Nortel
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Nortel

August 22, 2005 09:00 ET

Tulalip Tribe Deploys Nortel Converged Network to Power Tribal Expansion; Network Infrastructure Provides IP Multimedia Capabilities

SEATTLE--(CCNMatthews - Aug 22, 2005) -

The Tulalip Tribe has deployed a converged network solution from Nortel (NYSE:NT)(TSX:NT) to provide a strategic communications foundation supporting the tribe's current and future development efforts for its mid-Puget Sound area community.

Working in conjunction with Tulalip Data Services (TDS), Nortel has provided data, voice and multimedia solutions for businesses in the tribe's new Seattle Premium Outlet Mall. These new capabilities have formed a foundation for extending leading-edge, high-bandwidth networking capabilities to local government, businesses and residents of the Tulalip community.

"Much of our progress in the business realm is predicated on our ability to collaborate and share information in the most meaningful way, regardless of whether that is via voice, e-mail, instant messaging, videoconferencing or access to our knowledge management systems," said Dr. Bill Erdly, project director, TDS. "This network provides that, but more importantly, it enables our tribe to provide collaborative IP multimedia capabilities to the people, agencies and companies that are a part of our community,"

"Our ability to derive revenue and provide exemplary customer services from this deployment at the new Seattle Premium Outlet mall is a great first step," Dr. Erdly said. "We are looking forward to using this solution for future strategic integration of our tribe with our local government, the business community, residents and other tribal communities."

"We are very pleased to be working with the Tulalip Tribe to help improve communications with and among their government agencies, businesses and the community," said Malcolm Collins, president, Enterprise Networks, Nortel. "Ultimately, our goals are focused on providing the means to improve the community with more flexible communications that enhance the ability to share information and ideas. Designed to enhance the human experience, Nortel's solutions are planned to enable communications best-suited to meet our customer's needs, instead of forcing a customer's business case to meet their networking capabilities."

Tulalip's network from Nortel delivers voice, data, video and multimedia capabilities to support current needs while providing easy expansion to meet future requirements without new infrastructure. In addition, the Tulalip Casino, which currently uses a Nortel IP Telephony solution, will integrate IP multimedia capabilities that will allow casino patrons to receive promotions based on their customer status. These promotions, such as discounts, will be made available via multimedia kiosks in the casino and are planned to be redeemable in the mall.

Based on the carrier-grade resilience of Nortel Ethernet Switch 8600, the network provides the Tulalip Tribe with industry-leading uptime, performance and scalability. Because the network employs Nortel Optical Metro 3500 and 3100 for fiber connectivity, it is capable of very high-bandwidth services and application delivery.

The Tulalip Tribe is located on the federally-recognized reservation in the Puget Sound area of Washington State. The Tribe serves as the local municipal government that provides services on the reservation, including housing, health and dental care, education, land leasing, utilities, marine moorage and cable television. The Tribe also serves the local business community, residents, the Tulalip Casino and the Quil Ceda Creek Nightclub and Casino.

About Tulalip Data Services

Tulalip Data Services (TDS) is responsible for networking infrastructure, government and business systems integration, health informatics, digital preservation of cultural knowledge, and general knowledge management strategies. These projects are part of a comprehensive strategy defined by the Tulalip Board of Directors to ensure economic development, quality social/health/government services and education for tribal members and regional community partners. TDS focuses on the necessary technology infrastructure and computing services to support this goal. TDS is a community partnership between the Tulalip Tribes and the University of Washington, Bothell that emphasizes educational opportunities and career development for its employees. For further information, please visit www.tulalipdata.com.

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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