Nortel Introduces Affordable, Sophisticated Communications Solutions for Small and Medium Businesses

Toronto, Canada (ots/PRNewswire) -

- New Portfolio Designed to Simplify Operations While Delivering
Increased Productivity, Collaboration

TORONTO, Canada, June 12 /PRNewswire/ --

Nortel(x) (NYSE:NT; TSX: NT) today announced a new portfolio of
voice, data and wireless products designed to help small and medium
businesses (SMB) boost employee productivity and satisfaction,
streamline business operations and costs, and deliver superior
customer service.

For nearly 20 years, Nortel has provided voice communication
solutions to more than 15 million small and medium business
employees in more than 80 countries, and its award-winning Business
Communication Manager (BCM) 50 sold more than 22,000 units globally
during its first year of availability. Nortel is replicating that
success with the expansion of its SMB portfolio and is increasing
focus on programs, training and tools to support channel partners
and to ultimately drive revenue in this critical, growing market
segment.

Nortel's expanded SMB portfolio brings the power of wireless LAN,
Ethernet switching, security and converged voice and data to the SMB
market . The portfolio will be available in August 2006 and consists
of four new products that address unique requirements, challenges
and budgets of smaller businesses. The new SMB portfolio also
includes enhancements to Nortel's BCM.

"We began to realize the power of communications technology last
year when we installed Nortel's BCM. It delivers big-system features
and capabilities at affordable, small business owner pricing -
giving us both big- company technology and small-company personal
touch," said Jim Pears, president, Metro Dodge Chrysler Jeep. "We
are now using a complete SMB system from Nortel to deliver a
superior service experience for our customers. We're able to provide
customers with IP phones and a wireless hotspot in the service
waiting area and our service manager is never out of reach with his
PDA and soft phone."

"Nortel is delivering solutions that make new technologies
relevant and beneficial to small and medium businesses," said Alex
Pierson, general manager, Enterprise and Small-Medium Business
Communication Systems, Nortel . "The right business communications
system can completely change the playing field for a smaller
company, but solutions must be tailored for smaller businesses,
affordable and easy to implement and use. With our new portfolio,
small and medium businesses can now afford sophisticated
communication technology that had only been available in the past to
large companies with big budgets."

"Nortel's Business Communications Manager delivers the
applications and features that enable our employees to be more
effective and responsive at a price we can afford," says Alyson
Horn, president, Alyson Horn Casting. " The new management
capabilities delivered in the BCM enhancements will make ongoing
management simple. We're also implementing the new contact center
application to help us better manage our increasing call volume; it's
a great tool for our business."

According to a recent Nortel survey to more than 1,000 small and
medium businesses around the world, data networking, wireless LAN
and security software and devices are the top three technologies
SMBs are most likely to purchase in 2006. Nortel's SMB portfolio of
products and enhancements include:

TORONTO, Canada, June 12 /PRNewswire/ --

- Business Ethernet Switch 100 Family - Provides cost-effective,
easy-to-use desktop connectivity and delivers power for devices such
as IP phones and wireless access points. This reduces wiring
requirements and costs, and simplifies employee moves now and into the
future.
- Business Secure Router 222 - Delivers low-cost connectivity to the
Internet or IP networks and enables greater employee flexibility for
work locations and hours via secure connectivity from home or
elsewhere.
- Business Access Point 120 - Provides simple, secure wireless data and
voice connectivity from anywhere, at anytime to allow employees to be
more productive and accessible.
- Business Element Manager - Provides a simple and consistent network
management interface across the SMB portfolio to streamline repetitive
tasks and simplify network operations.
- Business Communication Manager 4.0 - Software enhancements to the
BCM 200 and BCM 400 deliver enhanced simplicity and ease of
management, as well as ad-hoc conferencing for up to 40 participants,
expanded IP set support, enhanced security and voice-enabled WAN
support.

Smaller businesses want to partner with resellers who can provide
end-to - end technical support and who clearly understand their
business. With the launch of the new SMB portfolio, Nortel is
introducing new SMB specific sales training and on-demand marketing
tools to assist its North America channel partners. New channel
programs include the SMB Connection Partner Community, an online
community established to facilitate communication between Nortel and
its SMB channel partners, and Blueprints for Success, a tool
developed with input from Nortel channel partners to identify best
practices used when selling Nortel solutions to SMBs.

"Nortel's SMB Connection simplifies online access to the latest
SMB- related news, events, programs and product information making
it easier for our sales team to stay up-to-date and be more
effective selling Nortel solutions," said Barry Gerhardt, president,
Barry Communications. "This new initiative for Nortel's partner
community facilitates two-way communication and will help strengthen
the relationship between Nortel and its partners focused on SMB."

In Europe, Nortel recently announced the addition of an SMB
program to its Accelerate partner initiative for new and existing
partners that sell to companies with up to 250 employees. The
program is designed to accelerate the profitability of these
partners and increase the adoption of Nortel technology in the SMB
market throughout EMEA.

TORONTO, Canada, June 12 /PRNewswire/ --

About Nortel

TORONTO, Canada, June 12 /PRNewswire/ --

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.

TORONTO, Canada, June 12 /PRNewswire/ --

Certain statements in this press release may contain words such as
" could", "expects", "may", "anticipates", "believes", "intends",
"estimates ", "plans", "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 finalization and approval of its
proposed class action settlement, or if such proposed class action
settlement is not finalized, any larger settlements or awards of
damages in respect of such class actions; 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;
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 objectives; 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 credit 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 credit facilities; 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 any future 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 Form 10- K/A, Quarterly
Report 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.

TORONTO, Canada, June 12 /PRNewswire/ --

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

ots Originaltext: Nortel Networks
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Contact:
For further information: Christie Blake, +1-(978)-288-8439,
christbl@nortel.com; Giorgia Casnedi, +44-1628-43-3117,
casnedi@nortel.com