Nortel
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TSX : NT

Nortel

September 19, 2007 16:13 ET

Nortel Appoints Joel Hackney as President Enterprise Solutions

Joe Flanagan to lead Global Operations

TORONTO, ONTARIO--(Marketwire - Sept. 19, 2007) - Nortel(1) (TSX:NT)(NYSE:NT) President and Chief Executive Officer (CEO) Mike Zafirovski today announced the appointment of Joel Hackney as President, Enterprise Solutions, effective immediately. This appointment reflects Nortel's stated objective of accelerating the strong momentum in its Enterprise business.

"Joel Hackney is a high-energy, results-oriented leader with a proven track record of leading and growing businesses. He is widely recognized for operational excellence and speed of execution," said Zafirovski. "Joel is absolutely the right person to further accelerate the momentum in Nortel's Enterprise business that will be noticeable to customers, channel partners - and our competition."

"Now is the time for Nortel to take its Enterprise to the next level, build on our momentum and take a stronger leadership position in the market. Joel and the team will push the Enterprise business to new heights by leveraging world-class partnerships with companies like Microsoft and IBM, as well as the leading technology innovations that are gaining rapid traction in the market," said Zafirovski.

Over the past year, Nortel has built a solid base for its Enterprise business. As previously reported, second quarter 2007 revenues were $590 million, representing an increase of 23 percent over the same period last year, and the fourth consecutive quarter of year-over-year growth.

"The industry is in need of choice in the Enterprise market - real competition that will drive new innovation and meet rapidly changing customer needs," said Hackney. "We will increase our investments in Enterprise and accelerate our pace of execution. We will create best-in-class, go-to-market capability. And we will deliver solutions that make it much simpler for our customers to seize the opportunities of a hyperconnected world. Stay tuned!"

In his previous role, Hackney was Nortel's Senior Vice President, Global Operations and Quality. In addition to his Nortel experience, he has 14 years of global leadership experience at GE, including leadership of a billion dollar product division with 7,000 employees.

After two decades of service to the Company, Steve Slattery, the incumbent President of Enterprise Solutions, has decided to leave the company, effective Oct. 1. The Company thanks Steve for his valuable contribution to its CDMA, Wireline and Enterprise businesses over the years and wishes him much success in his future endeavors.

Joe Flanagan Appointed Senior Vice President Global Operations

Flanagan, who was previously the Vice President, Global Fulfillment, has been appointed Senior Vice President, Global Operations and will be charged with driving world-class results in the company's customer satisfaction, supply chain and order management operations.

"Over the past year, Joe has made important progress simplifying customer order placement with "touchless" orders, improving billing timeliness, standardizing process and metrics, and building a future-state supply chain architecture," said Zafirovski. "In his new and expanded role, he will accelerate the pace of change and make an even stronger contribution to Nortel's execution capabilities and operational excellence. The mandate is critical to our turnaround, and the leader we have chosen a proven results-driven executive."

Hackney, Flanagan and the operations organization have made significant progress advancing Nortel's business transformation initiatives, including more than 100 Lean Six Sigma projects, and have spearheaded Nortel's improvements in quality and responsiveness. With a strong leadership team in place, Flanagan will build on the strong progress made to date and accelerate the pace of progress in Global Operations.

In addition to his accomplishments at Nortel, Flanagan is a skilled leader with 13 years experience at GE where he held positions of increasing responsibility, including the General Manager of Operations for GE Consumer & Industrial in Europe, Middle East and Africa (EMEA).

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 from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, 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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