Nortel Embarks on Next Phase of Collaboration with IBM

Nortel Agile Communication Environment to Complement IBM SUT

OTTAWA - Nortel* [TSX: NT | OTC: NRTLQ] is teaming with IBM to integrate the Nortel Agile Communication Environment (ACE) with IBM Lotus Sametime Unified Telephony (SUT) to offer enterprise customers advanced communications-enabled business applications. The two companies have been collaborating on strategic initiatives such as unified communications (UC), carrier-hosted, and small-to-midsize business solutions since 2005 . This latest collaboration serves as a logical extension of those ongoing efforts.

Nortel ACE is expected to be validated as a complementary option for the telephony control component of a future release of SUT and will be delivered primarily by IBM Global Technology Services with support from Nortel. Customers will be able to communications-enable business processes via a robust set of defined and/or customized applications that drive greater accuracy, agility, and speed in day-to-day communications with employees, partners, and customers. Nortel and IBM also expect to align their integration efforts around a common Sametime user experience, providing end users the value of a consistent and familiar interface.

“In today’s environment enterprises are seeking new ways to use communication tools to automate, simplify and accelerate work-flow and business processes,” said Akiba Saeedi, director of unified communication and collaboration, IBM. “Nortel and IBM are continuing to work together using open standards and a SOA approach to deliver leading UC solutions for our joint customers.”

With increasing alignment around a common Sametime user experience, and in advance of the deeper integration with SUT, Nortel ACE and many of the associated business applications are available today as independent solutions. ACE leverages Service Oriented Architecture (SOA) and web service standards to openly, simply and rapidly communication-enable and optimize the day-to-day operations of any business. These applications can range from independent point solutions to full integration with contact center or self service (IVR) solutions that adapt to the customers choice in communications path and leverage existing infrastructure investments.

For example, Nortel ACE can integrate Global Positioning System (GPS) and WiFi-based location services with voice and instant messaging (IM) functionality to optimize the tracking and delivery of critical assets, such as expensive heart monitors in hospitals or delivery trucks in logistics companies. Deploying applications like Nortel’s GPS logistics and WiFi asset-tracking on ACE can help enterprises reduce operational expenses up to 10 percent.

Nortel ACE can also be used to integrate with healthcare portals and other clinical support applications in hospital environments to improve and advance the quality and safety of patient care. The result is intelligent, real-time communications that helps ensure that clinicians get the information they need, when they need it, sent to the appropriate devices of choice (mobile, PC, PDA).

Today, Nortel ACE offers customers the following:

* Seamless user experience across IP phones, soft clients, TDM phones and third-party and multi-vendor infrastructure and equipment including video;
* Presence aggregation (IM, telephony, video) within IBM Sametime via web service interfaces that provide access from any application, whether wired or wireless; and
* Personalization of the communications experience with whatever device a user chooses, according to individual preferences, for enhanced employee satisfaction and productivity.

“Nortel ACE offers a solid return on investment to businesses by helping them respond quickly to changes in their environment, lower costs, drive productivity and expand revenue opportunities,” said Lori McLean, general manager, Nortel-IBM Alliance. “A solution combining the strengths of Nortel ACE and SUT will amplify the value proposition to our joint customers and highlights the continued strength and vision of the Nortel-IBM Alliance.”

Sametime Unified Telephony is expected to be available from IBM in July 2009.

About Nortel

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 .

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.

IBM, Lotus, Sametime, and Sametime Unified Telephony are trademarks of International Business Machines Corporation in the United States, other countries or both.

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