Nortel Signs Agreement with TELMEX for Enterprise Hosted IP PBX Offering

Hosted Service Approach Helps Protect Investment, Promote Innovation

Frankfurt am Main, (PresseBox) - Nortel(1) (TSX: NT)(NYSE: NT) has been selected by TELMEX, the leading telecommunications company in Mexico, to provide hosted IP telephony and multimedia services for delivery of a new Hosted IP PBX offering to medium and large enterprises nationwide.

Under an agreement announced today, Nortel is supplying a complete, end-to-end IP services solution from the Nortel Global Services portfolio using network equipment owned and managed by Nortel.

"This defines a new services delivery model for secure communications, reliable infrastructure and advanced applications in Mexico´s corporate market," said Pablo Vazquez, chief executive officer for Nortel in Mexico and Latin America. "This model is technology agnostic, leveraging a broad spectrum of advanced, vertical applications while helping to protect customer technology investments."

TELMEX Hosted IP PBX allows enterprises to benefit from unified communications, audio and video conferencing, collaboration tools, mobility applications and other productivity-enhancing services without the expense of installing, operating and maintaining a network.

The Nortel solution for TELMEX is based on Nortel´s Communication Server 2000, an IMS-ready, carrier-grade superclass softswitch that supports a wide range of voice and multimedia business features based on the open, industry-standard SIP multimedia protocol.

Nortel´s Global Services portfolio offers a full range of network application, implementation, management and support services for end-to-end, multi-vendor, multi-technology networks.

Nortel provides network managed services for more than 100 enterprises, carriers, service providers and cable operators worldwide through specialists at network management centers in Europe, Asia and North America. These centers maintain 24/7 management vigilance, monitoring customer networks for potential problems before they happen and taking the necessary corrective actions to maintain operational integrity. They also monitor and update network defenses to maintain security against viruses, hackers and other threats.

Nortel GmbH

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.

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