BEIJING--Feb. 2, 2005--Volkswagen Group China (VW China), the leading car manufacturer in the China market, has deployed at its new headquarters in Beijing a Gigabit Ethernet solution from Nortel designed to provide improved employee communications at lower costs through a high-performance local area network (LAN).

The network supports enhanced communications and collaboration for up to 400 employees. It includes a suite of advanced data and voice services including Internet Protocol (IP) telephony, fast and secure access to the corporate data center, high-speed Internet access, file sharing and multimedia collaborative tools.

Designed to provide the highest levels of network performance, security and reliability, Nortel's Gigabit Ethernet LAN solution connects the switches and servers throughout VW China's new headquarters building, including Data Center database and application servers.

"Nortel is gratified to be able to support VW China in meeting their business objectives with our high-performance, reliable and secure networking infrastructure," said Stephen Tsui, president, Enterprise Networks, Greater China, Nortel. "Our solution provides the capability to deliver voice, data and multimedia services over the same platform. This not only positions VW to increase workforce efficiency, but also to drive reduced operating costs with a simplified network structure and ease of manageability."

Nortel has been supplying data networking solutions to Volkswagen for more than a decade, providing strong support to VW's business across European and Asian markets with industry-leading Ethernet switching, security and network management products.

The Gigabit Ethernet solution is designed to ignite global commerce by providing the capability to connect more closely with customers and partners and among employees. It is also planned to enhance the human experience with the ability to share IP multimedia, thus allowing people to communicate across many devices via their preferred means.

VW China has deployed Nortel's Ethernet Routing Switches 8600, 8300 and 5510 (formerly known as Passport 8600, Passport 8300 and BayStack 5510) to provide Gigabit Ethernet connectivity to the network. Nortel's Ethernet Switching is designed to support mission critical applications with the required intelligence, performance, security and reliability from the network edge through the core, allowing enterprises to achieve better productivity and enhanced user satisfaction.

About Volkswagen Group China

Volkswagen was one of the first international carmakers to venture into China. The first car producing joint venture Shanghai Volkswagen was founded in 1984; in 1990 the joint venture agreement for FAW-Volkswagen was signed. Currently Volkswagen is present in China with 15 corporate entities, among them the vehicle-producing joint ventures Shanghai Volkswagen and FAW-Volkswagen in China's northeastern city of Changchun. Together with its imported cars the model range in China includes the brands Volkswagen, Audi, Skoda, Bentley and Lamborghini. Further information can be found at www.volkswagen.com.cn.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel 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.

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