Healthcare Customers Deploy Nortel Mobility Solutions to Improve Patient Care and Staff Productivity

Clinical Grade Solutions Enable Anytime, Anywhere Healthcare Information Access

FEBRUARY 13, 2006, SAN DIEGO, CA. - Nortel* [NYSE/TSX: NT] announced new customer deployments that demonstrate the Company’s strength in helping healthcare institutions treat patients as quickly and efficiently as possible through anywhere, anytime communications for doctors and nurses. Nortel’s healthcare solutions are also designed to provide lower operational costs and enhanced reliability. The announcement was made at the Healthcare Information and Management Systems Society’s (HIMSS) 2006 conference.

New North American customers benefiting from the enhanced reliability and mobility features of Nortel’s healthcare solutions include: Continuum Health Partners (NY), Interior Health Company (Canada), Geisinger Health System (PA), Sparrow Hospital (MI) and Bassett Healthcare (NY).

“Nortel’s technology is helping making it possible for healthcare providers to have seamless access to high-bandwidth applications like medical images from PACS (Picture Archive and Communication System) that are critical to delivering improved patient care today,” said Alex Pierson, general manager, Enterprise and SMB Communication Systems, Nortel. “Our secure mobility solutions are also designed to assist doctors, nurses, and staff to access more securely confidential patient information in real time, on any device - PDA, laptop, and WLAN phone - helping ensure that decisions about care are made more quickly and efficiently.”

Continuum Health Partners has deployed Nortel’s mobility solutions across its network of hospitals in New York City which includes over 3,100 beds and 16,000 employees. Nortel’s WLAN 2300 and Ethernet Routing Switch solutions enable Continuum to help improve patient care by providing doctors and nurses with real-time access to patient information anywhere, anytime. In addition, the Optical Metro 5200 DWDM platform enables high-speed data services through a highly-resilient converged network, allowing the centralization of their services to reduce administrative and real estate costs while improving the efficiency of delivering medical services. IT staffing responsibilities have also been outsourced to Nortel, including network engineering and day-to-day operations of the network infrastructure.

“The Nortel solution is the foundation for our healthcare communications systems, allowing doctors and nurses to update patient information immediately, regardless of location. In the healthcare environment, that means saving lives,” said Marc Milstein, corporate vice president and chief information officer, Continuum. “One exciting application we’ve been able to implement with the Nortel solution is our Computers on Wheels initiative. The program brings mobility to our clinical information systems, allowing care providers to access information and systems, including radiology, PACS or patient files, where they need it most - at the point of care. Previously this information was only accessible at static stations throughout the hospitals.”

Nortel is showcasing its innovative clinical grade healthcare solutions at HIMSS booth # 901. Nortel will demonstrate mobility with location-awareness, remote diagnosis over broadband wireless and solutions for doctors’ offices and other smaller clinical settings.

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 world’s most critical information. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

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 Nortel’s restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel’s results of operations, financial condition and liquidity, and any related potential dilution of Nortel’s common shares; the findings of Nortel’s 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 Nortel’s previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel’s internal control over financial reporting and the conclusion of Nortel’s management and independent auditor that Nortel’s internal control over financial reporting is ineffective, which could continue to impact Nortel’s ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel’s and NNL’s failure to timely file their financial statements and related periodic reports, including Nortel’s 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 Nortel’s former CEO, CFO and Controller in April 2004; the sufficiency of Nortel’s 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 Nortel’s customers; increased consolidation among Nortel’s customers and the loss of customers in certain markets; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; Nortel’s monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel’s ability to recruit and retain qualified employees; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s 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 Nortel’s customers and the impact of customer financing and commitments; general stock market volatility; negative developments associated with Nortel’s 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 Nortel’s 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 Nortel’s 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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Pat Cooper

Nortel

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