October 2, 2008

Nortel Continues to Expand WiMAX Ecosystem

Nortel(1) (TSX: NT)(NYSE: NT) is again broadening the scope of its end-to-end WiMAX solution to encompass more innovative applications, unique features and a variety of devices that network operators can offer to businesses and consumers in underserved broadband markets.

Since combining strengths with Alvarion(R) (NASDAQ: ALVR)(2) in a strategic WiMAX agreement this past June, Nortel has aligned efforts with a number of other industry players including IBM,(2) WiChorus,(2) Quanta Computer(2) and Accton Wireless Broadband,(2) to bring a comprehensive WiMAX solution to market faster and at lower costs.

"We recognize the path to success is based on an open model with best-in-breed partnerships that draw on one another's strengths," said Scott Wickware, general manager, WiMAX, Nortel. "For Nortel, our sweet spot is the integration of a complete solution and the ability to enable operators to squeeze the highest revenue out of their WiMAX network with our business and consumer applications."

"In many cases, WiMAX operators are new to wireless and need assistance on delivering the end-to-end solution. Backhaul, applications like VoIP, professional services, devices and enterprise offerings are all part of a WiMAX build and where Nortel excels," said Wickware.

In line with this philosophy, Nortel is leveraging its expertise in the enterprise segment and its existing alliance with IBM to deliver unified communications capabilities for Lotus Notes users over Mobile WiMAX technology. This provides access to a range of services including IP telephony, instant messaging, web conferencing as well as video chat capabilities, regardless of location and device. For WiMAX service providers, this can translate into new opportunities to expand their addressable markets.

Nortel is also launching the "VoIP to the MAX," campaign, an end-to-end, fully-integrated and cost-effective Carrier VoIP and WiMAX offering that enables services providers to offer advanced IP voice and multimedia services while de-risking their technology deployment, achieving faster time to market and unlocking new revenue opportunities. The offering consists of Nortel's comprehensive Mobile WiMAX portfolio and Adaptive Application Engine (A2E), a carrier-grade, flexible multimedia server software.

Also new to Nortel's end-to-end WiMAX solution is the WiChorus Home Agent,(2) which provides operators with subscriber and content management, as well as network optimization capabilities that can help them leverage the Internet to drive increased Average Revenue Per User and profitability. Nortel will include WiChorus's Home Agent as part of the core of its WiMAX network solution.

On the WiMAX device front, Nortel is working with Quanta Computer and Accton Wireless Broadband in Taiwan to deliver Nortel-branded 802.16e devices including PCMCIA cards, USB adapters, indoor gateways, window mount antennas and outdoor gateways working in the 2.3, 2.5 and 3.5 GHz frequency bands.

For live demonstrations of Nortel's WiMAX solution, including IBM Lotus Notes collaboration software over WiMAX and "VoIP to the MAX," visit Nortel at booth # 801 and Alvarion at booth # 711 during WiMAX World in Chicago, Oct. 1-2. IBM Lotus Notes software adoption has grown to 140 million users worldwide and the latest versions come with the popular and award-winning Sametime unified communications and instant messaging tool. Over 120 million people worldwide are licensed to use Sametime software every day to gain instant access to people and information, and improve productivity.

Nortel has won contracts for commercial deployment of WiMAX technology with companies around the world including Comstar in Russia, Wind Telecom in the Dominican Republic, Quad-Cities Online and ITT Corporation in the United States, Chunghwa Telecom and Far EasTone in Taiwan, and the Alberta Special Areas Board in Canada. Nortel is also engaging in WiMAX trials with many customers including Golden Telecom in Russia, Korea Telecom, TVA in Brazil, and Charles Street Partners in the United States.

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.

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

(2)This is a 3rd party link as described in our Web linking practices.

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

 Contacts: Nortel Camille Beasley (972) 684-2577 Email: [email protected]  Nortel Greta Brown +44-(0)1628-432968 Email: [email protected] Website: www.nortel.com

SOURCE: Nortel