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Nortel Demonstrates Rich Suite of IMS SIP-Enabled Services With IBM in New IMS Enablement and Innovation Center

Montpellier, France (ots/PRNewswire)

- Companies Collaborate on Integrated IMS Service Offerings
www.nortel.com
Nortel(x) (NYSE: NT; TSX: NT) is enhancing its IMS solution
through work with IBM in the IBM Telecommunications Solutions Lab
(TSL) in Montpellier, France.
In the new collaborative services integration environment of an
IMS enablement and innovation center, Nortel and IBM are showcasing a
live, integrated proof of concept IMS solution that can help
customers realize dramatically shortened IMS service deployment
times, simplified introduction of new services and faster routes to
next generation service revenue opportunities.
"IMS services collaboration is an integral part of the Nortel and
IBM relationship," said Sandy Aitken, IMS Solutions, IBM
Communications Sector. "The work we are doing together in the lab,
demonstrating a truly integrated IMS solution, is an important step
towards removing cost and complexity barriers for service providers."
Nortel's open, standards-based IMS solution is being trialed
globally by operators across wireless, wireline and cable markets.
The facility features a live IMS lifecycle solution comprised of
Nortel's commercially available IMS core products and applications
and IBM's standards-based service creation and delivery platforms
built on IBM technology including BladeCenter servers and WebSphere
and Rational software.
Initial applications to be supported in the Montpellier center
include call tones that allow callers to initiate a multimedia
session with a customized greeting; mobile multiplayer gaming to
enable online play of a variety of multiplayer games accessible from
PCs and mobile devices; immediate conferencing that gives users
ability to instantly launch a conference call to a group of people
across a variety of devices and push to content that allow users to
quickly and easily trade files, media or website with the click of a
button. Nortel is also showcasing its current IMS applications, such
as the Multimedia Communication Server (MCS) 5200 application server,
in the center.
In 2006, Nortel plans to expand its Customer Technology Innovation
Center in Richardson, Texas with IBM's service creation capabilities
to create a similar IMS enablement and innovation center.
To round out their integrated IMS solution in the Montpellier
center, Nortel and IBM are also collaborating with leading
applications and service enablement companies Brooktrout Technology,
jNetX Inc., Qualphone Inc., Sonim Technologies and Terraplay to help
operators broaden their portfolio of next generation services
integrated into an overall IMS service architecture. Additional
companies are expected be added as new capabilities are introduced.
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. 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.
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 ongoing 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 Nortel's inability to access
its shelf registration statement filed with the United States
Securities and Exchange Commission (SEC); 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; general stock market volatility; 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; any
undetected product defects, errors or failures; the future success of
Nortel's strategic alliances; and certain restrictions on how Nortel
and its president and chief executive officer conduct business. 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.
(x) Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.

Contact:

For further information: Christie Blake, +1-(978)-288-8439,
christbl@nortel.com; Isabelle Tadmoury, +33-(0)169551291,
tadmoury@nortel.com

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