Nortel Teams Up with Virtual Heroes to Deliver 3D Virtual Training Application

Collaboration Brings More Interactive Learning and Collaboration Tools for Business

OTTAWA - Nortel* [TSX: NT, OTC: NRTLQ] today announced that it is working with Virtual Heroes Inc. **, a leader in simulations for learning, serious games and virtual worlds, to further enhance the simulation and training functionality of its web.alive communications application.

Virtual Heroes Inc. (VHI), the “Advanced Learning Technology Company”, creates collaborative interactive learning solutions for the healthcare, federal systems and corporate training markets. The company is best known for its work with the America’s Army Game training platform architecture, and HumanSim ™** for medical training and education.

“As the newest member to our growing web.alive partner community, Virtual Heroes brings its virtual simulation and learning expertise to the real-time immersive world of web.alive,” said Nicholas Sauriol, web.alive Venture Leader, Nortel. “Virtual Heroes’ training simulations combined with Nortel’s web.alive collaboration application will allow people to learn and collaborate in an enjoyable and effective manner without the added costs of making travel arrangements.”

In 2008, the Entertainment Software Association released a study that found that 70 percent of major employers utilize interactive software and games to train employees.

“With its web.alive solution, Nortel is pushing the envelope and creating a truly next-generation immersive application that lets enterprises meet, conduct business and train employees in a more interactive, fun and engaging way,” said Jerry Heneghan, CEO, Virtual Heroes. “Nortel’s approach facilitates highly interactive 3D collaboration, integrated communications, security and spatial audio through the web via a thin client. Nortel and Virtual Heroes are teaming to provide a richer experience with advanced simulation technologies created specifically with education and training in mind.”

Earlier this year, Nortel announced that Lenovo, one of the world’s largest manufacturers of personal computers, is using web.alive in a new online virtual store as a way to give consumers an exciting new avenue for e-commerce. Nortel also announced it has licensed Epic Games’ Unreal Engine for its web.alive application, the same engine Virtual Heroes uses for its simulation-driven training solutions.

Virtual Heroes’ expertise in building solutions with this technology platform will further benefit the advanced learning solutions driven by Nortel’s web.alive application.

Nortel’s web.alive is a collaborative, browser-based virtual world application for enterprise use that provides an immersive, interactive and web integrated world with 3D voice and graphics. It facilitates internal collaboration as well as customer interactions over the web and in real time. web.alive brings new dimensions to business collaboration, virtual training and ecommerce. For more information on web.alive, visit www.projectchainsaw.com or www.nortel.com/webalive .

About Virtual Heroes Inc.

Founded in January 2004, and located in Research Triangle Park, NC, Virtual Heroes Inc. (VHI), the “Advanced Learning Technology Company,” creates collaborative interactive learning solutions for the Healthcare, Federal systems and commercial markets. Advanced Learning Technologies leverage simulation learning, serious games and virtual worlds to accelerate learning, increase proficiency and reduce training costs for next generation workforce development. As a global market leader in this field, VHI applications facilitate highly interactive, self-paced learning and instructor-led, distributed team training on the Virtual Heroes Advanced Learning Technology (A.L.T.) platform using the Unreal® Engine 3 by Epic Games.
For more information about Virtual Heroes, its products and services, please visit www.virtualheroes.com .**

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 .

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