Nortel

Nortel

March 08, 2005 09:02 ET

Nortel Teams with Industry Leaders in Consumer Networking to Accelerate Mass Deployment of VoIP, Multimedia Services


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE SYMBOL: NT
TSX SYMBOL: NT.TO

MARCH 8, 2005 - 09:02 ET

Nortel Teams with Industry Leaders in Consumer
Networking to Accelerate Mass Deployment of VoIP,
Multimedia Services

TORONTO--(CCNMatthews - Mar 8, 2005) -

Nortel (NYSE:NT) (TSX:NT), a global leader in Session Initiation
Protocol (SIP) technology, continues to accelerate mass deployment of
voice over IP (VoIP) and multimedia services through new strategic
relationships with industry leaders in SIP-based access devices, data
networking products and wireless clients.

Arcturus Networks, Inc., D-Link Corporation, Inc., Grandstream Networks,
Inc., NETGEAR, SIPquest, Sipura Technology, Inc., and TABLETmedia will
join previously announced Texas Instruments, i3 Micro, Polycom and
Uniden as participants of Nortel's collaborative open client initiative
to promote industry wide SIP adoption.

As part of Nortel's open client strategy, these companies will focus on
bringing to market Nortel-interoperable SIP products to expand the
availability of voice over broadband consumer applications and devices.
The new consumer products will include analog terminal adapters and
routers for home-based broadband voice services and software
applications that extend multimedia services to wireless devices.

"Nortel is enabling communication services that profoundly enhance the
human experience by giving people more choice and control in the ways
they communicate," said Jim Dondero, marketing vice president, Carrier
Packet Networks, Nortel. "When giants in the consumer networking space
team with Nortel to deliver open, standards-based solutions, it creates
a powerful catalyst for mass deployment of new SIP-based multimedia
services and consumer adoption."

D-Link and NETGEAR, industry-leading providers of consumer networking
products, will integrate Nortel's SIP specification into devices that
provide voice and data services over wired and wireless broadband
connections for homes and small offices. D-Link has implemented this
capability into its DVG-G1402S Broadband Phone Service VoIP Router and
is currently engaging in interoperability testing in Nortel's labs.
NETGEAR also intends to make its TA612V product interoperate with Nortel
solutions. These solutions from D-Link and NETGEAR enable standard
phones to be used for voice over broadband and are readily available
from major electronic retailers, making consumer access simple and easy.

Sipura Technology and Grandstream, leaders in SIP-based access devices,
have already implemented Nortel's MCS SIP specification into products
that connect phones and other analog devices to VoIP networks. Sipura's
SPA-2000 Analog Terminal Adaptor, which is in deployment with
OneConnect, has received a Nortel certificate of compatibility for
achieving interoperability with Nortel's voice over IP and multimedia
communications solutions. Grandstream has also successfully tested its
Handytone 486 Analog Terminal Adaptor with Nortel's MCS 5200.

AOL Canada, which recently announced deployment of its new AOL®
TotalTalk™ VoIP service, is using Nortel SIP technology and the
Grandstream Handytone 486.

"One of the key requirements for our new VoIP service was for it to be
based on an open platform using industry standards," said Steve Koles,
GM, AOL Enhanced Services for AOL Canada Inc. "It is important that we
provide our members with an enhanced online experience and a wide
variety of choices."

Arcturus Networks Inc., a leading provider of embedded Residential
Gateway firmware, will offer Nortel-interoperable software combined with
semiconductor reference designs for a wide range of VoIP enabled
products. This initiative will make it easier for manufacturers to build
SIP-based devices that interoperate with Nortel's VoIP and multimedia
communications portfolio.

The expansion of the open client strategy program also includes wireless
application pioneer TABLETmedia. TABLETmedia's iFon™ software
application, which can transform a wireless LAN (WLAN)-capable PDA or
smartphone into a powerful converged voice, video conferencing and
messaging tool, will also be compatible with Nortel specifications.

Nortel is also working with SIPquest, a leading developer of SIP-based
IP Telephony software applications and technology, to enable service
providers to deliver advanced SIP-based multimedia services to
residential and corporate customers over wireless handheld devices.

In addition, Nortel is announcing availability of a new tool to
accelerate multimedia services deployment to personal computers. The
Nortel Theme Developer Kit (TDK) provides an easy way for service
providers to customize the Nortel multimedia PC client interface. TDK
has been licensed and is being used by multiple services providers to
deploy exciting new voice and video messaging services to customers.

Vendors wanting to participate in Nortel's industry-wide SIP initiative
can request access to and licensing of the MCS documentation suite by
completing an application available on the Nortel Developer Program Web
site.

Nortel ranked #1 in the global markets for both service provider
softswitches and gateway ports for the third quarter of 2004, according
to Synergy Research Group, In-Stat/MDR and the Dell'Oro Group. Nortel is
a worldwide leader in delivering SIP innovation with customers and
allies like Bell Canada, Charter Communications, Dacom, Erlanger Health
System, the FedEx Institute of Technology at the University of Memphis,
the University of Michigan, Monster, OneConnect, SBC, SaskTel, Sungard,
TeliaSonera, Texas A&M University and Verizon Communications.

Nortel's Multimedia Communications Portfolio, including both MCS 5100
and MCS 5200, delivers advanced multimedia and collaborative
applications through the same commercially available hardware and
open-standards software. This portfolio delivers the scale and
functionality necessary for both enterprises and service providers to
address their target markets. It transforms the way users communicate by
enabling next generation tools that improve productivity and facilitate
ubiquitous access to communications services.

Nortel will be demonstrating its Carrier VoIP and Multimedia Service
solutions at the VON (Voice on the Net) 2005 Conference & Expo at the
San Jose (Calif.) Convention Center (booth #809) March 7-10.

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 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. AOL and TotalTalk are trademarks of America Online.

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