Nortel Solution Unifies Campus for Hulunbeier New Gold Chemical Company

Unified Communications Boosts Productivity, Cuts Energy Consumption, Costs

BEIJING - The staff of Hulunbeier New Gold Chemical Company (HNGCC) will benefit from improved productivity and environmental savings through deployment of a unified communications solution from Nortel* [NYSE/TSX: NT ] across its entire campus. HNGCC is a joint venture of Yuntianhua Group and Hongkong New Gold Group.

In building its new factory in Hulunbeier, located in the Inner Mongolia Autonomous Region, HNGCC needed a high-performance, highly reliable and cost-effective infrastructure that could manage a wide range of operational information. The Nortel solution enables HNGCC to combine campus communications such as entrance guard security information and video surveillance, with unified communications functions like one-click access to VoIP, multimedia conferencing, email, instant messaging and presence-based applications. Nortel’s proven energy-efficient solutions will position Hulunbeier to deliver these capabilities while cutting energy consumption by up to 40 percent over competing solutions.

“Nortel’s unified communications solution will facilitate factory monitoring and unfettered communications among employees whereever they are across the campus,” said Jerry Huang, general manager, Enterprise Networks, Greater China, Nortel. “Even better, with Nortel solutions proven to offer up to 20 times the performance and seven times the resiliency at half the cost of competing solutions , Hulunbeier can enjoy its improved collaboration at lower cost and with lower environmental impact.”**

Hulunbeier’s new environment leverages Nortel’s flagship Communication Server (CS) 1000 , Multimedia Communication Server (MCS) 5100 and Ethernet Routing Switch (ERS) 8600 . The MCS 5100, a network-based SIP application-delivery solution, offers powerful real-time collaboration capabilities to enhance teamwork during virtual meetings. It seamlessly integrates IP telephony, multimedia conferencing, instant messaging, presence, and other collaboration tools to employees anytime, anywhere.

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. 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.

Use of the terms “partner” and “partnership” does not imply a legal partnership between Nortel and any other party.