Nortel Delivers 'Office Anywhere' Mobility Solutions; Customers, Enh

Nortel Delivers 'Office Anywhere' Mobility Solutions; Customers, Enhanced Solutions Drive Nortel's Mobility Momentum

    Business Editors/Technology Editors

    SANTA CLARA, Calif.--(BUSINESS WIRE)--April 19, 2005--Nortel (NYSE:NT) (TSX:NT) today announced enhancements to its mobility solutions designed to accelerate the Company's leadership in mobile communications. With new applications and solutions, Nortel makes it possible for workers to take their 'Office Anywhere' through reliable, secure mobile access to business applications wherever they are.
    Nortel's Office Anywhere mobility solutions build on the strong foundation of the Virtual Enterprise, designed to allow dispersed employees to collaborate as effectively as though they were in the same office, regardless of physical location. The solutions further the graceful mobility evolution demonstrated by recent mobility announcements with Research In Motion and on the company's broadened wireless local area networking (WLAN) 2300 portfolio for enterprises of all sizes. Office Anywhere solutions are planned to deliver secure remote access, unified communications and collaborative applications across indoor and outdoor WLANs, cellular networks and wired networks to allow workers to increase their productivity whether at home, on the road, or roaming around a business campus.
    Industry-leading mobile communications enabler Research In Motion (RIM) (Nasdaq:RIMM) (TSX:RIM) has teamed with Nortel to deliver enterprise solutions. Systems integrators including Computer Science Corporation (CSC) are using Nortel's mobility solutions to provide new services to customers, while leading companies including arvato systems, Goldsmith Agio Helms, Salins du Midi, VeriSign, and Rusk County, Wisconsin, are already embracing Nortel's 'Office Anywhere' approach.
    Nortel has been positioned in the 'leader quadrant' in the Unified Communications Magic Quadrant(a), based on Nortel's vision and ability to execute on the vision. Published by research and advisory firm Gartner, Inc., vendors listed in the leader quadrant are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market.
    "It's essential for companies to provide employees with the tools necessary to measure and manage their time as well as their communications," said Steve Blood, research vice president, Gartner. "Accessing business applications in real time is just as important for mobile workers."
    Nortel has introduced the following new platform capabilities that deliver unified communications to mobile workers, helping enterprises realize the benefits of an efficient, globally-dispersed workforce:

--	Multimedia Communications Server (MCS) 5100 Release 3.5 delivers voice, call management and instant messaging to a mobile workforce. The MCS BlackBerry device soft client enables a BlackBerry device user to communicate or to respond to voice calls using instant messaging. In addition, the client enables mobile users to see the status of their instant messaging contact list.
--	CallPilot Unified Messaging Release 4.0 delivers enhanced e-mail capabilities, allowing voice messages to be embedded within e-mail, and real-time message notifications to mobile workers via their BlackBerry device or handheld.
--	Nortel's SSL VPN (Secure Socket Layer Virtual Private Network) Net Direct capability provides mobile workers full network access to internal business applications and services, including IP (Internet Protocol) telephony and multimedia, from SSL-enabled Web devices like computers, cell phones and PDAs. Nortel's SSL VPN also provides secure access to partners and customers without having to deploy and support traditional VPN access, requiring specific clients, devices, locations and designated networks.

    Companies interested in experiencing Nortel's "Office Anywhere" solutions can take part in the MCS 5100 Hosted Evaluation Program, which provides a free 60-day MCS trial. The evaluation allows customers to test-drive the powerful collaboration and multimedia capabilities that enable employees to communicate via the most effective means available, regardless of where they are or how they communicate. Companies interested in participating should visit: www.nortel.com/promotions/mcs_eval/index.html.
    "We share Nortel's vision of delivering the means for employees to be more productive and companies to be more competitive by enabling employees to access wireless enterprise applications that enhance personal and organizational workflow," said Mark Guibert, vice president, Corporate Marketing, Research In Motion. "Our relationship with Nortel is focused on enabling mobility in the enterprise and providing employees with a means of business communications that gives them freedom from their desks."
    "Nortel's mobility solutions enable the enterprise to operate efficiently outside of physical boundaries and are designed to ensure both telecommuters and road warriors have the same level of access and mobility they would in an office environment," said Malcolm Collins, president, Enterprise Networks, Nortel. "Nortel is enhancing the human condition by continuing to drive the development of applications on business devices to facilitate the 'Office Anywhere' concept. Enterprises are taking advantage of Nortel's unique mobility solutions, which is a testament to our commitment to enabling communications anytime, anywhere."
    Customers are driving increased productivity through Nortel's mobility solutions.
    VeriSign operates secure, intelligent infrastructure services for the Internet and telecommunications networks and maintains the Internet directory for all .com and .net top-level domains. The company uses the Session Initiation Protocol (SIP) and mobility capabilities of Nortel's MCS 5100 to provide employees with a single phone number that works in the office, on the road and in other regions and countries, affording seamless availability.
    "VeriSign is known for providing reliable, secure services with high availability," said Ken Silva, chief security officer, VeriSign. "We need to ensure that our customers are constantly able to communicate with us, no matter where their primary representative is located."
    Goldsmith Agio Helms, a private investment banking firm, relies on the ability of its investment bankers to communicate seamlessly with clients, prospects, and among themselves while continuously on the move.
    "It isn't practical to expect our people to be able to provide the meaningful and comprehensive level of service our clients expect if they are only able to work at their desks," said Christopher T. Ferski, director, Information Technology, Goldsmith Agio Helms. "Our people travel extensively, and based on our research and selection process, we found there was no other mobile solution that met or exceeded our requirements like the Nortel solution does. Using the mobility solutions from Nortel, our clients will be able to reach our people when needed, regardless of where they might be and what other activities in which they may be engaged."
    Salins du Midi, one of Europe's major salt producing companies, recently deployed a mobility solution from Nortel to broaden remote access to its network and allow employees to communicate with high security and reliability in real time, regardless of location. Using Nortel's MCS 5100, the new Salins du Midi network provides highly secure and reliable access to voice, video and multimedia applications anywhere, anytime for enhanced productivity, collaboration and mobility.
    Rusk County, Wisc., through a grant from the United States Department of Agriculture, is piloting Nortel's MCS 5100 and SIP protocol structure with the goal of addressing rural telemedicine. "Rural hospitals and health services in remote areas experience difficulties in providing the same level of health care as those located in major metropolitan areas," said Shirley Van Dam, director, Home Healthcare Services, Rusk County, Wisc. "The focus is to demonstrate that virtual nursing, on-site instrumentation and measurements, rapid multimedia communications, timely information, human resource sharing and reliable feedback to all participants can radically improve home healthcare medical applications, even in a remote, resource-limited rural environment like ours."
    Computer Sciences Corporation has teamed with Nortel to deliver Xtended Office, a secure mobility solution. "Nortel's vision of mobility is wide ranging and allows for people to work efficiently almost anytime and anywhere," said Steve Langford, director, Global Network Service Offerings, CSC. "At CSC we have worked in partnership with Nortel to deliver the XtendedOffice, a focused mobility solution for Enterprises, providing secure remote access for employees based upon Nortel Secure VPN products supporting IP Telephony and Unified Messaging. XtendedOffice is a part of CSC's collaborative enterprise mobility suite and we expect to continue working with Nortel to introduce new service offerings in the areas of Multimedia Collaboration and Fixed Mobile convergence."
    Nortel makes its 'Office Anywhere' easy to implement with services offered by channel partners and Nortel Global Professional Services including:

    -- Market Characterization - Nortel and partners evaluate the
    added services and benefits of teleworking in the dynamic
    environment particular to a customer's industry, including
    identifying new paths to profitability and market
    differentiation that teleworking may offer.

    -- Network Assessment - evaluation of network capabilities and
    operational resources for remote access.

    -- Network and Operations Cost Modeling - Nortel projects
    expenditures based on the company's specific architectures and
    processes.

    Nortel solutions help make telecommuting a seamless and affordable alternative for workers, helping to ease the world's dependence on oil. By 2020, the world's oil reserves are expected to be reduced by 50 percent. If just 175 cars are taken off the road each day, a company with 1,000 employees can save 44,000 gallons of gasoline annually and reduce greenhouse gas emissions by 420 metric tons per year.

    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; 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 controls over financial reporting; 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, 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; 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 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; 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 and CallPilot are trademarks of Nortel Networks. The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited.

    (a) Nortel's Magic Quadrant leadership is in the report, Magic Quadrant for Unified Communications, 2005, by Steve Blood, issued February, 14, 2005. The Magic Quadrant is copyrighted Feb. 14, 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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

--30--BD/da*

CONTACT: Nortel Pat Cooper, 425-450-7523 email: pat.cooper@nortel.com or Angelika Kempf, +44 1628 43 7340 email: angelika.kempf@nortel.com

KEYWORD: CALIFORNIA WISCONSIN TEXAS INTERNATIONAL EUROPE INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING HARDWARE SOFTWARE COMPUTERS/ELECTRONICS PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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