Nortel Licenses Unreal Engine for web.alive

Engine Creates More Realistic, Interactive 3D Environment for Web 3.0 Collaboration, Training and Commerce.

OTTAWA – Nortel* [NYSE/TSX: NT ] announced it has licensed Epic Games’ Unreal Engine for Nortel’s new web.alive virtual world software application.

“The Unreal gaming engine provides an array of core technologies, content creation tools, and support infrastructure essential to Nortel’s web.alive application,” said Arn Hynman, web.alive chief architect. “By collaborating with Epic Games and licensing the Unreal Engine, we are enabling our customers to benefit from the same platform that powers industry-leading video games and complex 3D simulations.”

“The Unreal Engine enables companies to build dynamic, interactive virtual worlds for the next-gen workforce, and this licensing agreement signifies Nortel’s commitment to take its e-commerce and learning initiatives to the next level,” said Mark Rein, vice president of Epic Games. “Nortel’s web.alive application uniquely showcases how Epic’s engine technology can be leveraged to improve business collaboration.”

To learn more about the Nortel and Epic collaboration and to hear an interview with Arn Hyndman and Mark Rein, visit http://podcast.nortel.com/podcasts2/nortel_web_alive_7961.mp3 .

web.alive integrates spatial, high-definition audio and customized 3D spaces with conventional telephony, corporate systems and software to create a “real-life” experience in a virtual environment. Epic’s Unreal Engine 2.5 enables the display of stunning 3D environments and avatars with lifelike movements and interactivity. Nortel brings this impressive capability to your web browser as a thin client.

Nortel has also announced that Lenovo, one of the world’s largest manufacturers of personal computers, is using web.alive in a new online virtual store as a way to give consumers an exciting new avenue for e-commerce.

Nortel’s web.alive is a collaborative, browser-based virtual world application for enterprise use that provides an immersive, interactive and web integrated world with 3D voice and graphics. The application facilitates internal collaboration as well as customer interactions over the web and in real time. web.alive brings new dimensions to business collaboration, virtual training and ecommerce. For more information on web.alive, visit www.projectchainsaw.com or www.nortel.com/webalive .

Additional information on the Unreal Engine can be obtained through the Unreal Technology Web site at www.unrealtechnology.com .