LG-Nortel Introduces a New Complete Line of Desktop IP Phones Responding to Big and Small Business Communications Challenges

The LG-Nortel IP8800 series Phones Ease Deployment, Boost Employee Productivity for Businesses of All Sizes

SEOUL - Businesses of all sizes can empower their employees to work smarter and more effectively by utilizing high-quality audio and communications features provided by the IP Phone 8800 series by LG-Nortel*, a joint venture of LG Electronics and Nortel* [TSX: NT | OTC: NRTLQ].

Supporting a range of features at a cost-effective price, the standards-compliant LG-Nortel IP Phone 8800 series delivers IP telephony functionality for enterprises, small and medium sized business (SMBs), and carrier-hosted VoIP services. Incorporation of a wide-band codec enables the LG-Nortel IP Phone 8800 series to deliver the best voice quality at all times.

The combination of extensive functionality and enterprise value-add features has led to the selection of the LG-Nortel IP Phone 8800 series by Cypress Communications®, a leading provider of managed telephony and hosted unified communications solutions. Models in the LG-Nortel IP Phone 8800 series extend from entry-level units designed for ease of use by employees, to feature-packed models that put sophisticated communications features - such as multi-line support, a phone directory screen, Bluetooth wireless headset support, and more - into the hands of executives and knowledge workers.

The LG-Nortel IP Phone 8800 series follows LG-Nortel’s trend of supporting a range of industry standards to ensure easy installation and management of market-leading VoIP technology. Support for common protocols including Session Initiation Protocol (SIP) and Media Gateway Control Protocol (MGCP) ensures compatibility with a broad range of VoIP call servers including Nortel Communication Server (CS) 2000 and Adaptive Application Engine platform, speeding deployment across an enterprise even if multiple call servers are installed. The LG-Nortel IP Phone 8800 series is an integral part of Nortel’s IP Powered Business solution, which is structured to make it easy for service providers around the world to sell and host pre-tested VoIP services to SMB.

“As a leading provider of hosted unified communications, Cypress continues to expand its product offerings by developing and deploying new solutions utilizing best-of-breed equipment - from the network to the phone on each desk,” said Randy Young, vice president of Engineering, Cypress Communications. “For a solution that we’ll be introducing soon, we needed SIP-supported handsets that could integrate with our advanced network architecture while offering the right mix of cost-effectiveness and functionality. The LG-Nortel phones met these criteria and more - and passed our stringent testing and certification process. We expect the phones to be a valuable addition to our new solution and a productivity-enhancing tool for our customers.”

“In an era where businesses are looking for the most cost-effective telephony solutions possible, VoIP has become the option of choice for businesses of all sizes,” said JD An, vice president, Enterprise Solutions, LG-Nortel. “Estimates predict a near doubling of IP phone penetration in businesses this year, and LG-Nortel has worked diligently to meet this demand with the industry’s most feature-packed, cost-effective IP phones. The standards compliance LG-Nortel IP Phone 8800 series makes it easy to install and manage, while providing employees with the right mix of features to help them work more efficiently and become more productive than ever.”

For more information about the LG-Nortel IP8800 series and the country availability list visit www.LG-NORTEL.com

About LG-Nortel
LG-Nortel is a joint venture of LG Electronics and Nortel. Established in 2005, LG-Nortel provides leading edge telecommunications equipment and network solutions, spanning wired and wireless technologies, to service provider and enterprise customers in Korea and around the world. LG-Nortel is also actively developing next generation solutions for global markets, with over 1,000 skilled R&D engineers currently focused on wireless broadband technology evolution and the development of powerful new product lines. For more information on LG-Nortel, visit www.lg-nortel.com

About Nortel
Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. 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. LG-Nortel and the LG-Nortel logo are trademarks of LG-Nortel. Cypress Communications is a registered service mark of Cypress Communications.