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Nortel Offers Energy Savings Credit to Combat the “Cisco Energy Tax”**


Unique Program for New Data Customers in North America Reduces Network Operating Costs

TORONTO – To help North American enterprise data managers combat the “Cisco Energy Tax”** and reduce operating costs, Nortel* [NYSE/TSX: NT] is offering an energy savings credit program for new customers of its data networking solutions.

Nortel is providing new customers purchasing its data solutions for the first time with a credit approximately equal to their first-year’s energy savings as calculated by the Nortel Energy Efficiency Calculator (NEEC). The calculator analyzes deployment scenarios based on different configurations, equipment, cooling costs, regional power costs and other energy factors specific to the customer’s network over one full year. The approximate energy savings is then discounted by Nortel from the cost of a new data network.

“Customers participating in this promotion may double the energy saving benefits of Nortel data solutions - first in the upfront credit, then through reduced energy consumption throughout the first year,” said Net Payne, vice president, North America Marketing, Nortel. “We are confident that once data managers see firsthand the savings available to them by integrating Nortel data equipment into their existing networks, they will want to expand their use of our products.”

Independent third-party tests by the Tolly Group*** indicate that compared to Cisco, Nortel data networks** consume up to 40 percent less power. Tolly Group’s latest test shows that operating a Cisco core switch can cost up to 64 percent more in energy costs during a five year period than a comparable Nortel solution.

Qualifying for the Energy Savings Credit program is simple. Any qualifying company that is new to Nortel data solutions, with a minimum of 1,000 employees and network sites in North America is eligible. This includes companies with competitor’s equipment and existing Nortel voice customers. Nortel data customers who have made no Nortel data purchases from January of 2005 until December of 2007 are also eligible for the promotion.

The Energy Savings Credit campaign runs through December 12, 2008 and is available via Nortel direct sales or its channel sales teams. Please visit the Nortel Website for more program details. Certain restrictions apply.

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 For the latest Nortel news, visit

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.

**The Tolly Group Report Number 208298, July 2008, reported the results of a power consumption evaluation of six Nortel converged data network products consisting of large and medium core and wiring closet Ethernet Routing Switches (ERS), enterprise branch office routers, and IP phones compared to similar Cisco products on the basis of power consumption and heat dissipation, and five-year operational cost. See also the Tolly Group Report Number 208275, January 2008, and Info-Tech Research Group Report (January 30, 2008). “Cisco Energy Tax” refers to up to 40 percent energy consumption savings when using these Nortel products instead of comparable Cisco products. Cisco is a registered trademark of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other countries.

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