Nortel
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TSX : NT

Nortel

January 30, 2007 09:02 ET

Nortel Tailors Solutions to Make VoIP as Easy as 1-2-3

New Customers Benefit from Pre-Packaged VoIP Solutions

TORONTO, ONTARIO--(CCNMatthews - Jan. 30, 2007) - Nortel(1) (TSX:NT) (NYSE:NT) is living up to its Business Made Simple approach with the introduction of new VoIP packages that provide new customers with a ready-to-use solution allowing them to implement features and advanced unified communications faster than ever before. New customers can now take advantage of the IPT 1-2-3 program that previously focused on upgrading current Nortel customers.

Businesses that did not previously have VoIP capabilities can now choose from a range of tailored solutions from Nortel providing rich, new multimedia services such as Web-enabled multimedia contact centers, unified messaging, presence and remote PC-based call management.

New customers have the option of selecting from VoIP packages using Nortel's Communication Server 1000. Each package contains a Unified Communications Starter Kit as well as the hardware and software necessary to get a location equipped with a full-featured IP telephony (IPT) system.

For companies such as Bally Technologies, a Las Vegas firm at the forefront of the gaming device and casino system industry and employing over 1,500 people, finding a solution that would maximize network efficiency while reducing capital and operating costs was a painstaking endeavor.

"We had a telecommunications decision to make," said Matthew Alden, IT manager, Bally Technologies. "Do we continue business as usual or upgrade 20 global facilities to VoIP by replacing with a Nortel solution or another competitor's solution? After working closely with Nortel we realized that the Nortel migration path from TDM to VoIP and the long-term vision to unified communications was the right business decision. Also, the Nortel solution was much less disruptive to our day-to-day global business activities and was much less expensive than the competitor's path. Since our migration, the addition of three new U.S. and International offices has proven to be a very simple process."

Nortel is leading the way for companies like Bally to benefit from a VoIP solution. Converging voice and data over IP has been proven to maximize network efficiency, streamline architecture, reduce capital and operating costs, and create new service opportunities.

Customers are finding out that Nortel's new pre-packaged and pre-configured solutions provide unmatched value and cost savings. Freddie Mac, one of the nation's largest investors in residential mortgages, is committed to finding value for its customers and its shareholders.

"Nortel offered a VoIP solution that was extremely cost effective," said Milton Moore, CTO, Freddie Mac. "We upgraded from TDM to VoIP in the branch offices and deployed over 10,000 VoIP phones. The migration was so effective that we are now moving towards a fully integrated IP environment that will prepare us for advanced unified communications."

According to Dell'Oro's IP Telephony Enterprise Report 3Q06, Nortel's line shipments topped 1.8 million during the quarter, maintaining its number one position in line shipments. Nortel's IPT 1-2-3 program had a positive influence on 3Q North America sales as it simplified the sales process for the small and medium business (SMB) channels.

"Each package is a field-proven configuration benefiting from years of rigorous testing and subsequent enhancements," said Net Payne, vice president, North America Marketing for Nortel. "Added to that, the new service packages are simple to quote, purchase, and implement. The result is reduced installation time and hassle which ultimately benefits the bottom line for the customer."

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following
(i) risks and uncertainties relating to Nortel's restatements and related matters including: Nortel's most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel's existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel's material weaknesses in internal control over financial reporting resulting in an inability to report Nortel's results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel's remedial measures; Nortel's inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel's below investment grade credit rating and any further adverse effect on its credit rating due to Nortel's restatements of its financial statements; any adverse affect on Nortel's business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel's restatements; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures;
(ii) risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; any material and adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel's operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel's supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; additional valuation allowances for all or a portion of its deferred tax assets; Nortel's failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel's failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and
(iii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: the impact of Nortel's most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel's publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel's common shares. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K/A, Quarterly Reports on Form 10-Q and other securities filings 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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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