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Red Rock Casino, Resort and Spa Guests Win Big with Nortel Convergence Solutions and Sprint’s New Local Company


WEBWIRE

Indulges guests with premium, on-demand fine dining, gaming and entertainment services

MAY 02, 2006, LAS VEGAS - Station Casinos, Inc., one of the leading gaming corporations in the U.S., is delivering the ultimate in-room communications experience for guests at its new Red Rock Casino, Resort and Spa through converged IP solutions from Nortel and its channel partner Sprint.

Guests of the newly opened, billion dollar resort in Las Vegas have access to personalized, on-demand services using color touch screens of Nortel IP phones located in each room. Nortel converged communications solutions deliver advanced IP telephony and multimedia applications to in-room Nortel touch screen phones to let Red Rock guests take full advantage of the resort’s fine dining, gaming and entertainment services.

Guests can easily make dinner reservations at many of the resort’s nine restaurants, schedule a massage at the 25,000 square-feet Spa at Red Rock or connect with the hotel’s concierge to plan adventure activities such as rock climbing or white water rafting-all through interactive in-room communications using Nortel IP phones.

“We created an IP network for Red Rock that delivers premium personalized communication services and allows the resort to expand its service offerings, improve guest loyalty and ultimately bolster profitability,” said Alex Pierson, general manager, Enterprise and Small-Medium Business Communication Systems, Nortel.

“Sprint’s new local company is very excited to power Red Rock Station with Nortel equipment,” said Sprint’s vice president of Business Sales, Richard Twilley. “With the latest content, interactive features and programming, guests will be able to experience communications in an entirely new way.”

The IP network from Nortel also allows Red Rock to streamline administrative functions to heighten staff productivity and deliver the highest levels of guest experience from check-in through check-out. For example, quick access to room status information is critical in reducing waiting times for guests on checking in or for determining whether a room can be sold, if it needs maintenance or additional cleaning. These efficiencies allow Red Rock management to allocate staff resources quickly to where they are needed most.

The new Nortel network also reduces staff operator time by automating such guest services as wake-up calls or answering routine questions regarding area attractions, hotel events or airport shuttles. In addition, the system will provide 18 language options to accommodate guests from around the world.

Station Casinos is also using Nortel IP solutions in the new 94,000 square-feet of meeting and convention space located on the Red Rock property and also plans to use Nortel IP solutions to converge voice and data networks at its new corporate headquarters. Nortel’s voice solutions are currently being used at 6 Station Casino properties across the United States, with Red Rock being the first location to deploy advanced featured IP devices in the room to enhance the guest experience.

This deployment is based on Nortel’s highly reliable data networking technology that provides guests with a superior quality of experience for voice and multimedia services. The Red Rock deployment includes Nortel’s IP telephony flagship Communication Server 1000 in conjunction with Nortel’s CallPilot for unified messaging and the color touch screen Nortel IP Phone 2007. The core data network consists of Nortel’s Ethernet Routing Switch 8600 and Nortel Ethernet Routing Switch 5520, which deliver Power over Ethernet to the edge. The whole package delivers advanced telephony and messaging services directly to the guests’ rooms.

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”, “plans”, “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. Although Nortel believes expectations reflected in such forward-looking statements are reasonable based upon certain assumptions, they may prove to be inaccurate and consequently Nortel’s actual results could differ materially from its expectations set out in this press release. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s restatements and related matters including: Nortel’s most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports (including the anticipated delay in filing the Quarterly Reports on Form 10-Q for the first quarter of 2006) causing them to breach their public debt indentures and obligations under their credit facilities with the possibility that the holders of their public debt or NNL’s lenders would seek to accelerate the maturity of that debt, and causing a breach of NNL’s support facility with EDC with the possibility that EDC would refuse to issue additional support under the facility, terminate its commitments under the facility or require NNL to cash collateralize all existing support; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel’s proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel’s existing equity positions resulting from the finalization and approval of its proposed class action settlement, or if such proposed class action settlement is not finalized, any larger settlements or awards of damages in respect of such class actions; any unsuccessful remediation of Nortel’s material weaknesses in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel’s remedial measures; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel’s below investment grade credit rating and any further adverse effect on its credit rating due to Nortel’s restatement of its financial statements; 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any material and adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel’s operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel’s supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel’s current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; additional valuation allowances for all or a portion of its deferred tax assets; Nortel’s failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel’s failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel’s failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: the impact of Nortel’s most recent restatement and two previous restatements of its financial statements; any acceleration under their public debt indentures and credit facilities, which may result in Nortel and NNL being unable to meet their respective payment obligations; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of credit facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel’s public debt issues and the provisions of its credit facilities; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel’s publicly traded securities, or any future share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel’s common shares. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form 10-K/A 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.

Sprint “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
The matters discussed in this press release that are not historical or current facts deal with potential future circumstances and developments, in particular relating to completion of the separation. This discussion is qualified by the inherent risks and uncertainties surrounding future events generally and also may differ materially from actual future experience involving any one or more of such matters. Such risks and uncertainties include: the result of the review of the proposed separation by various regulatory agencies and any conditions imposed on Embarq Corporation or Sprint Nextel in connection with consummation of the separation, the approval of the separation by the Sprint Nextel board of directors, the receipt of satisfactory tax opinions and the risks that are described in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” contained in the Form 10 Registration Statement of Embarq Corporation, as filed with the Securities and Exchange Commission on January 23, 2006, as amended March 14, 2006, and April 10, 2006 and in Sprint Nextel’s filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2005. In addition to the factors mentioned above and within the Form 10 Registration Statement and in Sprint Nextel’s filings with the Securities and Exchange Commission, economic, governmental, technological, capital market and other factors could affect the forward-looking statements in this press release. Forward-looking statements speak only as of the date they were made, and neither Sprint Nextel nor Embarq Corporation undertakes an obligation to update or revise any forward-looking statements in light of new information or future events.

*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. Use of the terms “partner” and “partnership” does not imply a legal partnership between Nortel and any other party.



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