Nortel Government Solutions Teams With General Dynamics To Offer Latest In VOIP Secure Telephony

General Dynamics’ New Sectéra® vIPer™ Universal Secure Phone Enhances Migration To Secure VOIP, Enables NGS To Provide End-To-End Package

FAIRFAX, VA. - Nortel Government Solutions (NGS), a U.S. company wholly owned by Nortel* [OTC: NRTLQ, TSX: NT], has been designated by General Dynamics as an authorized reseller of the General Dynamics Sectéra® vIPer ™** Universal Secure Phone.

“This is an exceptionally beneficial relationship for federal customers,” said Chuck Saffell, CEO, Nortel Government Solutions. “As federal agencies and departments streamline inter-agency communication networks and enhance their unified communications capabilities by migrating to the use of VoIP, the combination of the Nortel Application Server 5300 with the General Dynamics Sectera vIPer Universal Secure Phone enables NGS to provide a secure, end to end VOIP solution for federal government customers with secure voice communications needs.”

The General Dynamics Sectéra vIPer Universal Secure Phone provides the latest upgraded algorithms and Secure Communications Interoperability Protocol (SCIP) technology. Using SCIP signaling and commercial open standards, the Sectéra vIPer phone enables secure communications over VoIP and PSTN networks. The vIPer is the only VOIP phone with integrated security certified to protect information classified Top Secret and below, including Sensitive But Unclassified (SBU) over commercial networks, and is available to support multiple key sets for U.S. government sponsored interoperability (e.g., NATO and coalition).

The combination of the Joint Interoperability Testing Command (JITC)-certified Nortel AS 5300 software solution and the General Dynamics vIPer phone enables NGS to provide a secure VOIP capability to federal government customers -- eliminating the need to use multiple desktop phones in order to accomplish secure and non-secure voice communications.

The AS 5300 is a Session Initiated Protocol (SIP)-based UC software solution that provides secure productivity, mobility, conferencing, messaging, personalization, video and collaborative applications. AS 5300 is currently the only product of its kind to be certified by the Department of Defense’s Joint Interoperability Testing Command. It provides for secure, standards based, multi-vendor interoperability in a VOIP environment. This interoperability is what enables the integration of the advanced, General Dynamics Sectéra vIPer Secure Phone into a complete solution for Federal Government customers.

About Nortel Government Solutions

Nortel Government Solutions is a network-centric integrator, providing the services expertise, mission-critical systems and secure communications that empower government to ensure the security, livelihood, and well being of its citizens. Headquartered in Fairfax, Va., Nortel Government Solutions offers a one-stop shop for solutions designed to improve workforce productivity, reduce operating costs, and streamline inter-agency communications. Please visit www.nortelgov.com for more information.

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. Nortel Government Solutions and the Nortel Government Solutions logo are trademarks of Nortel Government Solutions Incorporated. Sectera and vIPer are trademarks of General Dynamics.