Nortel, Arcor Integrate Mobile Phones into Corporate Networks

FRANKFURT, GERMANY--(Marketwire - April 2, 2008) - Arcor, one of Germany's leading telecommunications companies, aims to add mobility features to their hosted VoIP Business offering - Central Phone - using a Nortel(1) (TSX:NT)(NYSE:NT) VoIP solution. The solution allows workers to connect mobile phones into their company's corporate network enabling business travellers to use the same phone functionality and services wherever they are - whether they use their mobile or their desk phone. Recently, Arcor demonstrated the new Central Phone mobility functionalities at the CeBIT 2008 trade fair in Hannover, Germany. The new functionalities are expected to be available to Arcor clients before the end of this year.

The new functionality from Arcor's Central Phone service also enables subscribers to be reached on one number, with one common voice mailbox connecting to whichever device is most convenient - fixed line or wireless phone. Nortel's VoIP solution makes it possible for businesses to interconnect standard GSM phones into the hosted corporate communications system within Arcor's Central Phone network. This interconnection makes it possible for users to pass on an ongoing phone call from their mobile to their fixed phone without interrupting the call.

"Arcor selected Nortel for its technology expertise in both the wireline and the wireless area and for its ability to design and implement a fixed mobile convergence solution. Thanks to this expertise, Arcor will soon be able to offer customers enhanced hosted VoIP business services through Central Phone that allow them to enhance their productivity through effortless, seamless calling across multiple types of phones," says Walter Vorderhuber, head of Product Management VAS, Arcor. "Now that both fixed-line calls and mobile calls are managed by the same network, we can provide our customers with simple and affordable services that are more flexible than ever before."

Workers in the office and on the road can now have all the advantages of the corporate network on their mobile phones, including short internal extension numbers to contact colleagues within the same Central Phone corporate network. Also, a presence feature for switchboard assistants allows them to quickly see if a worker is at their desk or on a mobile phone for redirecting calls.

"The true mobility features of Arcor's Central Phone service make it simple for customers to connect fixed and mobile phone services with the convenience of one easy phone number resulting in the same cost-saving benefits common to corporate networks. Arcor has launched an integrated solution that is simple to manage, simple to deploy and truly cost-effective," says Wim te Niet, president Central Europe, Nortel.

The new Central Phone capabilities are provided by the Nortel Communication Server 2000 and the Nortel Application Server 5200 using SIP Mobility extensions to integrate the GSM environment and the hosted VoIP environment. The solution incorporates services from Nortel's Global Services portfolio including service development support for click-to-call functionality.

Nortel is providing VoIP and multimedia solutions to many of the world's leading service providers, including Bell Canada, Rogers Communications, SaskTel, Telus, Verizon, Embarq, Verizon Business, British Telecom, Cable & Wireless and Neuf Cegetel. According to Dell'Oro Group, Nortel is the worldwide leader in carrier VoIP and has maintained that position for the last six years (2002-2007). Nortel has deployed over five million SIP lines with more than 150 operators globally and has shipped more than 73 million carrier VoIP ports.

About Arcor

Arcor is the strongest competitor in the German fixed-line market. Arcor has been steadily expanding its leadership position among the alternative telecommunications providers ever since the German market was first opened to competition ten years ago.

Arcor's broadband communications connections link together telephone, Internet, TV and entertainment offers. Private customers benefit from transparent and attractive flat-rate prices for telephone and Internet services.

Arcor develops intelligent communications solutions for the entire spectrum of corporate customers ranging from small and mid-size firms through to globally active corporations. The range of services includes voice and Internet connections with flexible bandwidths, video- and telephone conference, service numbers as well as internal company networks that provide secure exchange of data between various company locations.

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 undenicer 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.

For more information, please contact
Nortel
Sabine Werb
+49 69-6697-1906
Email: sabine.werb@nortel.com
Website: www.nortel.com
or
Weber Shandwick
Thorsten Wiedemer
+49 89-380179-83
Email: nortelteam@webershandwick.com
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