Nortel

Nortel

March 23, 2005 04:00 ET

Nortel Enhances Consistent, Secure Mobile Access to Business Applications; New WLAN Portfolio Optimized for Voice, Multimedia, Converged Applications


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

MARCH 23, 2005 - 04:00 ET

Nortel Enhances Consistent, Secure Mobile Access to
Business Applications; New WLAN Portfolio Optimized
for Voice, Multimedia, Converged Applications

SANTA CLARA, Calif.--(CCNMatthews - Mar 23, 2005) -

Nortel (NYSE:NT)(TSX:NT) is delivering the next step in a comprehensive
vision for enterprise mobility that enables users to have a consistent,
reliable and secure mobile experience no matter what they are doing,
what device they are using, or where they are.

Nortel's ability to provide true mobility for customers is strengthened
by the introduction of a broadened portfolio of wireless local area
network (WLAN) products, including capabilities and features developed
in concert with Trapeze Networks.

The new Nortel WLAN 2300 Series is designed to support delivery of
high-quality voice, data and multimedia applications - establishing the
wireless LAN as the primary means of business communications. Nortel's
industry-leading total cost of ownership model and unprecedented ease of
deployment and management provide the next step toward a
fully-integrated wireless and wireline portfolio.

"Professionals expect to connect in a reliable and secure manner
regardless of whether they are using a cell phone, a PDA, WLAN, or an IP
phone," said Aaron Vance, senior analyst, Synergy Research Group.
"Nortel has deep bench strength in wireless, and this new relationship
will help customers simplify management and lower overall costs.
Moreover, this strategy of embedding wireless capabilities into wireline
products is clearly in-line with the direction that the industry is
heading."

"Our mobility vision is designed to enhance the human experience and
help our customers to be more productive and agile," said Malcolm
Collins, president, Enterprise Networks, Nortel. "With Nortel mobility
solutions, customers can deliver secure, converged network services
virtually indistinguishable from the capabilities available using a
wired infrastructure. Introducing this new portfolio helps us to offer
our leading wireless solutions across the full spectrum of customers
from service providers and global enterprises to small businesses."

"In this rapidly changing space, Nortel will continue to lead the
industry by embedding wireless capabilities in our wired products to
make true mobility a reality for enterprise customers," Collins said.
"We will deliver applications and services in the most convenient and
efficient manner to help all customers drive productivity and decrease
total cost of ownership."

A key element of this vision, the new WLAN portfolio consists of the
WLAN 2300 series to address the mobility needs of all customer segments,
ranging from small- and medium-sized businesses to large enterprises and
service providers. Its scalability allows the mobility solution to grow
as customers grow, expanding to encompass new users and applications
while protecting the initial investment. The focus is on providing a
common experience for users, regardless of the device and whether they
access the network by wired or wireless connection.

The new WLAN 2300 series is a flexible WLAN solution that delivers:

-- Improved Performance, afforded by features and resiliency designed
for delivering high-quality voice and multimedia applications over a
WLAN.

-- Lower Total Cost of Ownership, enabled with fewer networking
elements to deploy and manage.

-- Increased deployment flexibility, as the WLAN 2300 series is
optimized for mobile use with any device - WLAN Handset, Mobile Voice
Client, Blackberry handheld device, handheld PC - and its ability to
scale from supporting just a few access points to thousands of access
points across multiple networks.

-- Superior management, enabled with advanced operations support and
granular monitoring and reporting tools.

-- Strong security, with industry-leading security measures designed in
each element and the WLAN architecture.

Hundreds of millions of people around the world rely on Nortel for
wireless communications for both business and personal use. Nortel was
the industry's first supplier of wireless networks operating in all
advanced radio technologies and is the only end-to-end provider of all
next generation wireless solutions.

Nortel's ability to provide secure and seamless mobility for voice, data
and integrated multimedia applications with its WLAN solution for
business received the SuperQuest award at both SUPERCOMM 2003 and 2004.

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 April 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 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 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 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. BlackBerry is a trademark of Research In Motion Limited.

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