Nortel to Integrate Communication Capabilities With IBM’s LotusLive

IBM and Nortel Collaborate to Add Voice Conferencing and Click-to-Call Capabilities to LotusLive with Nortel’s new Communication as a Service (CaaS) Solution

TORONTO -Nortel* [TSX: NT, OTC: NRTLQ] is collaborating with IBM to integrate its communication functions, initially voice and conferencing, with IBM’s LotusLive **. LotusLive is a new hosted social networking and collaboration service designed to help business customers maximize productivity with easy file sharing, e-mail, web conferencing and online events services over the Internet. To enable quick and easy voice communication in IBM’s LotusLive, Nortel has integrated click-to-call and click-to-conference capabilities via Nortel’s new Communications as a Service (CaaS) Transaction Broker application announced today at Mobile World Congress ** in Barcelona.

Today’s announcement expands on Nortel and IBM’s collaboration in the unified communications market. The communication services that integrate with LotusLive services will be hosted and offered by service providers and enabled by Nortel.

Nortel’s CaaS Transaction Broker allows communication services like conferencing, click-to-call, instant message (IM), video, and media services to be easily integrated into Software as a Service offerings, gaming environments, social networking sites, web mail, and wireless TV. The solution enables service providers and business customers to authorize as well as deliver, account and manage these communication services made through web service requests.

“Nortel single-click communications capabilities complement our LotusLive application. Nortel has strong expertise and experience in both Service Provider voice communications and network managed services,” said Sean Poulley, vice president, IBM Online Collaboration Services. “Combining Nortel’s capabilities with IBM’s LotusLive services gives service providers a Software as a Service (SaaS) business model and the ability to easily implement a revenue generating hosted communication solution.”

“Nortel’s CaaS Transaction Broker can be deployed quickly and easily in any network environment because it works across Nortel and non-Nortel network infrastructures,” said Samih Elhage, president, Carrier VoIP and Application Solutions, Nortel. “The business solution also easily scales to the service needs of any business or service provider’s customer base. Today, the communication business is no longer about selling a phone line to a home or business. It’s about being able to easily add communication services like conferencing, IM and video into any online network service like social networks and online gaming. The integration of Nortel’s CaaS with IBM’s LotusLive application is just one example of how this business solution can help carriers easily add these revenue generating communication services to their networks.”

Network service providers that want to use Nortel’s CaaS solution have a variety of deployment models to choose from. The CaaS Transaction Broker utilizes industry standard APIs, which allows for rapid deployment of multi-vendor solutions supporting all types of networks - wireline, wireless, cable and VoIP.

According to Dell’Oro Group **, Nortel is the worldwide leader in carrier VoIP and has maintained that position since 2002. Nortel has also shipped over 100 million carrier IP voice and multimedia ports to over 320 carriers globally.

Nortel’s CaaS Transaction Broker integrated with the IBM’s LotusLive carrier solution is being demonstrated at Mobile World Congress 2009 and is expected to be available to carriers from Nortel in Q3 2009.

Nortel will be demonstrating the click-to-call and voice conferencing capabilities in IBM’s LotusLive at Mobile World Congress in Barcelona at IBM’s booth in Hall 1-C31. Can’t make the show? Check out a demonstration ** of Nortel’s CaaS capabilities in IBM’s LotusLive on YouTube.

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel’s technologies are designed to help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com . For the latest Nortel news, visit www.nortel.com/news .

About IBM Corporation

For more information, please visit http://www.ibm.com **

See IBM at Mobile World Congress 2009 at Hall 1 Booth C31

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.

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