Scarborough Building Society First EMEA Customer for New Nortel Contact Centre Solution

"As a financial services organization, we need to ensure arewarding customer experience by delivering the right services quicklyand efficiently," said Richard Giblin, project manager, ScarboroughBuilding Society. "The Nortel Contact Centre 6.0 is the right solutionfor evolving our contact centre infrastructure, with enhanced customersatisfaction being only a click away."

The Scarborough Building Society's contact centre is expected tobe easier to manage and less costly to implement while offering moreservices and revenue generating opportunities with newfunctionalities. Scarborough Building Society is planning to leveragethese new functionalities, especially the new Outbound CampaignManager, to fulfill its customer contact strategy and ultimatelyincrease market reach.

"The financial sector is one of Nortel's key verticals and as suchwe are very happy about Scarborough's decision to build on ContactCentre 6.0 for its infrastructure upgrade," said Andy Dennahy,director, multimedia solutions, EMEA, Nortel. "Jointly working withour channel partner BT, we were able to meet Scarborough'srequirements to focus on customer services and deliver comprehensivefunctionalities."

Nortel's Contact Centre 6.0 solution is a next generationSIP-based multimedia contact centre. It offers a single architecturethat enables managers to quickly adapt any contact centre to meetdiverse customer needs and accelerates customer resolution, often in asingle transaction.

About Scarborough Building Society

Scarborough Building Society was formed in May 1846 - making itthe oldest building society in Yorkshire and the second oldest in theUK. Whilst a great deal has changed in its long history, ScarboroughBuilding Society remains committed to mutuality and will continue toprovide the true value of a leading regional building society. Itsassets now exceed GBP1.6 billion, making it the 18th largest buildingsociety in the UK. For more information, visitwww.scarboroughbs.co.uk.

About Nortel

Nortel is a recognized leader in delivering communicationscapabilities that enhance the human experience, ignite and powerglobal commerce, and secure and protect the world's most criticalinformation. Serving both service provider and enterprise customers,Nortel delivers innovative technology solutions encompassingend-to-end broadband, Voice over IP, multimedia services andapplications, and wireless broadband designed to help people solve theworld's greatest challenges. Nortel does business in more than 150countries. For more information, visit Nortel on the Web atwww.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain information included in this press release isforward-looking and is subject to important risks and uncertainties.The results or events predicted in these statements may differmaterially from actual results or events.

Factors which could cause results or events to differ from currentexpectations include, among other things: the outcome of regulatoryand criminal investigations and civil litigation actions related toNortel's restatements and the impact any resulting legal judgments,settlements, penalties and expenses could have on Nortel's results ofoperations, financial condition and liquidity, and any relatedpotential dilution of Nortel's common shares; the findings of Nortel'sindependent review and implementation of recommended remedialmeasures; the outcome of the independent review with respect torevenues for specific identified transactions, which review will havea particular emphasis on the underlying conduct that led to theinitial recognition of these revenues; the restatement or revisions ofNortel's previously announced or filed financial results and resultingnegative publicity; the existence of material weaknesses in Nortel'sinternal control over financial reporting and the conclusion ofNortel's management and independent auditor that Nortel's internalcontrol over financial reporting is ineffective, which could continueto impact Nortel's ability to report its results of operations andfinancial condition accurately and in a timely manner; the impact ofNortel's and NNL's failure to timely file their financial statementsand related periodic reports, including Nortel's inability to accessits shelf registration statement filed with the United StatesSecurities and Exchange Commission (SEC); ongoing SEC reviews, whichmay result in changes to Nortel's and NNL's public filings; the impactof management changes, including the termination for cause of Nortel'sformer CEO, CFO and Controller in April 2004; the sufficiency ofNortel's restructuring activities, including the work plan announcedon August 19, 2004 as updated on September 30, 2004 and December 14,2004, including the potential for higher actual costs to be incurredin connection with restructuring actions compared to the estimatedcosts of such actions;

cautious or reduced spending by Nortel's customers; increasedconsolidation among Nortel's customers and the loss of customers incertain markets; fluctuations in Nortel's operating results andgeneral industry, economic and market conditions and growth rates;fluctuations in Nortel's cash flow, level of outstanding debt andcurrent debt ratings; Nortel's monitoring of the capital markets foropportunities to improve its capital structure and financialflexibility; Nortel's ability to recruit and retain qualifiedemployees; the use of cash collateral to support Nortel's normalcourse business activities; the dependence on Nortel's subsidiariesfor funding; the impact of Nortel's defined benefit plans and deferredtax assets on results of operations and Nortel's cash flow; theadverse resolution of class actions, litigation in the ordinary courseof business, intellectual property disputes and similar matters;Nortel's dependence on new product development and its ability topredict market demand for particular products; Nortel's ability tointegrate the operations and technologies of acquired businesses in aneffective manner; the impact of rapid technological and market change;the impact of price and product competition; barriers to internationalgrowth and global economic conditions, particularly in emergingmarkets and including interest rate and currency exchange ratefluctuations; the impact of rationalization and consolidation in thetelecommunications industry; changes in regulation of the Internet;the impact of the credit risks of Nortel's customers and the impact ofcustomer financing and commitments; stock market volatility generallyand as a result of acceleration of the settlement date of Nortel'sforward purchase contracts; negative developments associated withNortel's supply contracts and contract manufacturing agreements,including as a result of using a sole supplier for a key component ofcertain optical networks solutions; the impact of Nortel's supply andoutsourcing contracts that contain delivery and installationprovisions, which, if not met, could result in the payment ofsubstantial penalties or liquidated damages; any undetected productdefects, errors or failures; and the future success of Nortel'sstrategic alliances.

For additional information with respect to certain of these andother factors, see the most recent Annual Report on Form 10-K andQuarterly Report on Form 10-Q filed by Nortel with the SEC. Unlessotherwise required by applicable securities laws, Nortel disclaims anyintention or obligation to update or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise.

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