Postal Service Extends IT Services Contract with Nortel Government Solutions

US$6 Million Award Covers Continued Software Support for PostalOne! System

WASHINGTON – Neither snow, nor rain, nor heat, nor gloom of night stop the U.S. Postal Service* (USPS*). To help keep it that way, the agency has awarded a one-year, estimated US$6 million IT services contract extension to Nortel Government Solutions.

This extension for services to support the PostalOne!* automated mail handling system follows a one-year, US$9.6 million extension in 2006. Nortel Government Solutions is a U.S. company wholly owned by Nortel* [NYSE/TSX: NT].

The PostalOne!** system helps integrate and optimize business mail handling, which is a nearly US$40 billion annual business for USPS. It also provides financial management data, as well as online access to tracking and status information for both USPS and its business customers.

“We’re continuing to work with the Postal Service not only to keep PostalOne! running efficiently, but also to provide new applications and enhancements designed to help raise the level of customer service,” said Chuck Saffell, chief executive officer, Nortel Government Solutions.

Nortel Government Solutions provides software design, secure data management and integration of the PostalOne! system with legacy USPS systems and third-party applications. This includes development and enhancement of mail processing support applications to handle an estimated two million new addresses each year.

Nortel Government Solutions has provided systems and application development, engineering and network administration services for USPS since 1993.