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Nortel

October 24, 2005 09:00 ET

Nortel PEC Solutions to Support Critical Communications for CDC; State-of-Art Facility to Feature Reliable, Flexible Nortel Gear

WASHINGTON--(CCNMatthews - Oct 24, 2005) -

Nortel PEC Solutions announced today that the Centers for Disease Control and Prevention (CDC) in Atlanta will rely on highly reliable voice solutions from Nortel (NYSE:NT) (TSX:NT) for mission critical communications in its recently opened, multi-billion dollar facility.

Nortel PEC Solutions is a Nortel subsidiary focused on high-end government solutions and services.

CDC is the principal agency in the United States government for protecting the health and safety of all Americans. Its new Atlanta campus is considered a bellwether for similar government facilities for its innovative incorporation of advanced technology and security features into a design that caters to employee well-being and desire for a 'livable' work environment.

Nortel PEC Solutions is working closely with the CDC to develop a voice communications infrastructure made 99.999 percent reliable with Nortel Communications Server 1000, a full-featured, server-based IP PBX.

As part of the project, Nortel PEC Solutions will also supply Nortel IP 2050 softphones and headsets. When employees are in the field or cannot reach the CDC campus in the event of an emergency, the IP softphones will be able to transform their laptops into full-featured telephony communications platforms.

"The members of the executive team at the CDC are forward thinkers who understand that flexible communications are critical for them to succeed in fulfilling their mission, particularly during times of disaster," said Chuck Saffell, chief executive officer, Nortel PEC Solutions. "The Atlanta campus will become a model for other government agencies looking to keep their employees connected daily and during times of crisis."

The Nortel solution will serve almost all of the CDC's 9,000 employees, including about 6,000 in the Atlanta area. The Nortel PEC Solutions implementation will provide CDC employees with the tools necessary to measure and manage their time as well as their communications.

About Nortel PEC Solutions

Nortel PEC Solutions is a trusted partner for governments in supporting the livelihood, security, and well-being of their citizens. Nortel PEC Solutions delivers a comprehensive portfolio of technology and high-end services capable of meeting the demands of the most complex and important systems in the world. Headquartered in Fairfax, Virginia, Nortel PEC Solutions engineers, deploys and manages mission-critical solutions for government, including homeland security, criminal justice and intelligence, defense and civilian agencies within the U.S. Federal Government and at state and local levels. Please visit www.nortelpec.com for additional information.

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, 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; general stock market volatility; 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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