Nortel

Nortel
BellSouth Corporation

January 31, 2005 09:00 ET

BellSouth Chooses Nortel Contact Center and Speech Solutions; Migrates 22 Contact Centers to Next Gen Technology to Better Serve Customers


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

AND BELLSOUTH CORPORATION

NYSE SYMBOL: BLS

JANUARY 31, 2005 - 09:00 ET

BellSouth Chooses Nortel Contact Center and Speech
Solutions; Migrates 22 Contact Centers to Next Gen
Technology to Better Serve Customers

DALLAS--(CCNMatthews - Jan 31, 2005) -

The telephone operating subsidiary of BellSouth Corporation (NYSE:BLS)
has selected enhanced IP contact center and speech solutions from Nortel
(NYSE:NT)(TSX:NT) for deployment in 22 locations across nine states.
According to recent Frost & Sullivan market research, Nortel has
designed and deployed over 200 speech applications for automating and
improving routine business functions in more than 16 countries.

"BellSouth needed a comprehensive solution that could provide
skill-based routing, e-mail, chat and other multimedia and collaboration
applications," said Richard Burns, vice president - centers and
operations support, BellSouth. "Nortel is able to provide this in a
cost-effective manner that allows us to better serve our customers."

BellSouth is migrating to Nortel's latest Internet Protocol (IP) contact
center solution to create versatile, end-to-end customer contact centers
to better serve its customer base of more than 21 million access lines
and 2 million DSL customers and BellSouth Long Distance, Inc.'s 6
million long-distance customers. BellSouth is also migrating its Nortel
Meridian 1 solution to software version 4.0 of the Communications Server
(CS 1000) IP PBX platform to provide increased scalability and
flexibility, providing a choice of migration paths to an IP multimedia
environment and improved customer service. Nortel's Symposium portfolio
is a diverse suite of customer interaction solutions for customer
contact centers.

The ability to migrate gracefully to IP is a critical capability of
Nortel's IP Contact Center, enabling companies to leverage the benefits
of IP Telephony without having to overhaul or purchase completely new
communications infrastructures. Customers can use the Symposium Call
Center Server with CS 1000 to leverage the power and performance of
convergence.

"This agreement builds on Nortel's continued strong relationship with
BellSouth," said Roxann Swanson, vice president and general manager,
enterprise multimedia applications, Nortel. "For more than 22 years,
BellSouth has deployed Nortel solutions spanning voice and data
products."

The award-winning Symposium suite enables businesses to take advantage
of powerful capabilities like skill-based routing, comprehensive
management and reporting, and real-time displays to enhance the human
experience, resulting in stronger, more profitable relationships.

About BellSouth

BellSouth Corporation is a Fortune 100 communications company
headquartered in Atlanta, Georgia and a parent company of Cingular
Wireless, the nation's second largest wireless voice and data provider.

Backed by award winning customer service, BellSouth offers the most
comprehensive and innovative package of voice and data services
available in the market. Through BellSouth Answers®, residential and
small business customers can bundle their local and long distance
service with dial up and high speed DSL Internet access, satellite
television and Cingular® Wireless service. For businesses, BellSouth
provides secure, reliable local and long distance voice and data
networking solutions. BellSouth also offers online and directory
advertising through BellSouth® RealPages.com® and The Real Yellow
Pages®.

More information about BellSouth can be found at www.bellsouth.com.

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.

Certain information included in this press release is forward-looking
and is subject to important risks and uncertainties. The results or
events predicted in these statements may differ materially from actual
results or events.

Factors which could cause results or events to differ from current
expectations include, among other things: the outcome of regulatory and
criminal investigations and civil litigation actions related to Nortel's
restatements and the impact any resulting legal judgments, settlements,
penalties and expenses could have on Nortel's results of operations,
financial condition and liquidity; the findings of Nortel's independent
review and implementation of recommended remedial measures; the outcome
of the independent review with respect to revenues for specific
identified transactions, which review will have a particular emphasis on
the underlying conduct that led to the initial recognition of these
revenues; the restatement or revisions of Nortel's previously announced
or filed financial results and resulting negative publicity; the
existence of material weaknesses in Nortel's internal controls over
financial reporting; the impact of Nortel's and NNL's failure to timely
file their financial statements and related periodic reports, including
breach of its support facility and public debt obligations and Nortel's
inability to access its shelf registration statement filed with the
United States Securities and Exchange Commission (SEC); ongoing SEC
reviews, which may result in changes to our public filings; the
potential delisting or suspension of Nortel's and NNL's publicly traded
securities; the impact of management changes, including the termination
for cause of Nortel's former CEO, CFO and Controller in August 2004; the
sufficiency of Nortel's restructuring activities, including the work
plan announced on August 19, 2004 as updated on September 30, 2004,
including the potential for higher actual costs to be incurred in
connection with restructuring actions compared to the estimated costs of
such actions;

cautious or reduced spending by Nortel's customers; fluctuations in
Nortel's operating results and general industry, economic and market
conditions and growth rates; fluctuations in Nortel's cash flow, level
of outstanding debt and current debt ratings; Nortel's ability to
recruit and retain qualified employees; the use of cash collateral to
support Nortel's normal course business activities; the dependence on
Nortel's subsidiaries for funding; the impact of Nortel's defined
benefit plans and deferred tax assets on results of operations and
Nortel's cash flow; the adverse resolution of class actions, litigation
in the ordinary course of business, intellectual property disputes and
similar matters; Nortel's dependence on new product development and its
ability to predict market demand for particular products; Nortel's
ability to integrate the operations and technologies of acquired
businesses in an effective manner; the impact of rapid technological and
market change; the impact of price and product competition; barriers to
international growth and global economic conditions, particularly in
emerging markets and including interest rate and currency exchange rate
fluctuations; the impact of rationalization in the telecommunications
industry; changes in regulation of the Internet; the impact of the
credit risks of Nortel's customers and the impact of customer financing
and commitments; stock market volatility generally and as a result of
acceleration of the settlement date or early settlement, which is
currently not available, of Nortel's forward purchase contracts; the
impact of Nortel's supply and outsourcing contracts that contain
delivery and installation provisions, which, if not met, could result in
the payment of substantial penalties or liquidated damages; and the
future success of Nortel's strategic alliances.

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

Nortel, the Nortel logo, the Globemark, Symposium, Meridian and Meridian
1 are trademarks of Nortel Networks.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Nortel
    Jennifer McClain, 972-684-4844
    email: jmcclain@nortel.com