March 07, 2005 07:30 ET

Nortel and SIPquest Bring SIP-Based Multimedia Services to Wireless Devices; Phase-One to Add Presence, Instant Messaging, and Network-Based Directory and Call Logs




MARCH 7, 2005 - 07:30 ET

Nortel and SIPquest Bring SIP-Based Multimedia
Services to Wireless Devices; Phase-One to Add
Presence, Instant Messaging, and Network-Based
Directory and Call Logs

SAN JOSE, Calif.--(CCNMatthews - Mar 7, 2005) -

Nortel* (NYSE:NT)(TSX:NT) and SIPquest, a leading developer of Session
Initiation Protocol (SIP) based IP Telephony software applications and
technology, are working together to enable service providers to deliver
advanced SIP-based multimedia services to residential and corporate
customers over wireless handheld devices.

The companies will initially focus on delivering advanced capabilities
such as Presence and IM for services delivered to handhelds such as the
RIM's Blackberry, Sony-Ericcson P900, and other smartphones. Using
SIPquest's IMS cellular client, a soft client residing on the handheld
device, and Nortel's Multimedia Communication Server (MCS) 5200, service
providers will be able to deliver value-added services and
productivity-enhancing tools to cellular users.

SIPquest and Nortel are demonstrating these capabilities at Spring VON
in San Jose this week (Nortel booth #809, SIPquest booth #527).

This relationship builds on the strength of both companies. SIPquest is
known as a pioneer in SIP-based technologies for corporate users. The
company has already developed software dubbed 'disruptive' by analysts
in the area of WiFi networks. Nortel is a global leader in enabling
service providers to deliver a rich suite of multimedia and
collaboration services that can be seamlessly integrated with existing
telephone services. Moreover, both companies believe in open solutions
based on industry standards.

"Service Providers will be able to take advantage of network convergence
and deliver, under their own brand, new and innovative multimedia
services to their customers," said Alain Mouttham, SIPquest CEO. "This
is an initial step in enhancing the user experience. As the market
evolves, we anticipate bringing cellular and WiFi client solutions
together to provide dual-mode functionality and a seamless end-user

"Both companies share a vision of transforming networks, enhancing the
human experience, igniting global commerce and improving security," said
Jim Dondero, vice president of Carrier Packet Networks marketing,
Nortel. "Today's announcement is an important first step in delivering
profoundly powerful communications to end-users, providing a level of
control and personalization from a handheld device not yet experienced.
We will work with SIPquest to evolve these capabilities even further."

Nortel's MCS 5200 seamlessly integrates voice with video, collaboration,
and presence services and enables service providers to deliver hosted
multimedia communications services to create new revenue-generating
opportunities. These SIP-based next generation, multimedia services
enhance the ability for both enterprise and consumer end-users to
communicate and collaborate more effectively and efficiently.

SIPquest's Wireless Collaboration Client is an intuitive application
that allows the end-user to quickly access capabilities such as
Presence, Instant Messaging and advanced call routing capabilities. It
can be rebranded and customized to allow service providers to deliver
services valued by the end-user.

About SIPquest

SIPquest ( is a technology pioneer with specific
expertise in Session Initiation Protocol (SIP). By embedding or bundling
SIPquest SIP-based software products with their own products, telecom
and datacom equipment vendors are able to take advantage of the growing
demand for IP Telephony services and capabilities. SIPquest's
application and component suite includes IP-based audio conferencing,
video conferencing, data conferencing, application sharing, instant
messaging, presence, a multimedia collaboration agent, voice mail, auto
attendant, a SIP to H.323 signaling converter, an extensible SIP server
and mobile WiFi roaming and collaboration capabilities. SIPquest is
committed to expanding the use of SIP technologies through an exclusive
licensing agreement with Columbia University's Internet Real-Time Lab
and Professor Henning Schulzrinne, Chief Scientific Advisor to SIPquest
and co-author of SIP. Located in Ottawa, Canada, SIPquest has the most
complete and advanced suite of Session Initiation Protocol (SIP)
software modules and components on the market.

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; 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 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 is a trademark of Nortel Networks. All other trademarks are
properties of their respective owners


Contact Information

    Nancy Fontanne, 613-254-8886 ext. 262