Nortel
TSX : NT
OTC Bulletin Board : NRTLQ

Nortel

June 11, 2009 07:00 ET

Ziggo Selects Nortel to Bring IP Telephony to Businesses in The Netherlands

Nortel's Industry-Leading Business VoIP Solution Enables Ziggo to Expand into SMB Market

TORONTO, ONTARIO--(Marketwire - June 11, 2009) - Ziggo, the largest cable operator in the Netherlands, has selected an IP-Powered Business solution from Nortel* (TSX:NT)(OTCBB:NRTLQ) to help them launch advanced business voice services for small and medium businesses (SMBs).

Ziggo has enjoyed considerable success in the consumer telecommunications market in The Netherlands and now Nortel will assist them to expand into the SMB market with a pre-tested, end-to-end solution. The Nortel IP-Powered Business solution is specifically designed to help provide SMBs with all the standard telephony features that a business needs over a secure, reliable, and cost-effective IP-based system. IP-Powered Business can also be used to provide SMBs with advanced VoIP services such as 'click-to-call,' 'find me/follow me' capabilities and audio conferencing.

"For small and medium sized businesses, communications enhancements can lead to improvements in productivity, customer service, and overall efficiency," said Arthur Lightart, manager, Voice Management, Ziggo . "However, many SMBs just don't have the in-house resources or expertise to manage a complicated telephony system so we at Ziggo wanted to offer them a simple way to meet all of their voice communications needs without over-extending their budgets. Nortel's IP-Powered Business solution allows us to do that by providing advanced VoIP services in a package that is flexible and scalable to meet any customer's needs."

"The industry is seeing more and more SMB's look to carrier-hosted solutions as their preferred scenario for VoIP services," said Samih Elhage, president, Carrier VoIP and Application Solutions, Nortel. "With Nortel's IP-Powered Business voice and multimedia solution, carriers like Ziggo can take advantage of this trend in SMB spending. In addition to offering VoIP capabilities, Nortel's solution can allow service providers to offer cost-effective multimedia applications and services such as fixed mobile convergence and unified communications to SMBs. Nortel's solution also includes a suite of marketing and sales tools that help carriers effectively reach this unique market."

The Nortel solution for Ziggo makes use of the company's existing converged IP cable infrastructure.Using Nortel's Communication Server 2000 (CS 2000) and SIP technology, Ziggo can deliver advanced IP Telephony to companies using PBX technology by offering a carrier-hosted solution, or to companies that do not use PBX through a business trunking solution. Integrated with Patton VoIP gateway, Nortel's solution allows companies to retain their TDM PBX and migrate to SIP PBX at their own pace. This simplicity and flexibility allows SMBs to preserve their current equipment investments and upgrade in the most cost-effective way possible.

"The CS2000 will be integrated into the existing Ziggo network to provide efficient call routing and it will also enable Ziggo to rapidly enter the SIP business trunking market and offer Hosted IP Telephony services depending on market demand," added Tijs Hulsbergen, senior account manager, Nortel Carrier Businesses, Nortel.

Recently published reports from Dell'Oro Group and Infonetics Research ranked Nortel as the worldwide leader with the largest revenues in the carrier softswitch market for the first quarter of 2009. Nortel has shipped more than 110 million Carrier VoIP and Multimedia ports to over 340 wireline and wireless carriers globally. In addition, Nortel provides VoIP solutions to two thirds of IDC's worldwide listing of top 20 carriers (by revenue).

About Nortel (in Administration)

Nortel was placed into Administration on 14 January 2009 and it continues to trade on a business-as-usual basis while it reviews its options to recover or restructure. Nortel has announced it is confident that the products and services it supplies will continue to be supported without impacting customers for the foreseeable future. Ernst & Young are the joint administrators for 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.

* Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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