New Integrated Nortel Client offers IBM Lotus Notes Users Multimedia Capabilities

Nortel(1) (TSX: NT) (NYSE: NT) and IBM have worked together to embed Nortel's industry-leading multimedia communications solution into IBM Lotus Notes, adding unified communications capabilities for the millions of Lotus Notes customers around the world.

The new Nortel Multimedia Client for IBM Lotus Notes makes it simple for Lotus Notes users to access the capabilities of Nortel's award winning Multimedia Communication Server (MCS) 5100.

An effective work environment isn't just about how well applications work, it's also about how well they incorporate the most advanced technologies to maximize the way people work and communicate together. Nortel's MCS 5100 integration with the Lotus Notes desktop environment opens up a new array of communication capabilities through multimedia features.

This plug-in will drive value to Lotus Notes users by making it easier to access telephony and multimedia capabilities from within the Notes application, enhancing their collaborative environment and ability to make efficient, timely decisions from wherever they are.

"Unified communications is a key enabler toward simplifying and streamlining business processes," said Wes Durow, vice president of marketing, Enterprise, Nortel. "Improving how people work and communicate helps today's enterprise be more successful by ensuring each available tool is designed to enhance productivity and efficiency. Put simply, time saved translates to money saved."

With the Nortel IBM Lotus Notes plug-in, calls can be made and received from within Lotus Notes emails, either from a call log directory or from the existing Lotus Address book without looking up numbers.

Nortel Multimedia Client for IBM Lotus Notes also allows for meeting reminders with click-to-call access to conference bridges directly within the Lotus Notes environment. Embedding conference call details and enabling click to call access to these meetings makes setting up and attending conference calls more efficient. Users no longer have to go to one application for their meeting details and then another to make the call.

Nortel will be demonstrating the Nortel Multimedia Lotus Notes Client at Lotusphere 2007 and showing how Lotus Notes users can improve their productivity and efficiency through the integration of Multimedia into IBM Lotus Notes. Nortel is an Associate-level sponsor of the conference and will demonstrate IBM centric solutions at Booth 401/402 of the exhibit hall.

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. 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.

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;