Nortel
NYSE : NT
TSX : NT

Nortel

April 16, 2007 09:01 ET

Nortel Unveils 'My Business' Campaign for North America

Offers Efficiency and Flexibility to Small and Medium Businesses

TORONTO, ONTARIO--(CCNMatthews - April 16, 2007) - Nortel(1) (TSX:NT)(NYSE:NT) today introduced its 'My Business' campaign, featuring a robust set of training and demand generation initiatives for its partners and an innovative set of solutions designed to provide big business functionality for small- and medium-sized businesses (SMBs).

Drawing on 20 years of experience meeting the needs of SMBs, Nortel's new campaign addresses the challenges faced by today's SMB customers, who have the same business needs as larger enterprises but are more limited in their resources. My Business offers packages including integrated voice and data, mobility, and unified messaging, which are built specifically for SMBs. A full complement of installation, operations, administration, maintenance, and technical support services are available to further facilitate the adoption of these communications solutions.

Nortel's My Business solutions are being implemented by AT&T as part of its Flexible Reach service. John Regan, vice president, business marketing, AT&T said, "Together, Nortel's My Business solutions and AT&T's Flexible Reach service will simplify our SMB customers' communications systems so that they can concentrate on running their business rather than spending their valuable resources on managing their infrastructure."

"Our new My Business solutions, which span a broad range of SMB technology needs, are designed to grow with business demands while maximizing return on investment," said Net Payne, vice president, North American Marketing, Nortel. "The My Business campaign focuses on providing SMB customers with flexible and scalable solutions that lay the foundation for future unified communications capabilities."

Allied Advertising, Public Relations Boston headquarters is currently equipped with voice and data through Nortel's Business Communications Manager 400 (BCM400) and is rolling-out BCM50 and BCM200 as part of a My Business package to meet the specific needs of its 22 remote locations and larger offices across North America. Brian Weir, director of technical services, Allied Advertising said, "Nortel understands the challenges my business faces each day and my need for reliable communications that can grow with my company's demands. Nortel's new packages will enable me to build on our existing technologies to create a base for VoIP now and grow with enhanced services in the future."

Nortel's sales and distribution partners can offer SMBs custom configurations with robust promotions and incentives as well as enhanced IP Telephony and data packaged solutions supporting four to 50 users. Also available are: an online SMB Quote Builder, available mid-May, to simplify the ordering process; a new web-based SMB Coach Tool for on-demand solution proposals; flexible service options to complement the reseller's own capabilities; and a comprehensive suite of demand generation initiatives, marketing tools, and training programs.

"Nortel's My Business campaign offers SMBs an efficient, cost-effective migration path to full IP-based systems," said Dennis Nally, vice president of sales, Summatis Communications, a Nortel channel partner. "With Nortel's BCM portfolio as the foundation of the packages, our customers can meet the challenges of keeping a dispersed workforce connected, control costs and provide employees secure network access anywhere, anytime. These are the choices my SMB customers require. By partnering with Nortel, I can easily meet my customer needs."

Based on the award winning BCM product line and complementary data portfolio, Nortel's promotions and incentives for custom solutions are available now. The My Business packages, available in mid-May, will provide a wide range of options for reliable IP telephony, with resilient enterprise-class switching, wireless LAN, security, VPN and quality of service capabilities through self-manageable LAN and WAN starter kits. My Business packages will also enable SMBs to adopt IP phones on their own timetable with innovative VoIP Gateway Trunking software that will support hybrid IP/TDM environments. New capabilities, like call routing based on employee skills and built-in productivity applications like unified messaging, will help boost customer productivity, while optional services will be available to complement partner service offerings.

More information about Nortel's SMB Solutions can be found at www.nortel.com/mybusiness.

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. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following
(i) risks and uncertainties relating to Nortel's restatements and related matters including: Nortel's most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel's existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel's material weaknesses in internal control over financial reporting resulting in an inability to report Nortel's results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel's remedial measures; Nortel's inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel's below investment grade credit rating and any further adverse effect on its credit rating due to Nortel's restatements of its financial statements; any adverse affect on Nortel's business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel's restatements; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures;
(ii) risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; any material and adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel's operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel's supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objective; additional valuation allowances for all or a portion of its deferred tax assets; Nortel's failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel's failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and
(iii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: the impact of Nortel's most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel's publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel's common shares. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K/A, 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.

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