Nortel Enables Advanced Communications for Smaller Companies, Branch O

    Business Editors/Technology Editors

    DALLAS--(BUSINESS WIRE)--May 12, 2005--Smaller companies and enterprises that rely on branch offices can benefit from a wide range of advanced communications services affordable only to larger businesses until now through a new enterprise solution from Nortel (NYSE:NT) (TSX:NT).
    Nortel's new Business Communications Manager (BCM) 50 is designed to give smaller businesses - with as few as three staff members - low cost, advanced communication services such as Internet telephony and online multimedia applications that allow employees to collaborate regardless of location.
    "BCM 50 joins Nortel's leading suite of solutions designed to specifically address the unique challenges of smaller enterprises, branch offices and franchises by providing them with the same advanced communication services as large corporations at a cost they can afford," said Malcolm Collins, president, Enterprise Networks, Nortel. "Nortel continues to work very closely with customers and channel partners to ensure our solutions for smaller businesses are as efficient and cost-effective as any in the industry."
    Nortel's BCM 50 uses Internet Protocol (IP) technology to substantially reduce communication costs by converging separate voice and data services onto one secure, reliable network providing anywhere anytime access. With IP-based communications, smaller businesses can further boost their bottom lines through faster, more efficient customer call center service and increased productivity for employees with online collaboration both in and outside the office.
    "With the addition of BCM 50 to our award-winning BCM portfolio, Nortel now offers the broadest range of IP telephony products in the market," Collins said. "Nortel is developing more innovative solutions like the BCM 50 to help the small business sector ignite global commerce and enhance the business experience through communications."
    Domino's Pizza has selected Nortel's BCM portfolio to allow its many pizza stores worldwide to communicate more effectively as part of the larger Domino's network. Individual stores can also use the new communication services to improve daily service to customers by providing the means for customized answering, call waiting and advanced call routing features, for example. Domino's Pizza has deployed BCM 400s and BCM 200s, as well as thousands of Norstar telephony systems. Domino's is currently evaluating Business Communications Manager 50 in beta trials.
    "We have hundreds of corporate stores that operate as their own small businesses but need to communicate as part of the larger organization," said Bill Kidder, director, Network Services, Domino's Pizza. "Using Nortel's Business Communications Manager-based solutions, our stores will be equipped with a fully-featured converged communications solution that is tailor-made for our business.
    "When we began assessing how new communication services could benefit our business, we didn't think it would be economically feasible to provide the wide range of features to our stores that we will now be able to implement thanks to Nortel. With the Nortel solution in place, we're able to offer advanced applications without being distracted from our main business focus of being the number one pizza delivery company in the world."
    In addition to Domino's Pizza, other customers evaluating the BCM 50 include Apex Rentals (Calgary), Metro Dodge Chrysler JEEP (Ottawa), and On Hold Marketing (Richmond, Va.).
    "The BCM 50 delivers a converged network that allows us to effectively manage not only our communications but our time," said Steve Read, president, Apex Rentals, a professional audio visual equipment company. "Unified messaging with one handy inbox for all types of communications allows our employees to prioritize voice messages and e-mail and respond to those that are most time-sensitive first."
    In addition, the BCM 50's capabilities are available for businesses that rely on employees that are mobile or home-based. The new Digital Mobility Solution, delivered with software code releases BCM 3.7 and Norstar 7.0(a), provides mobile access to time-saving and convenient features such as call forward, call transfer, conferencing, and voice mail from Nortel Mobility Handsets. The Digital Mobility Solution is a fully integrated application available on the Norstar and BCM platforms, providing coverage for up to 1.4 million square feet.
    "Our people are constantly on the move and need to be reached very quickly," said Jim Pears, Sr., president, Metro Dodge Chrysler JEEP. "Our various departments - New and Used Car and Truck departments, our Service Team, and Auto Parts as well as our Body Shop Managers - can now be reached both internally and externally by customers at all times. With Nortel's business communications mobility solution, our people can communicate on-the-move with the same level of reliability as office-based communications. This is great for efficiency and more importantly, great for customer service because it eliminates the frustration and loss of productivity when customers can't reach our employees quickly. It really is a wonderful system."
    Other customers trialing the Digital Mobility Solution include Canadian Tire (Toronto) and Von Ruden Manufacturing (Minnesota).
    As examples of Nortel's proven expertise in providing voice and networking solutions to enterprises and service providers worldwide, the BCM 50 and Digital Mobility Solutions incorporate the latest converged communications technology to deliver uncompromised reliability and performance. Nortel is the only company to have deployed more than 50 million enterprise telephony lines in addition to 50 million Ethernet ports. Nortel's IP multimedia solutions serve customers of all sizes in all industries.

    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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. 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 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 breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; 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; stock market volatility generally and as a result of acceleration of the settlement date or early settlement, which is currently not available, of Nortel's forward purchase contracts; 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; and the future success of Nortel's strategic alliances.
    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, the Globemark and Norstar are trademarks of Nortel Networks.

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

    (a) Not available in the U.K.

--30--AWG/na*

CONTACT: Nortel Jennifer McClain, 972-684-4844 email: jmcclain@nortel.com or Angelika Kempf, +44 1628 43 7340 email: angelika.kempf@nortel.com

KEYWORD: TEXAS INTERNATIONAL CANADA INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING HARDWARE SOFTWARE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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