Nortel Networks

Nortel Introduces Affordable, Sophisticated Communications Solutions for Small and Medium Businesses

    Toronto, Canada (ots/PRNewswire) -

    - New Portfolio Designed to Simplify Operations While Delivering Increased Productivity, Collaboration

TORONTO, Canada, June 12 /PRNewswire/ --

    Nortel(x) (NYSE:NT; TSX: NT) today announced a new portfolio of voice, data and wireless products designed to help small and medium businesses (SMB)  boost employee productivity and satisfaction, streamline business  operations and costs, and deliver superior customer service.

    For nearly 20 years, Nortel has provided voice communication solutions  to more than 15 million small and medium business employees in more than 80  countries, and its award-winning Business Communication Manager (BCM) 50  sold more than 22,000 units globally during its first year of availability.  Nortel is replicating that success with the expansion of its SMB portfolio  and is increasing focus on programs, training and tools to support channel  partners and to ultimately drive revenue in this critical, growing market segment.

    Nortel's expanded SMB portfolio brings the power of wireless LAN, Ethernet switching, security and converged voice and data to the SMB market . The portfolio will be available in August 2006 and consists of four new  products that address unique requirements, challenges and budgets of  smaller businesses. The new SMB portfolio also includes enhancements to  Nortel's BCM.

    "We began to realize the power of communications technology last year  when we installed Nortel's BCM. It delivers big-system features and  capabilities at affordable, small business owner pricing - giving us both  big- company technology and small-company personal touch," said Jim Pears,  president, Metro Dodge Chrysler Jeep. "We are now using a complete SMB  system from Nortel to deliver a superior service experience for our  customers. We're able to provide customers with IP phones and a wireless  hotspot in the service waiting area and our service manager is never out of  reach with his PDA and soft phone."

    "Nortel is delivering solutions that make new technologies relevant and  beneficial to small and medium businesses," said Alex Pierson, general  manager, Enterprise and Small-Medium Business Communication Systems, Nortel . "The right business communications system can completely change the  playing field for a smaller company, but solutions must be tailored for  smaller businesses, affordable and easy to implement and use. With our new  portfolio, small and medium businesses can now afford sophisticated communication technology that had only been available in the past to large  companies with big budgets."

    "Nortel's Business Communications Manager delivers the applications and  features that enable our employees to be more effective and responsive at a  price we can afford," says Alyson Horn, president, Alyson Horn Casting. " The new management capabilities delivered in the BCM enhancements will make  ongoing management simple. We're also implementing the new contact center application to help us better manage our increasing call volume; it's a  great tool for our business."

    According to a recent Nortel survey to more than 1,000 small and medium  businesses around the world, data networking, wireless LAN and security  software and devices are the top three technologies SMBs are most likely to  purchase in 2006. Nortel's SMB portfolio of products and enhancements include:

TORONTO, Canada, June 12 /PRNewswire/ --

@@start.t1@@      -  Business Ethernet Switch 100 Family - Provides cost-effective,
          easy-to-use desktop connectivity and delivers power for devices such
          as IP phones and wireless access points. This reduces wiring
          requirements and costs, and simplifies employee moves now and into the
          future.
      -  Business Secure Router 222 - Delivers low-cost connectivity to the
          Internet or IP networks and enables greater employee flexibility for
          work locations and hours via secure connectivity from home or
          elsewhere.
      -  Business Access Point 120 - Provides simple, secure wireless data and
          voice connectivity from anywhere, at anytime to allow employees to be
          more productive and accessible.
      -  Business Element Manager - Provides a simple and consistent network
          management interface across the SMB portfolio to streamline repetitive
          tasks and simplify network operations.
      -  Business Communication Manager 4.0 - Software enhancements to the
          BCM 200 and BCM 400 deliver enhanced simplicity and ease of
          management, as well as ad-hoc conferencing for up to 40 participants,
          expanded IP set support, enhanced security and voice-enabled WAN
          support.@@end@@

    Smaller businesses want to partner with resellers who can provide end-to - end technical support and who clearly understand their business. With the  launch of the new SMB portfolio, Nortel is introducing new SMB specific  sales training and on-demand marketing tools to assist its North America  channel partners. New channel programs include the SMB Connection Partner  Community, an online community established to facilitate communication  between Nortel and its SMB channel partners, and Blueprints for Success, a  tool developed with input from Nortel channel partners to identify best practices used when selling Nortel solutions to SMBs.

    "Nortel's SMB Connection simplifies online access to the latest SMB-  related news, events, programs and product information making it easier for  our sales team to stay up-to-date and be more effective selling Nortel  solutions," said Barry Gerhardt, president, Barry Communications. "This new  initiative for Nortel's partner community facilitates two-way communication  and will help strengthen the relationship between Nortel and its partners  focused on SMB."

    In Europe, Nortel recently announced the addition of an SMB program to  its Accelerate partner initiative for new and existing partners that sell  to companies with up to 250 employees. The program is designed to  accelerate the profitability of these partners and increase the adoption of  Nortel technology in the SMB market throughout EMEA.

TORONTO, Canada, June 12 /PRNewswire/ --

    About Nortel

TORONTO, Canada, June 12 /PRNewswire/ --

    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.

TORONTO, Canada, June 12 /PRNewswire/ --

    Certain statements in this press release may contain words such as " could", "expects", "may", "anticipates", "believes", "intends", "estimates ", "plans", "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. Further, actual results or events could differ materially from  those contemplated in forward- looking statements as a result of the  following (i) risks and uncertainties relating to Nortel's restatements and  related matters including: Nortel's most recent restatement and two  previous restatements of its financial statements and related events; the  negative impact on Nortel and NNL of their most recent restatement and  delay in filing their financial statements and related periodic reports;  legal judgments, fines, penalties or settlements, or any substantial  regulatory fines or other penalties or sanctions, related to the ongoing  regulatory and criminal investigations of Nortel in the U.S. and Canada;  any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and /or significant dilution of Nortel's existing equity positions resulting  from the finalization and approval of its proposed class action settlement,  or if such proposed class action settlement is not finalized, any larger  settlements or awards of damages in respect of such class actions; any  unsuccessful remediation of Nortel's material weaknesses in internal  control over financial reporting resulting in an inability to report  Nortel's results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel's remedial measures;  Nortel's inability to access, in its current form, its shelf registration  filed with the United States Securities and Exchange Commission (SEC), and  Nortel's below investment grade credit rating and any further adverse  effect on its credit rating due to Nortel's restatements of its financial  statements; any adverse affect on Nortel's business and market price of its  publicly traded securities arising from continuing negative publicity  related to Nortel's restatements; Nortel's potential inability to attract  or retain the personnel necessary to achieve its business objectives; any  breach by Nortel of the continued listing requirements of the NYSE or TSX  causing the NYSE and/or the TSX to commence suspension or delisting  procedures; (ii) risks and uncertainties relating to Nortel's business  including: yearly and quarterly fluctuations of Nortel's operating results;  reduced demand and pricing pressures for its products due to global  economic conditions, significant competition, competitive pricing practice,  cautious capital spending by customers, increased industry consolidation,  rapidly changing technologies, evolving industry standards, frequent new  product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any  material and adverse affects on Nortel's performance if its expectations  regarding market demand for particular products prove to be wrong or  because of certain barriers in its efforts to expand internationally; any  reduction in Nortel's operating results and any related volatility in the  market price of its publicly traded securities arising from any decline in  its gross margin, or fluctuations in foreign currency exchange rates; any  negative developments associated with Nortel's supply contract and contract manufacturing agreements including as a result of using a sole supplier for  key optical networking solutions components, and any defects or errors in  Nortel's current or planned products; any negative impact to Nortel of its  failure to achieve its business transformation objectives; additional  valuation allowances for all or a portion of its deferred tax assets;  Nortel's failure to protect its intellectual property rights, or any  adverse judgments or settlements arising out of disputes regarding  intellectual property; changes in regulation of the Internet and/or other  aspects of the industry; Nortel's failure to successfully operate or  integrate its strategic acquisitions, or failure to consummate or succeed  with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective  risk management strategy; and (iii) risks and uncertainties relating to  Nortel's liquidity, financing arrangements and capital including: the  impact of Nortel's most recent restatement and two previous restatements of  its financial statements; any inability of Nortel to manage cash flow  fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high  levels of debt, limitations on Nortel capitalizing on business  opportunities because of credit facility covenants, or on obtaining  additional secured debt pursuant to the provisions of indentures governing  certain of Nortel's public debt issues and the provisions of its credit  facilities; any increase of restricted cash requirements for Nortel if it  is unable to secure alternative support for obligations arising from  certain normal course business activities, or any inability of Nortel's  subsidiaries to provide it with sufficient funding; any negative effect to  Nortel of the need to make larger defined benefit plans contributions in  the future or exposure to customer credit risks or inability of customers  to fulfill payment obligations under customer financing arrangements; any  negative impact on Nortel's ability to make future acquisitions, raise  capital, issue debt and retain employees arising from stock price  volatility and further declines in the market price of Nortel's publicly  traded securities, or any future share consolidation resulting in a lower  total market capitalization or adverse effect on the liquidity of Nortel's  common shares. For additional information with respect to certain of these  and other factors, see Nortel's Annual Report on Form 10- K/A, Quarterly Report 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.

TORONTO, Canada, June 12 /PRNewswire/ --

    (x)Nortel, the Nortel logo and the Globemark are trademarks of Nortel  Networks.

ots Originaltext: Nortel Networks
Im Internet recherchierbar: http://www.presseportal.ch

Contact:
For further information: Christie Blake, +1-(978)-288-8439,
christbl@nortel.com; Giorgia Casnedi, +44-1628-43-3117,
casnedi@nortel.com



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