TORONTO, ONTARIO -- (MARKET WIRE) -- 02/26/07 -- Nortel(1) (TSX: NT) (NYSE: NT) today unveiled new wireless LAN (WLAN) capabilities and solutions that enable business to use their existing WLAN network to deploy advanced enterprise applications such as location tracking, advanced security solutions, and voice over the WLAN network.

With new voice quality features based on IEEE 802.11e standards, businesses now have greater flexibility when planning for voice over WLAN as part of a unified communications solution. Additionally, Nortel has launched two simple and cost-effective upgrades to help increase the security of wireless LAN networks, and help improve overall productivity by allowing businesses to use the network to quickly locate people, company assets and equipment that are dispersed across their campus.

"As more of our employees become connected to our wireless LAN network, mobile PCs, notebooks and PDAs will increasingly be relied on as voice devices," said Cary Houck, senior network engineer, ProMedica Health System which serves northwest Ohio and southeast Michigan in the United States. "By using the enterprise wireless LAN to support high-quality voice calls, Nortel's WLAN solution will help ensure the benefits of unified communications can follow employees across our campus."

The new voice capabilities on the Nortel Wireless LAN 2300 Series will ensure that voice quality is maintained in the presence of other wireless traffic and will allow customers to optimize the performance of a wide variety of mobile devices that will also be adopting the standard. This includes the new Nortel WLAN Handset 6100 Series, planned for availability in 2Q07. These premise-based WLAN handsets are planned to fully integrate with Nortel's enterprise VoIP and WLAN platforms and provide the flexibility of 802.11 a/b/g support.

The two new solutions introduced on the Nortel Wireless LAN 2300 platform allow businesses to layer new business applications over their existing wireless LAN based on their unique requirements.

Nortel's new Asset Tracking and Management solution enables businesses to use their WLAN network to provide real-time location and tracking of up to 10,000 individual assets or people with a location accuracy of one to three meters. The solution combines the Nortel WLAN 2300 Series with Ekahau real-time location system, enabling the use of RF tags that determine their location by interacting with Nortel WLAN 2300 Series access points. This eliminates the need to create a discrete network of RFID readers used solely for asset tracking purposes, resulting in a faster, simpler, and more cost-effective deployment.

Nortel's new Wireless Intrusion Detection and Prevention (WIPS) solution gives customers an optional advanced WIPS security upgrade. By allowing the enterprise to leverage their existing Nortel WLAN infrastructure, Nortel eliminates the cost and complexity of installing and managing a separate network of security sensors. The solution uses WIPS technology from AirDefense to allow Nortel WLAN customers to turn WLAN 2300 Series access points into security sensors that can identify and protect the enterprise network against over 230 different types of threats that can target the wireless network. The solution also provides security policy management and enforcement, and scales from a single office to hundreds of locations.

"Nortel is creating valuable new applications that enterprises can very easily deploy using their Nortel wireless LAN networks," said Aziz Khadbai, general manager, Converged Data Networks, Nortel. "Our work with AirDefense and Ekahau represents an infusion of their best-of-breed technology to extend the functionality of our enterprise mobility solutions with simple and economical advanced wireless LAN applications."

AirDefense and Ekahau products have undergone rigorous testing, integration and market-readiness processes to assure resellers and customers of a seamless implementation with the WLAN 2300. The complete solutions are available today through Nortel and Nortel's value-added resellers and integrators.

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.

Contacts:
Nortel
Mary Pretotto
(905) 863-7777
Email: maryp@nortel.com
Website: www.nortel.com