Israel's CET Selects Nortel Converged IP Solution to Enhance Learning

    Business Editors/Technology Editors

    AIRPORT CITY, Israel--(BUSINESS WIRE)--May 4, 2005--Israel's Center for Educational Technology (CET) has selected Nortel (NYSE:NT) (TSX:NT) to deliver enhanced telephony and high-speed, broadband data services over a converged IP (Internet Protocol) infrastructure for its new complex. CET is a non-profit organisation dedicated to advancing the learning and teaching experience in Israel.
    Nortel's solutions, which will be integrated by Nortel channel partner Bynet Data Communications, are expected to help CET reduce network operating costs through a more efficient communications infrastructure. This infrastructure will improve services for such educational initiatives as distance learning, virtual classrooms and resource centres, as well as support enhanced resource websites and use of chat rooms to enhance the human experience. CET's faculty and staff will also benefit from unprecedented seamless mobility with 'anytime, anywhere' network access to integrated telephone, voice mail, e-mail, fax and data services.
    Nortel will also manage CET's communications centre, which coordinates all educational content provided to the Israeli Ministry of Education including learning software, informative websites and educational films.
    "For CET, this is undoubtedly a technological breakthrough that will offer numerous opportunities for improving efficiency, such as enabling users to collaborate from home free of charge via an IP infrastructure as well as send and receive faxes from their personal computers," said Yakov Cohen, chief information officer, CET. "In addition, Nortel's converged IP solution will eliminate the need for separate connections to a telephony network and an IP network, enable call routing from room to room without charge, and of course allow significant savings in our telephony costs."
    "CET's selection of our solutions provides Nortel with a rewarding opportunity to assist the effort to advance the quality of education in Israel," said Sorin Lupu, president, Israel, Poland and South Eastern Europe, Nortel. "By implementing the most cutting-edge technology Nortel has to offer, CET will not only be positioned to reap the benefits of highly reliable mobile communications over a cost-effective network, but also to enhance the learning experience for everyone involved in this important endeavor."
    Nortel's comprehensive solutions for CET will include Nortel Communication Server 1000, which provides the benefits of a converged network with built-in reliability, business continuity and support for business-critical applications; Nortel 2002 and 2004 IP phones and 2050 software phones; Nortel CallPilot unified messaging for combined voice mail, e-mail and fax messages; and Nortel Optivity Network Management System, offering one single management system for wired and wireless, voice and data converged networks.
    Nortel will also provide CET with a local area network (LAN) based on Nortel's Ethernet Routing Switch 8600, which combines high performance and security while supporting high-speed connectivity; and Nortel Ethernet Switches 460 and 470, enabling highly-resilient Power over Ethernet capability to power IP phones and wireless access points while maintaining connectivity to standard 10/100 Mbps Ethernet PCs and servers.
    Collectively, these solutions will also position CET to capitalise on its network for future multimedia communication services.

    About CET

    CET - the Center for Educational Technology is dedicated to improving Israel's educational system by integrating new technologies in teaching, learning and evaluation, developing new pedagogic concepts, tools, strategies and innovative and groundbreaking products in the field of education and information.
    CET is a non-profit organization founded in 1971, with highly experienced development teams representing an assortment of expertise in various fields of knowledge (mathematics, reading skills, languages and sciences).
    CET's website is located at www.cet.ac.il.

    About Bynet Data Communications

    Bynet Data Communications is a leading company in Israel in the field of data communications, telecommunications and computing. Bynet Data Communications specializes in marketing products and solutions and in project integration for customers in all sectors of the Israeli industry. Its expertise includes consulting, design, marketing, installation and maintenance of equipment and systems, with ISO-9001:2000 certification. Uniquely, Bynet is the only integrator in Israel that provides end-to-end computing and communications solutions.

    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 breach of its support facility and public debt obligations and 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 our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; 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 or early settlement, which is currently not available, 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; 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, the Globemark, CallPilot and Optivity are trademarks of Nortel Networks.

    Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.

--30--BD/da*

CONTACT: Nortel Angelika Kempf, +44 1628 43 7340 angelika.kempf@nortel.com or Orit Ben-Harush, +972 8 914 3491 orit.ben-harush@nortel.com

KEYWORD: TEXAS ISRAEL INTERNATIONAL AFRICA/MIDDLE EAST INDUSTRY KEYWORD: EDUCATION TELECOMMUNICATIONS NETWORKING HARDWARE SOFTWARE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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