Nortel's Adaptive Application Engine Gives Service Providers New Revenue-Generating Web 2.0 Voice and Multimedia Capabilities

Innovative Software Provides Presence, Collaboration, Conferencing and Video Over Any IP Broadband Connection

• Press Release
• Source: Nortel
• On 6:00 am EST, Thursday February 12, 2009

TORONTO, ONTARIO--(MARKET WIRE)--Feb 12, 2009 -- Nortel's(1) (Toronto:NT.TO - News)(Other OTC:NRTLQ.PK - News) Adaptive Application Engine software is now available and is packed with a wide-range of revenue-generating voice and multimedia applications like Federated IM, presence, collaboration, conferencing, and video.

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The Adaptive Application Engine software is a core element of Nortel's carrier applications within the Carrier VoIP portfolio and allows service providers to deliver Web 2.0(2) concepts like social networking(2), blogs(2), and wikis(2) with IP voice and multimedia over any IP broadband connection. Since the product was announced in May 2008, it has received customer traction and is currently in trial with leading carriers across the globe.

"Nortel remains 100% dedicated to improving our customer's business opportunities," said Samih Elhage, president, Carrier VoIP and Application Solutions, Nortel. "Nortel's innovative Adaptive Application Engine software illustrates our continued drive to help service providers simplify their networks and improve the communication experience for businesses and consumers. Our focus on delivering revenue-generating, cost effective applications coupled with our leadership in Carrier VoIP continues to make Nortel a strong competitor in the carrier VoIP space."

Nortel's Adaptive Application Engine is innovative application software that helps carriers drive new revenue by delivering IP voice and multimedia services with Web 2.0 - a combination known as next-generation network (NGN) 2.0 - without costly and complex network upgrades. This approach allows service providers to integrate communications-enabled applications into social networking sites like Facebook. For example, users can add a "click-to-call-me" link from their Facebook page which will connect their friends to any wireline or wireless device to complete the call. With this capability carriers can extend their VoIP service to the web, selling their services via web portals to enhance their brand image with web 2.0. For end users, this allows them to easily add communications to their online social activities.

Nortel's Adaptive Application Engine has been built on a common SIP software engine designed for both carrier and government customers. In addition to the voice and multimedia services for consumer and business, it includes a new version of the Personal Communicator Multimedia PC client to enable advanced VoIP capabilities such as Federated IM. This application allows users to send messages to anyone, regardless of their IM provider enabling the consumer to extend the reach of their IM community. The Personal Communicator also enables subscriber mobility, allowing users to work from any location. For example, employees can work from home during inclement weather to avoid driving into the office. These capabilities tie the subscriber to the operator's network helping to reduce churn and attract and retain subscribers.

Nortel's Adaptive Application Engine introduces a hardware freedom deployment model specially designed to give carriers a choice from more than 600 Red Hat(2) Enterprise Linux compliant servers from which to run the software. This allows carriers to select the hardware that best suits their needs and budget helping them to lower operational and capital costs. Based on Nortel modeling, by selecting a server that provides three times the subscriber density results in a 60% hardware cost improvement per subscriber.

The Adaptive Application Engine also offers SIP PBX trunking for third party IP PBXs. This simplifies the carrier's access infrastructure, since only one IP pipe connects to enterprise voice and data - and therefore reduces an SMB's operational costs.

The Adaptive Application Engine software is uniquely positioned to serve both business and residential customers as a SIP Application Server and as an IMS application server, and is expected to offer these advanced capabilities on the Communication Server (CS) 2000 in the summer of 2009. The next release also includes over 40 key regulatory and business features such as unified communications features and Public Switched Telephone Network (PSTN) to SIP service transparency. These capabilities allow the operator to enhance their VoIP service by offering a second line with advanced features with full transparency to the existing landline service. The Nortel Adaptive Application Engine software allows more than 320 carrier customers who have already deployed Nortel's CS 2000 or Application Server (AS) 5200 the ability to build on their existing investment by adding new NGN 2.0 software capabilities while also supporting a significant increase in capacity.

Check out this YouTube video(2) or get more information about our Adaptive Application Engine software at our microsite.

According to Dell'Oro Group, Nortel is the worldwide leader in carrier VoIP with and has maintained that position since 2002. Nortel has shipped more than 100 million carrier IP voice and multimedia ports to over 320 carriers globally as well as 8 million SIP lines deployed globally. Nortel has several large scale deployments over one million lines and has deployed SIP over multiple IP access types including wireline, cable and 4G wireless.

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.

(2)This is a 3rd party link as described in our Web linking practices.

Red Hat is a registered trademark of Red Hat, Inc. in the U.S and other countries. Used under license.

     Contacts:
     Nortel
     Miranda MacDonald
     (905) 863-1098
     Email: mirandam@nortel.com
     Website: http://www.nortel.com