Deloitte Selects Nortel to Provide Managed Global Telepresence Services

Known around the world for the excellence of the professional services provided by its member firms, Deloitte's global organization has chosen Nortel(1) (TSX: NT)(NYSE: NT) as a global managed services provider for telepresence, video conferencing and associated multimedia services.

Under a new managed services agreement with Nortel, Deloitte's global organization and as many as 130 Deloitte member firm locations around the world will be able to obtain telepresence and open standards-based video conferencing services.

With oil prices fueling skyrocketing airfares and an increasing global outcry for environmental responsibility, organizations like Deloitte are seeking viable business alternatives to travel. Managed telepresence is one such alternative.

"Being able to meet clients and colleagues in real time without travel is an efficient, effective and environmentally considerate way to address their needs," said Yezdi Pavri, managing partner for Deloitte Canada's Toronto office.

"We expect to drive real savings in time, cost and carbon footprint," said Dietmar Wendt, president, Global Services, Nortel. "We're providing a reliable, 'always on' resource for making more timely decisions, building stronger team and client relationships, and enhancing productivity. And all with a rapid payback that makes it surprisingly affordable."

By Nortel's calculations, a company spending as much as US$23 million annually on travel can use telepresence to recover as many as 385,000 hours of lost productivity, reduce its carbon footprint by up to 4,200 tons and save up to US$7 million.

One company cited in "Building the Successful Virtual Workplace," a 2007 Nemertes Research benchmark of IT executive best practices, found that it could cover the cost of multiple, dedicated, high-end telepresence facilities and managed telepresence service with as little as a two- to three-percent reduction in international travel.

Nortel's services-powered Telepresence Solution makes set-up and operation of video meetings as easy as walking into a conference room. This will allow Deloitte professionals to focus on the meeting rather than the mechanics.

By using Nortel's global infrastructure of Multimedia Network Operations Centers (MNOCs), professionals from Deloitte and its member firms will be able to seamlessly connect with each other and with clients using open video systems, even at times when travel is restricted.

Making real-time visual communications and collaboration across town and across borders more immediate and effective lessens the need for travel, resulting in lower costs, higher productivity and reduced carbon footprint.

Integral to its Unified Communications offering, Nortel's services-powered Telepresence Solution includes implementation, proactive network monitoring and 24/7 support for carrier-grade reliability, network performance management, and such concierge-like amenities as assisted scheduling and conference set-up.

Nortel's services-powered Telepresence Solution integrates open systems from multiple equipment providers, allowing customers to take full advantage of investments in both new and existing video systems.

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. Polycom is a trademark of Polycom, Inc.