LG-Nortel Eases Path to Unified Communications with Innovative UC Devices Optimized for Microsoft Office Communications Server 2007

Market Wire, May, 2007

LG-Nortel, the LG Electronics and Nortel(1) (TSX: NT)(NYSE: NT) joint venture, is unveiling three new innovative unified communications (UC) devices compatible with Microsoft Office Communications Server 2007 and Microsoft Office Communicator 2007. The devices are designed to help enterprises drive increased productivity by simplifying the way employees communicate.

LG-Nortel's new family of UC devices enable unified communications with advanced collaboration and information sharing features such as VoIP, directory dialing, calendar integration, call diversion and presence checking. The devices also support the ability to securely access personal profile information such as contacts, calendars, voice mail and call logs.

Three models were designed to meet a varying set of user requirements and preferences - offering a desktop, USB or wireless version. High quality wideband provides a clearer voice experience and a biometric fingerprint log-in feature provides enhanced security. Ease of system administration is also made possible with automatic downloads of software and updates from the enterprise server - all designed to minimize time and cost of implementation and administration.

"We've been working closely with Microsoft to deliver innovative solutions that can simplify the transition to unified communications for enterprise customers," said Jae-Ryung Lee, chief executive officer, LG-Nortel. "LG-Nortel expects to have a strong impact in the market with the new family of advanced unified communications devices that will provide a rich and high-value experience to end users."

"Microsoft is proud to work with unified communications partners who provide innovative devices that enable a more intuitive and effective unified communications voice experience," said Chris Cullin, director of technical product management for the Unified Communications Group at Microsoft Corp. "Microsoft and LG-Nortel are working together to deliver a new level of value for enterprise customers who want to use the PC as a communications platform to better connect people, information and business processes."

LG-Nortel's innovative family of UC devices includes three models optimized for Office Communications Server 2007 and Office Communicator 2007. The LG-Nortel IP Phone 8540 features a large 5.7 inch color touch screen LCD display and delivers an improved communications experience including high quality wideband audio for clearer voice and added security functionality such as biometric fingerprint log-in capability. The LG-Nortel USB Phone adds USB phone functionality for PCs and the LG-Nortel Headset with Bluetooth® wireless technology adds un-tethered functionality.

General availability of these products is planned for September 2007 in select countries around the globe.

About LG-Nortel

LG-Nortel is a joint venture of LG Electronics and Nortel. Established in 2005, LG-Nortel provides leading edge telecommunications equipment and network solutions, spanning wired and wireless technologies, to service provider and enterprise customers in Korea and around the world. LG-Nortel is also actively developing next generation solutions for global markets, with over 1,000 skilled R&D engineers currently focused on wireless broadband technology evolution and the development of powerful new product lines. For more information on LG-Nortel, visit www.lg-nortel.com .

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.

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