[Deployment of core network solutions, part of the radio access infrastructure and field trials to be Nortel's contributions.]

Frankfurt, Germany -- T-Mobile International, a subsidiary of Deutsche Telekom [NYSE: DT], has selected Nortel Networks [NYSE/TSE: NT] to supply Wireless Internet infrastructure equipment and services, estimated to be worth US$320 million, for build out of its third generation (3G) UMTS (Universal Mobile Telecommunications System) networks across Europe.

Subject to execution of a definitive agreement, Nortel Networks will deploy core network solutions and a portion of the radio access infrastructure for T-Mobile's planned UMTS networks. Nortel Networks will also set up UMTS field trials for T-Mobile, which expects to offer commercial UMTS service beginning in 2002.

"With our choice of preferred suppliers, we have not only laid the cornerstone for a uniform UMTS network within the TMO group, we have also assured the delivery of high-quality UMTS equipment at the earliest possible date," said Kai-Uwe Ricke, chief executive officer, T-Mobile International (TMO).

"This is another sign that the marketplace is embracing our Wireless Internet strategy, and a great way to crown our UMTS success in Europe this year," said Pascal Debon, president, Europe, Middle East and Africa (EMEA), Nortel Networks. "With strong market presence in key western European countries, Nortel Networks continues to grow its leadership position in the 3G wireless market."

Nortel Networks has now announced UMTS awards estimated to be worth more than US$2.1 billion year-to-date, including BT Cellnet in the United Kingdom, Airtel and Xfera in Spain, and AT&T Wireless in the United States.

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