August 30, 2005 09:00 ET

Enhanced Multimedia Solutions from Nortel Designed to Improve Employee Productivity, Enable Secure, Reliable Communications; Multimedia Communication Solutions to Help Foster Innovation

SANTA CLARA, Calif.--(CCNMatthews - Aug 30, 2005) -

Nortel (NYSE:NT)(TSX:NT) has introduced new and enhanced IP multimedia solutions designed to help enterprises extend the 'virtual workplace' through converged, reliable and media-rich secure communications.

As companies rely more on virtual teams for their expertise and diversity, a new environment called the 'virtual workplace' has emerged. The virtual workplace offers solutions that allow employees working across countries and time zones to collaborate more effectively.

According to Nemertes Research, a virtual workplace can save enterprises money while increasing "enterprise agility," the ability to adapt quickly to changing business conditions. By using virtual workplace technologies, companies can also see substantial cost savings - roughly US$40,000 per employee - from reducing the number of employees that need to be relocated or replaced for geographical reasons, Nemertes research shows.

"Virtual workplace technologies can reduce facilities and personnel costs, improve customer responsiveness, and enable companies to react faster to business drivers," said Melanie Turek, senior vice president and founding partner, Nemertes Research.

"For most companies, cost reductions and cutbacks have done little to fuel real growth in either sales or revenues," said Malcolm Collins, president, Enterprise Networks, Nortel. "Increasing worker productivity and innovation represent the best paths to business growth."

"At Nortel, our focus is providing multimedia communication capabilities that increase employee productivity and drive innovation," Collins said. "Our new IP multimedia solutions are designed to make it possible for employees to collaborate and work more effectively. The results are a more collaborative environment, increased worker productivity and the ability to be much more responsive to customer needs."

Nortel's new converged IP multimedia solutions are designed to deliver secure, multimedia communications to all workers, in or out of the office, thus helping enterprises increase productivity and reduce costs. These new solutions include:

-- the Nortel IP Phone 1100 Series, which features advanced capabilities including high-resolution displays for graphical content presentation along with USB and Gigabit Ethernet capabilities. Nortel is introducing three new models: the IP Phone 1110, IP Phone 1120E, and IP Phone 1140E, each designed to deliver sophisticated telephony features and applications.

-- Nortel WLAN Handset 2212, which offers enterprises fast access to people and applications with one, easy-to-use handset that provides secure access to critical databases, remote control of equipment, Internet access, and send and receive messages.

-- Secure Multimedia Controller 2450, which as part of Nortel's award-winning convergence security portfolio is designed to help ensure that productivity-enhancing applications and converged infrastructure are always available and secure.

-- Multimedia Communications Server (MCS) 5100 Release 3.5, which provides new ways for users to communicate in real-time in addition to its current breadth of services - IM with dynamic presence, IM chat, audio and video conferencing, Web collaboration, personalized communication and other collaboration tools.

-- CallPilot Release 4.0 Unified Messaging suite, including new features to improve user productivity. These include an IM integration feature that allows users to respond to voice and e-mail messages with an IM session. Users can also view presence icons to determine the availability of the sender and then initiate an interactive session with the click of a mouse.

-- Communications Server 1000 Release 4.5, a feature-rich enterprise call server software package that supports up to 15,000 users per server and can be deployed in centralized or distributed collaborative enterprise environments.

-- Survivable Remote Gateway 50, which allows users at remote sites to communicate more effectively by providing access to all of the features and applications available to users at the main site.

Nortel's existing multimedia communication solutions have already been adopted by a wide range of customers, including British Telecom (BT), Saskatoon Public School Board, House of Blues, Credit Valley Health, and Erlanger Health System.

"Our business is highly competitive so security is of great importance, as is our ability to share ideas across all of our locations," said Howie Gold, House of Blues Concerts Canada. "Those competing requirements are not simple to achieve, but we've been able to strike the right balance. The net result and our key focus is our ability to provide a unique and wonderful experience for our customers. House of Blues uses Nortel IP multimedia solutions to provide key communication features and applications to their many businesses around the world.

"Keeping our employees connected with our customers and providing timely service is critical to our business," said Stuart Rollinson, consultant engineer for BT, which already users Nortel CallPilot 4.0 for unified messaging that enables flexible, simplified communications.

"Thanks to the Enhanced Desktop Messaging features introduced with CallPilot 4.0, such as Call Directory and Message Forwarding, our employees now have the ability to use unified messaging in ways that will help them become more efficient," Rollinson said. "BT employees can access their messages from any location around the globe, keeping them connected and productive from any location."

Nortel convergence solutions drive competitive advantage, increase productivity and enhance the customer experience. More information can be found at

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 For the latest Nortel news, visit

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, and any related potential dilution of Nortel's common shares; 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 control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including 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 Nortel's and NNL's public filings; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 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; increased consolidation among Nortel's customers and the loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; 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 and consolidation 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 of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; 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; any undetected product defects, errors or failures; 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 and Quarterly Report on Form 10-Q 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 and the Globemark are trademarks of Nortel Networks.

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