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Nortel Joins Trusted Computing Group, Will Participate in Trusted Network Connect Work Group


Industry Initiative Accelerates Open Standards for Network Access Security and Integrity

FEBRUARY 14, 2006, SAN JOSE - Nortel* [NYSE/TSX: NT] announced that it has joined the Trusted Computing Group (TCG) and will participate in its Trusted Network Connect (TNC) work group. Members of the non-profit group develop open industry specifications that ensure secure interoperability across multi-vendor network security solutions.

Nortel is integrating TNC specifications into its Secure Network Access Solution, including the Nortel Secure Network Access Switch that was unveiled today as the new cornerstone of the Companyís enterprise-wide endpoint security and policy compliance solution.

ďNortel customers, both enterprise and carrier, have been asking for an industry-wide approach to securing their networks and data,Ē said Steve Slattery, president, Packet and Enterprise Networks, Nortel. ďBy joining forces with other leading proponents of an industry-standard approach, we can help create momentum for interoperability in delivering secure network access throughout the industry. Nortel expects to aggressively support the rapid development of relevant security standards supporting converged communications.Ē

ďWe are delighted Nortel will bring its networking expertise to TNC and plans to support the open specification in its products,Ē said Brian Berger, chair, TCG marketing work group. ďNortel joining the efforts of TNC helps to further accelerate the adoption of the open security specification in the industry and benefits customers by providing interoperable products across multiple product lines.Ē

Initial TNC specifications were first introduced by TCG in May 2005 and several TCG members now support these specifications in their products. Over 60 industry vendors have joined the work group to support and implement the TNC architecture and ensure interoperability in access security across multi-vendor networks.

ďAs a cofounder and an active participant in the TNC, we are pleased that Nortel has joined the TNC and we look forward to working with them to help enable interoperability in access security and integrity across multi-vendor networks,Ē said Enrique Salem, senior vice president of Security Products and Solutions, Symantec Corporation.

Reliable security standards developed through industry groups like TNC can drive innovation, reduce cost of implementation, and enhance security. Enterprise interest in security standards is growing rapidly as more and more users, companies, governments, and developers seek to practice, and profit from it.

ďCompanies still need to deploy network access control technologies - which Forrester calls network quarantine - to ensure network safety,Ē said Rob Whiteley, Forrester Research, Inc. ďThe last key element of network quarantine - and one critical to making it a true network-wide solution - is standardization. Users need standards to tie together endpoints, network elements, and backend policy servers from different vendors.Ē

About the Trusted Computing Group

The Trusted Computing Group (TCG) is a not-for-profit organization formed to develop, define, and promote open standards for hardware-enabled trusted computing and security technologies, including hardware building blocks and software interfaces, across multiple platforms, peripherals, and devices. TCG specifications will enable more secure computing environments without compromising functional integrity, privacy, or individual rights. The primary goal is to help users protect their information assets (data, passwords, keys, etc.) from compromise due to external software attack and physical theft. More information and the organizationís specifications are available at the Trusted Computing Groupís website,**

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 worldís 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 todayís 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 For the latest Nortel news, visit

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortelís restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortelís results of operations, financial condition and liquidity, and any related potential dilution of Nortelís common shares; the findings of Nortelís independent review and implementation of recommended remedial measures; the outcome of the ongoing independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortelís previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortelís internal control over financial reporting and the conclusion of Nortelís management and independent auditor that Nortelís internal control over financial reporting is ineffective, which could continue to impact Nortelís ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortelís and NNLís failure to timely file their financial statements and related periodic reports, including Nortelís inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); the impact of management changes, including the termination for cause of Nortelís former CEO, CFO and Controller in April 2004; the sufficiency of Nortelís restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortelís customers; increased consolidation among Nortelís customers and the loss of customers in certain markets; fluctuations in Nortelís operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortelís cash flow, level of outstanding debt and current debt ratings; Nortelís monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortelís ability to recruit and retain qualified employees; the use of cash collateral to support Nortelís normal course business activities; the dependence on Nortelís subsidiaries for funding; the impact of Nortelís defined benefit plans and deferred tax assets on results of operations and Nortelís cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortelís dependence on new product development and its ability to predict market demand for particular products; Nortelís ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortelís customers and the impact of customer financing and commitments; general stock market volatility; negative developments associated with Nortelís supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortelís supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; any undetected product defects, errors or failures; the future success of Nortelís strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business. For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel 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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