Microsoft And Nortel Make Unified Communications Available To Businesses Everywhere

Nortel Delivers First Integration With Microsoft Carrier-Hosted Hmc 4.5 Unified Communications Solution.
LAS VEGAS – June 2008 - Today at NXTcomm08, Microsoft Corp. and Nortel* [NYSE/TSX: NT] announced a fully hosted carrier solution that delivers a unified communications experience to small and midsize businesses (SMBs), extending benefits previously available only to large enterprises. The hosted solution is based on the Nortel Communications Server 2000 (CS 2000), an Internet Protocol multimedia softswitch, and the Microsoft Solution for Hosted Messaging and Collaboration Version 4.5 (HMC 4.5), which comprises hosted versions of Microsoft Office Communications Server 2007 and Microsoft Exchange Server 2007. Nortel is delivering the first integration with HMC 4.5 to help manage real-time communications and deliver a unified messaging experience. In addition, to help carriers simplify and accelerate deployment, Nortel’s Global Services portfolio provides a comprehensive suite of integration and end-user services to complete the end-to-end solution.

By combining the carrier-grade CS 2000 with HMC 4.5, service providers can offer SMBs new, powerful unified communications that combine real-time communications, such as voice, with Microsoft’s collaboration services, such as click-to-call, click-to-conference, missed call e-mail messages, mobility and telephony presence. These features all work seamlessly with the Microsoft Office portfolio and the Microsoft Office Communicator client to bring a unique experience to the end user. This new solution also allows SMBs to benefit from unified communications without having to purchase, install, manage and maintain additional network infrastructure and complex in-house systems, enabling them to save operational costs and increase productivity.

“Unified communications is a strategic purchase that, up until today, has been leveraged primarily by the large enterprise,” said Ruchi Prasad, vice president and general manager of the Innovative Communications Alliance at Nortel. “This enhanced joint Microsoft and Nortel solution makes unified communications accessible to businesses of all sizes. For service providers, this solution offers new revenue opportunities and the ability to expand their addressable market and deliver higher-value application and service bundles to their customers.”

“We are currently seeing strong interest in the hosted unified communications solution among our service provider customers,” said Steve Zimba, managing director, Global Telecom Business, Microsoft. “The fully hosted unified communications solution provides opportunities for increased revenue and helps service providers deliver the connected work style to SMBs, providing the ability to communicate virtually anytime, anywhere and on any device.”

At NXTcomm08, Microsoft and Nortel will showcase the hosted unified communications solution and demonstrate its value in enhancing business agility. NXTcomm08 attendees can obtain additional information by visiting the Microsoft booths SL5916 and SL5923 and the Nortel booth SL3516. Additional information can be found at http://www.microsoft.com/serviceproviders/nxtcomm08**.
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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