FastLane Offers Enterprise Services Direct from Nortel Through Channel Partners

Market Wire, May, 2007

Help is on the way for enterprises seeking to speed the benefits and reduce the risks of migrating to VoIP, unified communications and other cutting-edge convergence technologies, thanks to the new FastLane portfolio from Nortel(1) (TSX: NT)(NYSE: NT).

Available through channel partners, Nortel's FastLane portfolio includes pre-packaged implementation, support and management services for enterprises. These services provide direct access to Nortel technical expertise for faster issue resolution, greater network availability and lower total cost of ownership.

FastLane also allows national and international companies to obtain consistent services and pricing across multiple locations, saving time and cost in budgeting, contracting and acquisition.

For Nortel channel partners seeking improved profitability, FastLane provides an opportunity to attract new customers and build on existing customer relationships by offering expanded services, advanced technology support and broader geographic coverage with minimal additional investment.

"We are at a critical inflection point with our channel strategy as we look to drive strong enterprise and services growth," said Dietmar Wendt, president, Global Services, Nortel. "FastLane gives our customers access to the best services and technical support available for their networks while reinforcing and strengthening the Nortel brand and providing new revenue potential for our channel partners."

"The challenge for many channel partners today is how to go about entering new markets and selling new technologies quickly in order to increase profitability," said Rodney Hyde, president of Enterprise Systems Corporation, a Nortel Elite Advantage Partner based in Houston, Tex.

"FastLane services allow us to offer full product and services solutions, and to deploy, maintain and manage networks with optimum efficiency and performance," Hyde said. "This means greater value for our customers with minimal risk and minimal start-up costs for them and for us."

Available today in North America, FastLane includes implementation, support and management services from Nortel's Global Services portfolio, with plans for additional services in the near future. FastLane services are scheduled to be available in the Europe, Middle East and Africa (EMEA) region in the second quarter and in the Caribbean and Latin America (CALA) and Asia Pacific regions in the third quarter of 2007.

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 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 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.

Contacts: Nortel Mark Buford (972) 362-1512 Email: mark.buford@nortel.com Website: www.nortel.com