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Nortel

December 12, 2007 06:00 ET

U.S. Army Re-Ups with Nortel Government Solutions for Application Services

Seeks Improved Leadership Information Sharing Under US$15 Million Task Order

WASHINGTON, DISTRICT OF COLUMBIA--(Marketwire - Dec. 12, 2007) - The U.S. Army Information Management Support Center (IMCEN) has awarded Nortel Government Solutions(1) subsidiary AC Technologies a task order for application development and management services expected to help improve information sharing for the Army's senior leadership.

This could be worth more than US$15 million over three years assuming all options are exercised. It calls for Nortel Government Solutions, a U.S. company wholly owned by Nortel(1) (TSX:NT)(NYSE:NT), to continue defining and implementing Microsoft(1) Office SharePoint(1) Server 2007 applications for U.S. Army Headquarters.

These applications are used by the Office of the Secretary of the Army, the Office of the Army Chief of Staff, Army Headquarters staff and designated support agencies.

"Information sharing is important to the Army's senior leadership," said Chuck Saffell, chief executive officer of Nortel Government Solutions, which has provided application development services to IMCEN since an initial contract award in June 2005. "We're honored to be playing a role in supporting this program and the Army worldwide."

The task order also includes continuing development, maintenance and end-user support for applications such as the Army's worldwide publications ordering system and automated methods for requesting and managing headquarters' staff network accounts.

About Nortel Government Solutions

Nortel Government Solutions is a network-centric integrator, providing the services expertise, mission-critical systems and secure communications that empower government to ensure the security, livelihood, and well being of its citizens. Headquartered in Fairfax, Va., Nortel Government Solutions offers a one-stop shop for solutions designed to improve workforce productivity, reduce operating costs, and streamline inter-agency communications. Please visit www.nortelgov.com for more information.

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 business including: significant competition, competitive pricing practice, cautious capital spending by customers, 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; any material, adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong; the sufficiency of recently announced restructuring actions; any negative developments associated with Nortel's suppliers and contract manufacturing agreements including our reliance on certain suppliers for key optical networking solutions components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Nortel's current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Nortel's efforts to expand internationally; potential additional valuation allowances for all or a portion of Nortel's deferred tax assets if market conditions deteriorate or future results of operations are less than expected; a failure to protect Nortel's intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; any negative effect of a failure to maintain integrity of Nortel's information systems; changes in regulation of the telecommunications industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy;
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(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. Nortel Government Solutions and the Nortel Government Solutions logo are trademarks of Nortel Government Solutions Incorporated. Microsoft and SharePoint are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

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