Nortel Puts Money to the Power of Three Towards Data Network Energy Bills

New ‘Nortel Powers Your Network Promotion’ Delivers Discounts Based on Estimated Energy Consumption Costs

LONDON - Nortel* [NYSE/TSX: NT ] announced the ’Nortel Powers Your Network Promotion’ that offers discounts based on three times the estimated annual energy consumption costs of a new Nortel data network solution to its customers in Europe, Africa and the Middle East (EMEA).

With the promotion, Nortel is complimenting the customer’s choice of selecting its specific energy efficient data network solutions by providing a price discount equivalent to three times the estimated current yearly power bill of the data network configuration purchased.

The discount value is calculated using the Nortel Energy Efficiency Calculator . The energy efficiency tool was created by Nortel to enable decision makers to measure their energy consumption costs and identify the cost-saving opportunities of working with a Nortel data centre solution. The Calculator enables customers to input various network deployment alternatives in network design and discover the potential energy cost savings of a Nortel solution, or even when a Nortel-for-Nortel upgrade will provide the return on investment.

Independent third-party tests conducted by the Tolly Group ** indicate that compared to similar offerings from a major competitor, Nortel data networks consume - on average - up to 40 percent less power.

“The discounts reflect the confidence we have that Nortel’s data networking solutions can reduce annual data centre power consumption bills by a significant amount,” said Barry Bonnett, president, Enterprise Solutions Nortel EMEA. “So Nortel is putting its money where its mouth is and offering to effectvely subsidise the costs of powering a new data network for the first three years of its life.”

The promotional offer is based on the purchase of selected Nortel Ethernet Routing Switch products to create a data network solution of Core and Access switches. The promotion includes the popular Nortel Ethernet Router Switch 8600 and 8300 core switches and the Nortel Ethernet Router Switch 5000 and 4500 access switches.

The ’Nortel Powers Your Network Promotion’ reflects the worldwide trend of customer concerns around saving energy and offsetting the rising cost of energy. “By taking part in this new Nortel EMEA promotion customers benefit immediately with an upfront discount attached to their new data centre purchase,” adds Bonnett. “They also benefit long term by knowing that they have chosen an energy-efficient solution that will help them to lower their operating costs.”

“We’re serious about making savings on the power bill of our technology infrastructure” says Dieter Wahner, responsible for the LAN infrastructure at Verlag M.DuMont Schauberg, Cologne/Germany. “By selecting Nortel data networking solutions we will achieve an estimated cost saving of up to 280.000€ in five years, which includes savings related to the network equipment itself and the reduced cooling requirements. And not forgetting that we can openly demonstrate our commitment and contribution to reducing our carbon footprint.”

Energy costs in most European countries have increased significantly in this year alone, soaring by 13.6 per cent in the UK, 9.5 per cent in Germany and 12 per cent in France, according to recent figures from the Organisation for Economic Co-operation and Development. Even in countries like Russia, where the costs of energy is not such a obvious expense, there is a move towards improving energy efficiency to avoid service interruptions.

The ’Nortel Powers Your Network Promotion’ runs until December 31, 2008 and is available via Nortel’s EMEA channel of accredited resellers. Please visit the Nortel website for more program details and contact your Nortel Accredited Reseller.

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 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.
**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. “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.