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BT and Nortel Sign New Four Year Global Trading Agreement


WEBWIRE

TORONTO - BT and Nortel* [TSX: NT, OTC: NRTLQ] today announced a new four-year global trading agreement for Nortel’s enterprise equipment and services including its convergence portfolio. This new trading agreement builds on the success of a 15-year relationship that has provided the UK market with leading voice applications.

Joel Hackney, president, Enterprise Business, Nortel, said: “Nortel and BT have always worked closely to provide the best solutions to our customers. This new agreement will not only strengthen our relationship, it also demonstrates the level of service we can offer. Together, Nortel and BT provide an attractive value proposition that comes from years of experience in all areas of the telecommunications industry. Not only do we understand the technology that businesses need to succeed, we also share a vision of delivering communications solutions that simplify and enhance the customer experience.”

Nortel and BT have a long history of delivering innovative, integrated solutions for enterprises. The agreement will provide customers with solutions that give them a competitive edge. With technology and skills derived from extensive carrier and enterprise solution portfolios, Nortel and BT can address customers’ needs whether it be voice, contact centres, routing, LANs or VPNs.

Lewis Lyell, managing director, convergence business sales, BT Global Services, said: “This new deal is very good news for our customers. It demonstrates our ability to deliver value to customers even in the toughest market conditions.”

About BT

BT is one of the world’s leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2009, BT Group’s revenue was £21,390 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York. For more information, visit http://www.btplc.com/ **

Enquiries about this news release should be made to the BT Group Newsroom on its 24-hour number: 020 7356 5369. From outside the UK dial + 44 20 7356 5369. All news releases can be accessed at our web site: http://www.btplc.com/News **

About Nortel (in Administration)

Nortel was placed into Administration on 14 January 2009 and it continues to trade on a business-as-usual basis while it reviews its options to recover or restructure. Nortel has announced it is confident that the products and services it supplies will continue to be supported without impacting customers for the foreseeable future. Ernst & Young are the joint administrators for 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 .

Additional information about Nortel

Market research firm Dell’Oro ranks Nortel as the worldwide leader in the enterprise voice market and worldwide PBX line shipments over the 12 months 3Q07-2Q08. Gartner positioned Nortel in the Leaders’ quadrant of the 2008 Magic Quadrant for Unified Communications, the 2008 Magic Quadrant for Corporate Telephony and the 2008 Magic Quadrant for Contact Center Infrastructure, Worldwide.

Nortel also recently launched the Business Communication Manager 450 (BCM450) to enable unified communications. In addition to receiving a ’five-out-of-five’ rating in Gartner’s Critical capabilities for Unified Communications report, the BCM 450 has become one of Nortel’s fastest selling products globally, with over one-thousand shipments made in the first three months.

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.

**This is a 3rd party link as described in our Web linking practices .

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



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