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Nortel

March 18, 2008 06:00 ET

Social Security Confirms Nortel Government Solutions for World's Largest VoIP

New System Will Expand, Improve Services for 'Baby Boomers'

WASHINGTON, DISTRICT OF COLUMBIA--(Marketwire - March 18, 2008) - The U.S. Social Security Administration(2) (SSA) has confirmed selection of a team led by Nortel Government Solutions(1) to deploy one of the world's largest enterprise VoIP networks under the 10-year, US$300 million Telephone Systems Replacement Project(2) (TSRP).

The SSA selected Nortel Government Solutions, a U.S. company wholly owned by Nortel(1) (TSX:NT)(NYSE:NT), in July 2007 because its solution offered the best value. Deployment was delayed pending resolution of a competing bidder protest.

TSRP is expected to expand and improve services for an anticipated influx of new users, including retiring 'baby boomers.' It will include a centrally managed contact center solution with carrier-class unified messaging and interactive voice response (IVR) capable of supporting 55,000 field office agents. This will provide a common, more friendly 'look and feel' for users and faster, more efficient call handling through skills-based routing that matches each caller's inquiry to the most appropriate agent.

The SSA also expects its new VoIP network to help consolidate monthly public network service charges, decrease operating and maintenance costs, and establish a platform for future services.

"SSA has confirmed its initial assessment that our combination of software, services, government contracting expertise and world-class Nortel products offers the best value for this project," said Chuck Saffell, chief executive officer, Nortel Government Solutions. "We've committed the necessary resources to meet SSA's aggressive deployment schedule and we're eager to get started."

Core network rollout begins immediately and is expected to be complete within 180 days. The schedule calls for replacement of existing telephone systems in 205 of the SSA's nearly 1,600 field offices in the first year and another 500 per year after that. The contract also includes network integration operation, maintenance, user support and training.

The new SSA VoIP network will feature Nortel's Communication Server 1000 switching, Media Processing Server 500 IVR, unified messaging solution with Unified Messaging 2000 core platform and CallPilot(1), and IP Phone 1100 Series handsets.

The Nortel Government Solutions team includes General Dynamics, Black Box Network Services, Shared Technologies, York Telecom, High Wire Networks, NetIQ, NETCOM Technologies and Pal-Tech.

Nortel Government Solutions is also involved in a number of major VoIP transitions for U.S. Government customers worldwide, including the Department of Veterans Affairs, the Department of Energy, the U.S. Senate, the Department of Transportation, the U.S. Air Force and other elements of the Department of Defense.

About Nortel Government Solutions

Nortel Government Solutions is a network-centric integrator, converging IT services and communications to help government ensure the security, livelihood, and well being of its citizens. Headquartered in Fairfax, Va., Nortel Government Solutions offers a one-stop shop for solutions designed to improve workforce productivity, reduce operating costs and streamline inter-agency communications. Please visit www.nortelgov.com for more information.

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, the Globemark and CallPilot are trademarks of Nortel Networks. Nortel Government Solutions and the Nortel Government Solutions logo are trademarks of Nortel Government Solutions Incorporated.

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

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