Leading Middle East Hotel Group Deploys IP Voice, Data Network from Nortel; Announced at GITEX, Sophisticated VoWLAN Solution to Enhance Guest Services

Business Wire, Sept 27, 2005

DUBAI, United Arab Emirates -- Nortel (NYSE:NT) (TSX:NT) has deployed a fully converged IP voice and data network to provide advanced communication capabilities for UAE-based Habtoor Hospitality hotels.

The new solution provides applications as diverse as VoWLAN (Voice over WLAN) at the pool side, IP telephony, and a complete interface between the property management systems (PMS) and the billing systems.

The unique VoWLAN solution, designed to support campus mobility, enables Habtoor Hospitality to further improve customer responsiveness by allowing mobile staff in different service and engineering departments to replace unpredictable 'walkie talkie' systems with state-of-the-art VoWLAN headsets.

Nortel made the announcement at GITEX (Gulf Information Technology Exhibition), one of the world's biggest IT shows. The Habtoor Hospitality deployment was completed in conjunction with Nortel's channel partner in the UAE, PACC Mideast Data Systems.

"The hospitality sector in the Middle East, especially in the UAE, has become highly competitive, and differentiation relies very much on building a reputation for luxury, elegance and superior customer service," said Rahim Abu Omar, chief executive, Habtoor Hospitality, Al Habtoor Group LLC. "When we decided to build a new five-star resort in Dubai, it was critical for us to identify a technology vendor that could not only provide best-of-breed technology, but also had a proven track record in hospitality and could understand our business."

The group has made Nortel the standard across its four properties in the UAE, including its new flagship, the Habtoor Grand Resort and Spa, the Metropolitan Palace Hotel, the Metropolitan Hotel Dubai and the Metropolitan Deira Hotel.

"Nortel has a proven track record in the hospitality sector, delivering customized, reliable and high performance solutions, as well as new, open standard and improved services," said Ramin Attari, vice president, Middle East, Nortel.

"Besides equipping the new hotel, Nortel and PACC MidEast Data Systems were able to undertake a complete technology refresh in three hotels without compromising the guest environment and allowing Habtoor Hospitality to focus on its core business in owning and managing world-class hotels," Attari said.

The Al Habtoor deployment includes Nortel's IP telephony flagship Communication Server 1000, which provides unified messaging and a high-quality, secure integrated WLAN. The core data network consists of Nortel's Ethernet Routing Switch 8600 and Nortel Ethernet Routing Switch 5520, which deliver Power over Ethernet to the edge. This solution is managed by Nortel's Enterprise Management System, a single converged management platform for data and IP telephony that provides seamless access and mobility features. The whole package delivers 'anytime, anywhere' advanced telephony and messaging services.

About Habtoor Hospitality

The Al Habtoor Group owns and operates hotels throughout the Middle East through its subsidiary Habtoor Hospitality. Established more than 25 years ago the group is recognised as the most experienced Dubai-based international hotel company and is determined to retain this position. The company has developed three brands and each reflects a different market position: Habtoor Grand Hotels & Resorts are five-star plus properties, which reflect 'A Touch of Arabia.' The Metropolitan Palaces are five-star and promise 'An Oasis of Opulence,' whilst the Metropolitans are first-class international hotels that offer a 'Smile of Arabia.' And Lebanon's first, fully fledged theme park - Habtoorland - a Phoenician realm of fantasy.

About Nortel

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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. 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.> Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.

Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity, and any related potential dilution of Nortel's common shares; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); ongoing SEC reviews, which may result in changes to Nortel's and NNL's public filings; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;