Nortel
TSX : NT
OTC Bulletin Board : NRTLQ

Nortel

May 20, 2009 06:00 ET

Nortel Technology Innovation Drives Enterprise Speed, Simplicity

Capital and Operational Savings Enabled via New Products of Data Portfolio

TORONTO, ONTARIO--(Marketwire - May 20, 2009) - Nortel(1) (TSX:NT)(OTCBB:NRTLQ) today introduced new data products that are faster, more secure and less expensive than competing solutions, and are specifically designed to support the needs of today's real-time business applications.

Nortel's diverse portfolio of new products allows enterprises to build networks that are more efficient and effective. The latest advancements in technology and techniques, energy-efficient hardware, and innovative features all feed into the creation of a network that minimizes capital equipment and costs, optimizes all available resources, and reduces operational burden and expense while providing the foundation for unified communications.

"Nortel's relentless drive to create innovation on all fronts - in technology, in products, in energy efficiency and with their customers is why we continue to deploy and recommend their voice and data solutions. Nortel offered us the architecture, the management and the economic model to achieve resiliency, ease-of-use and cost effectiveness," said Pierre-Eric Belzile, executive director, Information and Communication Technology, Montreal Canadiens(2).

"Our commitment to our customers is unwavering. We are continuing to innovate and deliver the solutions that improve the cost structure, functionality and reliability of enterprise networks," said Joel Hackney, president, Enterprise Solutions, Nortel. "We remain at the vanguard of solving customers' problems and meeting their needs with solutions built for speed, reliability and value. To that end, we are introducing a number of new products purpose-built to support the future of communications."

New Solutions Drive Customer Momentum

Built for real-time applications, Nortel's data portfolio enables enterprises to simplify and increase the tempo of their operations. Based on Nortel's data foundational principles of resiliency, efficiency, performance, security, and multivendor solutions, the company unveiled new products to streamline operations to help give businesses a competitive advantage. These build on Nortel's trend of delivering innovation into its recently refreshed data portfolio - third-party proven to provide 20 times the performance, seven times the resiliency at up to half the total cost of ownership(3) of competing solutions.

The Virtual Services Platform 9000 (VSP 9000) is Nortel's latest high-performance, next-generation, core data network solution. Offering twice the performance of competing solutions(4), It is purpose-built for mission-critical campus networks and data centers that require ultra-reliability, flexibility, and virtual network services. The VSP 9000 enables enterprises to realize the efficiencies of a simplified infrastructure that can virtualize elements of the network to fully and efficiently utilize servers as well as the network capabilities, reducing the strain on personnel and resources. (Please see companion announcement, Nortel Unveils Next-Gen Core Enterprise Network Solution).

Augmenting the company's line of Secure Routers is the Nortel Secure Router 2330, which delivers integrated routing, WAN, security and voice gateway services for small and mid-size branches. The new, cost-effective 2330 platform, along with Nortel's Secure Router 4134, also supports survivable SIP services, crucial for IP telephony deployments where voice communications must be ensured in the case of IP WAN or voice call server failures.

"As a global, leading-edge manufacturer, the reliability of our network is critical to our day-to-day operations. Nortel has served us well to date with their portfolio and we are excited about the prospects of Nortel's Secure Router 2330. We see this platform giving us new deployment options with its cost-effective modular design and integrated voice capabilities," said Steven Lee, network engineer, National Semiconductor.

Unified Communications Management (UCM) is a new Nortel solution that consolidates management, configuration, operations and deployment of UC solutions to provide more centralized, integrated control of voice and data infrastructure. The UCM solution centralizes management of heterogeneous network assets to simplify network operations, which results in lower costs and a more effective unified communications system.

Kevin Harshaw, senior director, Olympic Operations for Bell explained the importance of the UCM portfolio: "Given the critical nature of running the Vancouver 2010 Olympic and Paralympic Winter Games(2), Bell must be able to effectively manage and proactively respond to issues before they impact network performance. Nortel's Visualization Performance and Fault Manager, with its configurable polling, trap reporting and notification features, allows us to do just that. Not only does it provide a centralized, UC management solution that helps discover and connect infrastructure equipment and end-nodes throughout the network, but it also helps us reduce operating expenses. Its robust management features make it a key element in allowing Bell to deliver flawless network coverage for the Games."

Nortel's Unwired Enterprise vision centers around the new Wireless Local Area Network 8100 (WLAN 8100) series of routers. This solution will provide seamless integration of wired and unwired network elements to help create a more seamless communications experience for IT managers and end users. Based on the 802.11n protocol, the solution combines the latest industry standards with a truly unified architecture - resulting in lower total cost, greater capacity, performance and coverage - as well as a simplified infrastructure that delivers secure, universal mobility.

Carol Barber is executive director and chief technology officer for the Western New York Regional Information Center, an organization that in conjunction with the Boards of Cooperative Education Services, serves nearly 100 school districts in New York State and supports more than 95,000 computers: "The Western New York Regional Information Center has been a Nortel WLAN customer for many years, and we are excited about their next-generation WLAN 8100 solution. We plan to trial this exciting new technology in our network later this year," Barber said. "When Nortel first released its vision of the Unwired Enterprise, it really hit home with us. Their strategy for true wired and wireless integration resonates with our view of where the market is heading."

Nortel's recently launched Ethernet Routing Switch 5600 is the first solution to reach terabit speeds for stackable switches. The switches offer more bandwidth capacity, greater performance and increased resiliency than competitive solutions. Increased port density and greater stacking capabilities also add to the value-proposition, as fewer switches are required.

In addition, the company recently introduced the Nortel Secure Router 8000 Series to provide feature-rich IP routing, flexible wide-area networking and carrier-class reliability. Designed for enterprise data centers, and core and head-end routing applications, this solution delivers the high-performance, resiliency and security that enterprises need to meet growing bandwidth demands.

Demonstrating the company's leadership in comprehensive network access security solutions, Nortel also recently launched its Identity Engines portfolio. Providing network identity management, the Identity Engines solution augments Nortel's existing Network Access Control (NAC) technology by adding a new set of capabilities including enterprise-wide 802.1X support, reporting, identity-aware networking and centralized policy decision across LAN, WLAN and VPN. Identity-based network access control restricts access to the network, services and applications based on the user, time of day, health of the device, network access method and other variables in an automated, centralized environment.

"Complexity costs enterprises more than related expenses, it also robs them of productivity, effectiveness and the ability to meet their business case," said Hackney. "Nortel has been at the forefront in delivering unified communications solutions, so it is highly appropriate that we would continue to innovate to deliver the solutions that operate with greater performance, reliability and control than other solutions."

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings 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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

(2)This is a 3rd party link as described in our Web linking practices.

(3)The Tolly Group Report Number 208298, July 2008, reported the results of a power consumption evaluation of six Nortel converged data network products consisting of large and medium core and wiring closet Ethernet Routing Switches (ERS), enterprise branch office routers, and IP phones compared to similar Cisco products on the basis of power consumption and heat dissipation, and five-year operational cost. See also The Tolly Group Report Number 208275, January 2008, and Info-Tech Research Group Report (January 30, 2008).

(4)The performance comparison is based upon Nortel's model VSP 9000 product which achieves throughput of 970 Mpps through ten output slots, in comparison to Cisco's model 7010 product which achieves throughput of 480 Mpps through eight output slots, as reported on the product data sheet on Cisco's publicly available website. "The performance comparison is based upon Nortel's model VSP 9000 product which achieves throughput of 1,700 Mpps through ten output slots per chassis running in network high availability mode using Nortel's Switch Clustering feature for both Layer 2 and/or Layer 3 traffic flows, in comparison to Juniper's model EX 8208 product in high availability mode which achieves throughput of 970 Mpps and does not have a feature similar to Nortel's Switch Clustering, but rather depends on Layer 3 protocols such as OSPF with ECMP to load balance only Layer 3 IP traffic flows, as reported on the product data sheet on Juniper's publicly available website.

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