DALLAS, TEXAS -- (MARKET WIRE) -- 02/08/07 -- Nortel(1) (TSX: NT)(NYSE: NT) today announced new partners to its IP Multimedia Subsystem (IMS) Developer Program designed to accelerate interoperability and convergence across wireless, wireline and cable networks and to provide a more compelling communication experience for users, regardless of their network connection or device.

Nortel's IMS Developer Program allows services providers to create and deploy new communication services quickly and cost effectively by providing an open testing and interoperability environment that utilizes web based tools to speed the delivery of new IP-based applications and services on a common infrastructure.

BEA Systems, IP Unity Glenayre, and Vantrix are three of the companies that recently joined Nortel's IMS Developer Program. BEA Systems, Inc. is working with Nortel to help network operators rapidly create and deliver enhanced multimedia and IMS-based converged services. BEA and Nortel have completed interoperability testing between Nortel's IMS core and BEA WebLogic® SIP Server, one of the industry's leading converged Java EE-IMS-SIP application server.

"Network operators are committed to building out a services layer to deliver next-generation IMS services and enhance revenue opportunities," said Mike McHugh, vice president and general manager, BEA WebLogic Communications Platform, BEA Systems. "BEA WebLogic SIP Server, a powerful, converged Java EE-SIP-IMS application server, can help provide the foundation for the IMS services layer. We're thrilled to be part of Nortel's IMS Developer Program, which is designed to help network operators implement a robust IMS solution."

In addition, Nortel and BEA are scheduled to conduct a live demonstration using a TeleVoting application from Ericpol at Nortel's booth (#145 in Hall 8) at 3GSM World Congress, Feb. 12-15 in Barcelona. This demonstration is designed to show how to hold American Idol-style interactive voting competitions and invite target audience/consumers to submit votes via IP based video enabled devices. The demonstration includes BEA WebLogic SIP Server and Nortel's IPTV, Web Services and IMS solutions.

"Nortel's IMS Developer Program ignites network convergence and IMS adoption by providing an open testing environment featuring a complete network architecture with multiple applications and devices," said Alf Decardenas, general manager, Converged Multimedia Networks, Nortel. "This will help fuel innovative communication services that will change the nature of communications while also helping to increase service provider competitive advantage and revenue opportunities - another example how Nortel's Business Made Simple approach benefits customers."

BEA, IP Unity Glenayre and Vantrix all recently completed a series of interoperability tests with Nortel in the company's advanced technology labs. IP Unity Glenayre, a leader in carrier-grade messaging and enhanced media services solutions, recently performed successful interoperability testing of its Mereon(TM) Media Server and Unified Messaging applications with BEA's with BEA WebLogic SIP Server over Nortel's IMS core infrastructure.

Vantrix, the forerunner in mobile rich media optimization, recently performed interoperability testing of its video surveillance application using its SPOTxde LIVE video gateway and BEA's WebLogic SIP Server over Nortel's IMS core infrastructure.

The Nortel IMS Developer program provides a complete end-to-end evaluation and interoperability testing environment with complete program tools and specifications for delivering next generation IP-based services and applications. It allows member developers that utilize industry-standard protocols, including 3GPP/3GPP2 IMS/MMD and TISPAN interfaces, and PacketCable Network-based Call Signaling (NCS) to work with Nortel for delivery of value-added services and applications to service providers. The Nortel IMS Developer program is an extension to the Nortel Carrier VoIP and Multimedia Business Partner Program.

Nortel has successfully completed more than 100 IMS interoperability tests/projects/trials with developers, customers and vendors across multiple different domains.

For more information on BEA, see bea.com(2); for information on IP Unity Glenayre, see ipunity-glenayre.com(2) and for information on Vantrix see vantrix.com(2).

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. 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 approval of its proposed class action settlement; 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; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; 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 objective; 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 support 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 support facility; 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 the 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 Form10-K/A, 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.

Contacts:
Nortel
Jamie Moody
(972) 684-7167
Email: moodyjam@nortel.com

Nortel
Greta Brown
+44 1628 432968
Email: gretab@nortel.com
Website: www.nortel.com