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Verizon Tests Nortel IMS Solution


DECEMBER 14, 2005, TORONTO - Verizon is testing an IMS solution from Nortel* [NYSE/TSX: NT], as part of Verizonís ongoing plans to evaluate IMS technologies.

The lab evaluation is being conducted in Verizonís Laboratories in Waltham, Massachusetts, where Verizon engineers have spent more than a decade researching and testing packet switching. This testing will allow Nortelís IMS solution to demonstrate full interoperability in a multi-vendor environment and full support for voice services over fiber to the premise (FTTP).

Nortel is Verizonís largest softswitch vendor, with multiple solutions deployed across the country. Nortelís Communication Server (CS) 2000 is part of the backbone of Verizonís nationwide packet network. These softswitches control more than 3.8 million packet trunk and line ports, with the capacity to deliver several million more. VoIP is being introduced into the local service network as well, potentially allowing Verizon to provide customers with network-based services that dramatically increase functionality, mobility and productivity.

ďVerizon, which has been using Nortelís softswitch since 2001, is now beginning its evaluation of IMS compliant solutions in order to converge voice, video and multimedia services using globally standardized protocols and architecture. We are looking for open, standards-based solutions that will support rapid development of new innovative services to increase customer retention and attract new subscribers,Ē said Mark Wegleitner, senior vice president and chief technology officer, Verizon.

IMS is a standards-based architecture designed to allow service providers and operators to provide a broad range of SIP-based services across packet or switched networks to any customers, fixed or wireless. Nortelís IMS solution utilizes a new Call Session Controller and Home Subscriber Server (HSS) while leveraging the installed softswitch base for gateway control and voice applications. This gives service providers and operators a secure migration path to a cost-effective, all-IP network to develop, integrate and roll out new, enriched personalized services.

ďNortel has always focused on protecting customersí investment, and our path to IMS is no different. We know precisely what this emerging market needs. Our IMS solution leverages more than five years of internal R&D investment in SIP, and the significant experience we have gained through deploying our SIP-based Multimedia Communications Server (MCS) 5200 in more than 40 service provider networks,Ē said Alan Stoddard, general manager, Carrier Multimedia Networks, Nortel. ďWe have designed our VoIP systems to easily transition to IMS, and all of our call servers provide IP Multimedia and SIP Call Session Control.Ē

Nortel ranked number one in the global markets for service provider softswitches and gateways for the first half of 2005 and the entire year of 2004, according to Synergy Research Group. Nortelís open, standards-based IMS solution is being trialed globally by operators across wireless and wireline markets to enable rapid development and delivery of differentiated IMS SIP-enabled services. Nortel is a leader in delivering SIP applications and is working with its IMS ecosystem partners to deliver one of the industryís most advanced and flexible IMS solutions.

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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the worldís greatest challenges. 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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