Nortel
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TSX : NT

Nortel

September 20, 2005 08:00 ET

Nortel Teams with Industry Leaders to Expand Market Reach of SIP Services

BOSTON--(CCNMatthews - Sep 20, 2005) -

Aastra Technologies Limited, CounterPath Solutions, Inc., Eyeball Networks, Renesas Technology Corp. and VTech Communications Support Open Client Strategy

Nortel (NYSE:NT) (TSX:NT), a global leader in SIP technology, is accelerating mass deployment of VoIP and multimedia services through new relationships with industry leaders in SIP-based technologies.

Aastra Technologies Limited, CounterPath Solutions, Inc. (formerly Xten Networks, Inc) (OTCBB:CTPS), Eyeball Networks, Renesas Technology Corp., and VTech Communications Inc. will join more than 120 companies, including previously announced Arcturus Networks Inc., i3 micro technology, NETGEAR and Polycom, Inc., who are currently working with Nortel to promote industry-wide SIP adoption.

These companies will focus on bringing to market SIP technology and products that are interoperable with Nortel's Multimedia Portfolio, expanding the availability of voice over broadband consumer and business applications and devices. The new consumer products will include set-top boxes and softphones for home-based broadband voice services and software applications that extend multimedia services to wireless devices. The new business products will include cordless and desktop IP phones.

"Nortel is making it possible for service provider customers to penetrate key consumer, retail and business markets in profound new ways," said Alan Stoddard, general manager, Carrier Multimedia Networks, Nortel. "When leaders in consumer networking technologies team with Nortel to deliver open, standards-based solutions, it creates a powerful catalyst for mass deployment of new SIP-based multimedia services. With SIP, service providers can harness the power and ubiquity of IP to create innovative new services that combine elements from telephony and other Web applications like e-mail, messaging, presence and video streaming."

Nortel is currently conducting interoperability testing with Aastra Technologies' 9112i, 9133i, 480i, 480i CT series of IP phones; CounterPath Solutions' eyeBeam Softphone for MAC OS X and Windows PCs; i3 micro technology's Vood series of IP residential gateways; NETGEAR's TA612V residential VoIP gateway and MTA1; Polycom's SoundPoint IP 301, 501, 601 and SoundStation IP 4000 phones, and VTech's 4106 VoIP Terminal Adapter. These devices will be awarded certificates after completing laboratory SIP interoperability testing with Nortel's MCS 5200. Additional information on awarded Certificates of Compatibility, software releases and products tested can be found on the Nortel Developer Program Web site.

Nortel has also awarded a Certificate of Compatibility for a collaborative VoIP reference platform based on Renesas Technology's SH7710 SuperH® series microprocessor with a middleware stack from Arcturus Networks. This is the first VoIP reference platform to be certified by Nortel. This reference design can support a wide range of configurations and form factors for original equipment manufacturers (OEM) such as VTech. The VTech 4106 is one of the first products brought to market using this combined Nortel interoperable solution.

Eyeball Networks is developing MCS interoperability into its SIP products, including the Eyeball Anti-SPIT Server, Eyeball Soft Phone, and Eyeball SDK. Eyeball Networks and Nortel are planning to conduct interoperability testing soon.

Nortel ranked number one in the global markets for service provider softswitches and gateways for the entire year of 2004 and for the first quarter of 2005, according to Synergy Research Group. Nortel is providing VoIP and multimedia solutions to many of the world's leading service providers, including Bell Canada, Charter Communications, Cox Communications, OneConnect, Rogers Communications, SaskTel, Verizon, and VIVO in Brazil.

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; stock market volatility generally and as a result of acceleration of the settlement date of Nortel's forward purchase contracts; 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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