT for a purchase price of approximately U.S. $50 million in cash, subject to certain purchase price adjustments. Nortel subsidiaries Nortel Networks Limited and Nortel China Limited together own 62 percent of GDNT.

Nortel will work diligently with Ericsson and the other shareholders of GDNT to close the sale in the first quarter of 2011. The agreement is subject to regulatory approval and other conditions.

All of the GDNT employees will be offered employment with Ericsson.

“This sale is a milestone in that it is the last of Nortel’s significant business divestitures, which sales have preserved both Nortel’s technology innovation and its rich base of skilled employees. The sale of the GDNT business to Ericsson provides a path forward for approximately 1,100 employees,” said George Riedel, Chief Strategy Officer, Nortel.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

About GDNT

GDNT is a Chinese joint venture between Nortel and a number of Chinese shareholders that was established in 1995. GDNT provides leading edge telecommunications equipment and services spanning CDMA, GSM and DMS technologies.

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Nortel Networks Corporation [OTC: NRTLQ] announced that it, its principal operating subsidiary Nortel Networks Limited and its other Canadian subsidiaries that filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) have obtained an order from the Ontario Superior Court of Justice (Canadian Court) further extending, to February 28, 2011, the stay of proceedings that was previously granted by the Canadian Court. The purpose of the stay of proceedings is to provide stability to the Nortel companies to continue with their divestiture and other restructuring efforts.

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Nortel Networks Corporation announced that it, its principal operating subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc. and Nortel Networks UK Limited (in administration), have concluded a successful auction of substantially all of the assets of Nortel’s Multi Service Switch businesses globally. Telefonaktiebolaget LM Ericsson (“Ericsson”) has emerged as the winning bidder with a purchase price of US$65 million.

Under the terms of the agreements, Ericsson’s purchase includes substantially all assets of the MSS business globally including the associated Data Packet Network (DPN) and Services Edge Router (Shasta) product groups. These agreements also include substantially all customer contracts and certain intellectual property related to the MSS business.

The sale is subject to relevant court and regulatory approvals, including Canadian and U.S. court approvals. Nortel will work diligently with Ericsson to close the sale expeditiously, subject to the timing of regulatory required approvals.

Substantially all MSS employees will have the opportunity to continue their employment with Ericsson, including those in certain EMEA jurisdictions who will transfer to Ericsson by operation of law. The sale is also subject to certain regulatory approvals, information and consultation with employee representatives and/or employees in certain EMEA jurisdictions, other customary closing conditions and certain post-closing purchase price adjustments.

Commenting on the announcement, John Luszczek, General Manager of Nortel’s MSS business said: “Today’s announcement is welcome news for so many stakeholders – our customers, partners, suppliers and employees. It is yet another proof-point of Nortel’s ongoing commitment to preserve innovation and customer relationships that we have nurtured and grown over the past two decades.”

“Our focus now is to work closely with Ericsson to ensure as seamless a transition as possible for our customers. At the same time, we will continue to deliver the superior service that our customers have come to expect from Nortel.”

In the 1990s, Nortel built some of the largest carrier and enterprise data networks in the world, leading to the establishment of this market segment category and Nortel MSS becoming recognized as an industry leader.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

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Nortel* Networks Corporation [OTC: NRTLQ] announced that it, its principal operating subsidiary Nortel Networks Limited and its other Canadian subsidiaries that filed for creditor protection under the Companies’ Creditors Arrangement Act have obtained an order from the Ontario Superior Court of Justice (“Canadian Court”) further extending, to October 29, 2010, the stay of proceedings that was previously granted by the Canadian Court. The purpose of the stay of proceedings is to provide stability to the Nortel companies to continue with their divestiture and other restructuring efforts.

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Business collaboration took another step forward as Nortel* [OTC: NRTLQ] Carrier VoIP and Application Solutions’ (CVAS) added a new web-based UC collaboration application to its industry-leading Hosted IP Communications Solution. The new application enables service providers to increase subscriber productivity and generate incremental revenues by allowing users to instantly shift from conference calls to full, rich-media web collaboration when the need arises.

Unveiled today at the ITPX event ** in Las Vegas (booth #209) , the new application will allow users to quickly launch a full suite of collaboration services, such as application sharing, document presentation, interactive whiteboards, public and private chat, polling/surveying, synchronized web browsing, and desktop sharing. In addition, the solution allows multiple presenters and collaboration sessions to take place at the same time, which creates a truly unified and interactive communication experience.

“Nortel CVAS’ Hosted IP Communications solution is unlocking new modes of communication and collaboration by eliminating the need for users to work with disparate and disconnected tools and services,” said Samih Elhage, president, CVAS, Nortel. “Now when workers are speaking with each other and find that a richer collaborative environment is necessary, there is virtually zero time delay between decision to collaborate and collaboration. Our new application allows people to interact and collaborate virtually, almost as if they were in the same room. It also helps to improve business productivity and arms service providers with the means to increase subscriber loyalty and revenue potential.”

The new application incorporates Dimdim’s web conferencing platform into Nortel CVAS’ Adaptive Unified Communications Application which is a key component of Nortel CVAS’ Hosted IP Communications solution. Dimdim’s platform enables real-time, rich-media collaboration and meeting sessions. The solution serves a wide target market and runs on most popular operating systems including Mac, Windows and Linux.

“We’re delighted that Nortel CVAS is integrating our platform with its Adaptive UC application, allowing service providers to increase subscriber growth and loyalty by providing secure, collaborative and interactive communication services to end users,” said DD Ganguly, CEO of Dimdim. “Our goal is to provide our partners and customers with the most intuitive approach possible to Web conferencing. With no software to install or download and a myriad of advanced collaboration tools, Dimdim is committed to meeting the needs of all Nortel CVAS customers.”

Nortel CVAS will also demonstrate its new web-based UC collaboration application at the 2010 Cable Show ** (booth #711) taking place May 11-13 at the Los Angeles Convention Center in California.

Nortel CVAS’ Adaptive UC Application offers integrated voice, personalized audio/video conferencing bridges, web based portals, and is offered in multiple environments including Microsoft OCS, Lotus Sametime and standalone UC configurations. The solution provides enterprises with a graceful migration to UC through support of mixed legacy TDM, traditional VoIP and mobile devices. Nortel CVAS’ Adaptive UC solution has been deployed by a number of service providers across the globe and recently received TMCNet’s 2009 Unified Communications ** magazine Product of the Year Award **.

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Nortel* Networks Corporation [OTC: NRTLQ] announced today that its principal operating subsidiary Nortel Networks Limited (“NNL”) has entered into a share purchase agreement (“Agreement”) with Telefonaktiebolaget LM Ericsson (Publ) (“Ericsson”) for the sale of its 50% plus 1 share interest in LG-Nortel Co. Ltd., the company’s Korean joint venture with LG Electronics Inc. (“LG Electronics”), for a purchase price of US$242 million in cash subject to certain purchase price adjustments.

“Today’s announcement is a positive step forward in securing a sound future for the LG-Nortel business and its valued customers,” said Paul House, Chairman and General Manager, LG-Nortel. “Credit is due to the employees of LG-Nortel who have built this Joint Venture into a world class, profitable business.”

The Agreement is subject to approval of the Ontario Superior Court of Justice as well as satisfaction of customary regulatory and other conditions.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

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Nortel Carrier VoIP and Application Solutions (CVAS) today announced that the company continues its reign as the #1 global Carrier VoIP and Softswitch market leader with the largest revenues in the Carrier VoIP market for the fourth quarter of 2009, according to new data from both Infonetics Research and Dell’Oro Group. Nortel CVAS also grew share in every sector of the VoIP market in 2009, according to Infonetics Research.

“Our recent research concluded that the Carrier VoIP equipment market was up 2.8% in the fourth quarter of 2009 and is expected to grow modestly over the next three years,” said Diane Myers, directing analyst, service provider VoIP and IMS for Infonetics Research. “Nortel CVAS has been a consistent leader in the Carrier VoIP market due to the company’s foundation of voice expertise and commitment to next-generation VoIP solutions.”

Nortel CVAS’ performance in 2009 and momentum in VoIP solution sales and technology innovation have placed the company at the vanguard of the VoIP industry. According to Infonetics Research’s report, Service Provider VoIP Equipment and Subscribers Market Share, Size, and Forecasts – 4Q09, Nortel CVAS grew share in every sector of the VoIP market in 2009. Infonetics also found that Nortel grew its global softswitch share by 4 points to 28 points and over 8 points share in the North American softswitch market, reaching 70 percent revenue share, during the fourth quarter of 2009. In addition, Nortel CVAS’ media gateway revenue share increased by 1.2 points compared to 2008.Infonetics also reported that Nortel CVAS grew 3 points in its global Voice Application Server revenue share to 13.7.

Dell’Oro Group’s report, Carrier IP Telephony Report, 4Q09, ranked Nortel CVAS as the #1 supplier in the global Carrier VoIP and softswitch markets for the fourth quarter of 2009 and for the entire year. This marks Nortel CVAS’ eighth consecutive year holding the leadership position.

“Growing market share in every segment of the VoIP space and being named as the #1 provider in the global Carrier VoIP and Softswitch markets for the past eight years is a powerful customer validation for Nortel CVAS,” said Samih Elhage, president, CVAS, Nortel. “Over the past year, we generated significant momentum in VoIP solution sales and technology innovation which led to securing business with more than 40 new Carrier VoIP customers, over 10 of which are Tier 1 operators. These accomplishments, which were validated by the many product and solution awards that we achieved for our work in 2009, occurred during one of the most tumultuous times in the industry and the company’s history, and are a testament to the dedication and expertise of our employees, as well as our strong and loyal customer base of leading carriers across the globe.”

Marking another milestone was Nortel CVAS’ Adaptive Application Engine , which has reached over 11 million lines shipped, making the server a leader in the Voice Application Server market. The key drivers behind this success are service provider’s growing demand for Fixed-Mobile Convergence, Adaptive Unified Communications and Web IP applications.

Nortel CVAS’ leading position in Carrier VoIP is a direct result of Nortel CVAS’ unwavering commitment and ongoing innovation in delivering leading-edge VoIP solutions that help service providers boost network efficiencies, lower total cost of ownership and reduce subscriber churn. Nortel CVAS’ solutions include: Business Voice and Multimedia solution, Consumer Voice and Multimedia solution, Transit and Multimedia Interconnect solution, and the Class 5 solution. These solutions have been successfully deployed across the globe to satisfy the needs of both small and the large Service Providers deployments.

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Nortel* Networks Corporation [OTC: NRTLQ] announced that it, its principal operating subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc., Nortel Networks UK Limited (in administration), and Nortel Networks SA (NNSA) have completed the sale of substantially all of the global assets of Nortel’s GSM/GSM-R business. Telefonaktiebolaget LM Ericsson (“Ericsson”) and Kapsch CarrierCom AG (“Kapsch”) have purchased the businesses for US$103 million in cash subject to working capital adjustments.

Ericsson has purchased assets relating to the North American GSM business and Kapsch has purchased assets relating to the EMEA and Taiwan GSM businesses. Kapsch has also acquired the global assets of the GSM-R business.

“Today, we’ve reached another successful milestone in the divestiture of our businesses,” said John Doolittle, Chief Financial Officer, Nortel. “We wish our transferring employees well, knowing that they are taking their considerable expertise to Ericsson and Kapsch.”

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

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Nortel Networks Corporation announced that at a joint hearing today, it, its principal operating subsidiary Nortel Networks Limited (NNL) and certain of its other subsidiaries, including Nortel Networks Inc. (NNI) obtained orders from the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice approving the “stalking horse” asset sale agreement with GENBAND, Inc. (GENBAND) for the sale of substantially all of the assets of its North America, Caribbean and Latin America (CALA) and Asia Carrier VoIP and Application Solutions (CVAS) business. Certain other Nortel subsidiaries, including Nortel Networks U.K. Limited (in administration), have entered into a separate asset sale agreement with GENBAND for the sale of substantially all of the assets of the Europe, Middle East and Africa (EMEA) portion of its CVAS business.

The court orders also established bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code.  Qualified bidders will be required to submit offers for the CVAS business by February 23, 2010, subject to any permitted extensions. Competing qualified bids would then be expected to proceed to an auction, currently scheduled for February 25, 2010.   Following completion of the bidding process, the sale will require final approval of the U.S. and Canadian courts.

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Nortel Networks Corporation [OTC: NRTLQ] has entered into a “stalking horse” asset sale agreement with GENBAND, Inc. (GENBAND) for the sale of substantially all of the assets of its North America, Caribbean and Latin America (CALA) and Asia Carrier VoIP and Application Solutions (CVAS) business, and an asset sale agreement with GENBAND for the sale of substantially all of the assets of the Europe, Middle East and Africa (EMEA) portion of its CVAS business for a purchase price of US$282 million, subject to balance sheet and other adjustments currently estimated at approximately US$100 million.

These agreements include the planned sale of substantially all assets of the CVAS business globally including softswitching, gateways and SIP applications. These agreements also include all patents and intellectual property that are predominantly used in the CVAS business.

GENBAND has teamed with one of its existing shareholders, One Equity Partners III, L.P. (OEP), to assist in financing the proposed purchase of Nortel’s CVAS assets. OEP manages investments and commitments for JP Morgan Chase & Co. in private equity transactions.

Currently, subject to the terms of these agreements as well as any changes that may occur through the stalking horse and sale process, a significant majority of CVAS employees would have the opportunity to continue employment with GENBAND. This includes the employees assigned to the CVAS business in certain EMEA jurisdictions who would transfer to GENBAND by operation of law.

In early January, Nortel expects to seek U.S. and Canadian court approvals for bidding procedures, including a bid deadline and tentative auction date.

Commenting on the announcement, Samih Elhage, President of Nortel’s CVAS business said:

“The proposed transaction represents a clear and positive step forward for Nortel’s CVAS customers, employees, and business. Today’s announcement is a strong endorsement of our continued leadership in the Carrier VoIP market where we have held the #1 position since 2002.”

Elhage continued: “Nortel’s industry-leadership in Carrier VoIP would not be possible without the continued commitment and support of our strong and loyal customer base of leading carriers across the globe. Throughout this process, Nortel will remain focused on providing our customers the highest level of service, support and responsiveness that they have come to expect from our team. Today’s news is also a testament to our employees, whose commitment to innovation and customer support has ensured our growth in market share in 2009 despite a challenging economy.”

Nortel is the recognized leader in the Carrier VoIP space, having shipped more than 118 million Carrier VoIP and Multimedia ports, including over 10 million SIP lines to leading wireline and wireless carriers globally. In addition, Nortel has secured business with 10 leading service providers since late 2008 and has gained more than 40 new Carrier VoIP customers since the beginning of 2009.

Details of Sale Process

Nortel will file the stalking horse asset sale agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code. A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice. Following completion of the bidding process, final approval of the U.S. and Canadian courts will be required.

In relation to the EMEA entities to which they are appointed, the UK Joint Administrators have the authority, without further court approval, to enter into the EMEA asset sale agreement on behalf of those relevant Nortel entities. In some EMEA jurisdictions, this transaction is subject to information and consultation with employee representatives and/or employees.

In addition to the processes and approvals outlined above, consummation of the transaction is subject to the satisfaction of regulatory and other conditions and the receipt of various approvals, including governmental approvals in Canada and the United States and the approval of the court in Israel. The agreements are also subject to purchase price adjustments under certain circumstances.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

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Nortel Networks Corporation [OTC: NRTLQ] announced that it, its principal operating subsidiary Nortel Networks Limited (“NNL”) and its other Canadian subsidiaries that filed for creditor protection under the Companies’ Creditors Arrangement Act have obtained an order from the Ontario Superior Court of Justice (“Canadian Court”) further extending, to January 29, 2010, the stay of proceedings that was previously granted by the Canadian Court. The purpose of the stay of proceedings is to provide stability to the Nortel companies to finalize funding arrangements and continue with their divestiture and other restructuring efforts.

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Avaya announced the successful completion of its acquisition of Nortel Enterprise Solutions (NES).

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Nortel Networks Corporation [OTC: NRTLQ] announced that its principal operating subsidiary, Nortel Networks Limited (NNL), its U.S. subsidiary, Nortel Networks Inc., and its Canadian subsidiary, Nortel Networks Technology Corporation, have completed the sale of the assets of its Carrier Networks business associated with the development of Next Generation Packet Core network components (Next Generation Packet Core Assets) to Hitachi Ltd. for a purchase price of US$10 million. The sale was subject to court approvals in the U.S. and Canada as well as regulatory and other customary closing conditions. These conditions have now been satisfied and the sale was concluded effective today.

Under the agreement, the assets include the Next Generation Serving GPRS Support Node on Advance TeleComputing Architecture (ATCA), the Next Generation Gateway GPRS Support Node on ATCA, the Mobility Manager Element on ATCA, the AGW Serving Gateway on ATCA, the AGW Packet Data Gateway on ATCA, and the Network Element Manager associated with each.  These products support the transfer of data over existing wireless networks and the next generation of wireless communications technology. The assets include relevant non-patent intellectual property, equipment and other related tangible assets, as well as a non-exclusive license of certain relevant patents and other intellectual property.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

Nortel had previously announced on August 10, 2009 that it was in the process of identifying a principal officer for Nortel Networks Inc. and the other Nortel companies in U.S. Chapter 11 proceedings (U.S. Debtors). Nortel Networks Inc. has entered into an agreement with John Ray who will fill the role of Principal Officer of the U.S. Debtors. In such capacity, John Ray will work with Nortel management, the Canadian Monitor, the Joint Administrators in the U.K. administration proceedings and various retained advisors, in monitoring and providing oversight of the conduct of the businesses of the U.S. Debtors in relation to various matters in connection with the Chapter 11 proceedings. Ray brings extensive experience in financial restructurings and wind downs under Chapter 11 to the role. The appointment of the Principal Officer is subject to U.S. bankruptcy court approval.

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Nortel Networks Corporation [OTC: NRTLQ] announced that it, its principal operating subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc., Nortel Networks UK Limited (in administration), and Nortel Networks SA (NNSA) have concluded a successful auction of substantially all of the global assets of Nortel’s GSM/GSM-R business. Telefonaktiebolaget LM Ericsson (“Ericsson”) and  Kapsch CarrierCom AG (“Kapsch”) are the winning joint bidders with a purchase price of US$103 million in cash.

The sale is subject to court approvals in the U.S. and Canada, which Nortel will seek at a joint hearing on December 2, 2009, and in France. The sale is also subject to certain regulatory approvals, information and consultation with employee representatives and/or employees in certain EMEA jurisdictions, other customary closing conditions and certain post-closing purchase price adjustments. Nortel will work diligently with Ericsson and Kapsch towards an expected sale close in the first quarter of 2010, subject to the timing of obtaining regulatory approvals.

If approved by the courts, Ericsson will purchase the North American GSM business and Kapsch will purchase the European and Taiwan GSM businesses. Kapsch will also purchase the global GSM-R business. Nortel has more than 15 years experience with this technology and is the number one GSM-R provider globally.

Each bidder will assume the relevant customer contracts in their specified regions as well as the products, specified patents predominantly used in the GSM/GSM-R business and non-exclusive licenses of other relevant patents.

Approximately 680 Nortel employees will receive offers of employment from the joint bidders. This includes those employees assigned to the GSM/GSM-R business in certain EMEA jurisdictions who will transfer automatically to Kapsch by operation of law.

“This is a major step forward for our business. These acquisitions will enable our customers to continue to benefit from the product innovation and support that they’ve come to expect from us,” said Graham Richardson, GM for the GSM/GSM-R business, Nortel. “Today’s announcement is also a turning point for our employees, the majority of whom will take their considerable expertise on to Ericsson and Kapsch.”

“The transaction emphasizes Ericsson’s commitment to the North American market and strengthens our position as the leading provider of telecommunications technology and services in the United States and Canada” said Hans Vestberg, incoming President and CEO of Ericsson.

“We have worked closely with Nortel on the GSM/GSM-R business for over 20 years. This acquisition transforms Kapsch from a regional player to the market leader in GSM-R,” said Thomas Schöpf, Chief Operating Officer of Kapsch.

Mag. Georg, Chief Executive Officer of Kapsch, said:

GSM (Global System for Mobile communications) is the most popular wireless technology standard for mobile phones in the world. Nortel is a leading supplier of GSM networks and has worked with operators worldwide on implementing the GSM family of access technologies including GSM/GPRS/EDGE. Also based on GSM technology is GSM-R (GSM for Railways) which provides a secure communications system for railways operators.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests

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Nortel Networks Corporation (OTCBB:NRTLQ) announced that in light of ongoing discussions with interested parties, it has decided to not hold the previously scheduled auction today in relation to the sale of its global Optical Networking and Carrier Ethernet businesses. Qualified bidders are now required to submit offers by November 17, 2009. The Company expects to provide a further update on the auction process and sale of these businesses next week.

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Nortel* Networks Corporation [OTC: NRTLQ]  plan to sell, by auction, the assets of its Carrier Networks business associated with the development of Next Generation Packet Core network components (Packet Core Assets).  The Packet Core Assets consist of software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, including relevant non-patent intellectual property, equipment and other related tangible assets.  In connection with this proposed sale, NNL also expects to grant the purchaser a non-exclusive license of relevant patent intellectual property.

Nortel has filed a motion seeking the establishment of a Section 363 sale procedure with the United States Bankruptcy Court for the District of Delaware that will allow qualified bidders to submit offers for the Packet Core Assets.  A similar motion for the approval of the sale procedure will be filed with the Ontario Superior Court of Justice.  Any sale would be subject to approval by the U.S. and Canadian courts.

As previously announced, Nortel Networks Corporation does not expect that its common shareholders or the preferred shareholders of NNL will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

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