Lithuania

Nortel, World leader in GSM-R Technology, Delivers European Railway Communications Compatibility, Enhancing Passenger Safety

January 29, 2008 -- VILNIUS, Lithuania – Lithuanian Railways has chosen a Nortel* [NYSE/TSX: NT] wireless communications network solution to enhance its railway communications and ensure compatibility of the Lithuanian national railway with international railway standards. Nortel's partner, Belam, is acting as the local partner for the implementation and construction of the project which will be completed in 2010.

The €50.5 million (€59.6 million including VAT) contract includes the implementation of a GSM-R radio communication system along more than 1,563 kilometres (approximately 88% of the country's rail network) of Lithuania's rail routes. This is the first GSM-R network implementation in the Baltic region. The project is partially funded by the European Community Cohesion Fund for European regional development.

European Union member Lithuania is the first of the Baltic countries to deploy a GSM-R solution.