Nortel IPTV Advancements Power Convergence of Entertainment, Communications

Nortel IPTV Advancements Power Convergence of Entertainment, Communications

LAS VEGAS, Nevada, March 21/PRNewswire/ --

- IMS Integration and SIP-based Services Enable Anywhere, Anytime Content
and Features

Nortel(x) (NYSE: NT ; TSX: NT) is using its industry leadership in
SIP-based services and its breadth of solutions across IMS, broadband and
VoIP to develop new IPTV services and functionality that can dramatically
change the way people use their TVs for both entertainment and
communications.

"IPTV is more than simply delivering television services over an IP
network," said Walt Megura, general manager, Broadband Networks, Nortel. "The
real power of IPTV is in the merging of entertainment and communications, the
integration of telephone features into your television experience, and the
mobility of video services that follow the user anywhere, anytime."

At its IPTV lab in Ottawa, Nortel is demonstrating the delivery of IPTV
services over Nortel's IMS infrastructure, the first step for enabling telcos
to create personalized IPTV services across wireline and wireless networks
that helps to provide long-term differentiation from competitive offerings.
Demonstrated services include mobile-to-TV picture sharing, on-screen instant
messaging and presence, and click-to-call functionality.

"IPTV is a key investment area for Nortel, and the integration of IPTV
services within an IMS infrastructure is a fundamental part of our IPTV
strategy," said Megura. "We are also concentrating our efforts on enabling
new IPTV services that take full advantage of our industry-leading SIP
capabilities."

At the TelecomNEXT conference in Las Vegas from March 19-23, Nortel is
demonstrating some of these advanced SIP-based services that can be offered
by service providers as part of a Nortel-enabled IPTV services bundle. Nortel
will also be showcasing integrated voice and text communications capabilities
built using a new jointly developed Application Interface (API) that enables
the integration of real-time IPTV services with Minerva's iTVManager
software. Nortel is using this jointly developed interface as a first step to
bring together Minerva's IPTV middleware platform with Nortel's IMS solution
to make content available to users anywhere, anytime, on any device.

"Nortel is attacking the IPTV market with focus and determination," said
Megura. "A key part of that focus is in working with our IPTV ecosystem
vendors like Minerva to create new services that can be an integral part of
in IPTV bundle."

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",
"plans", "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. Although Nortel
believes expectations reflected in such forward-looking statements are
reasonable based upon the assumptions in this press release, they may prove
to be inaccurate and consequently Nortel's actual results could differ
materially from its expectations set out in this press release. 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 recently announced restatement and two previous
restatements of its financial statements and related events and that the
previously filed financial statements of Nortel and NNL and related audit
reports should not be relied upon; the negative impact on Nortel and NNL of
their announced restatement and delay in filing their financial statements
and related periodic reports causing them to breach their public debt
indentures and obligations under their credit facilities with the possibility
that the holders of their public debt or NNL's lenders would seek to
accelerate the maturity of that debt; and causing a breach of NNL's support
facility with EDC with the possibility that EDC would refuse to issue
additional support under the facility, terminate its commitments under the
facility or require NNL to cash collateralize all existing support; 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 finalization and
approval of its proposed class action settlement, or if such proposed class
action settlement is not finalized, any larger settlements or awards of
damages in respect of such class actions; 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
restatement 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; any default in Nortel's filing
obligations extending beyond May 9, 2006, causing any Canadian securities
regulatory authority to impose an order to cease all trading in Nortel's
securities within the applicable jurisdiction or to impose such an order
sooner if Nortel fails to comply with the alternate information guidelines of
such regulatory authorities; (ii) risks and uncertainties relating to
Nortel's business including: yearly and quarterly fluctuations of Nortel's
operating results; reduced demand and pricing pressures for its products due
to global economic conditions, significant competition, competitive pricing
practice, cautious capital spending by customers, increased industry
consolidation, rapidly changing technologies, evolving industry standards,
frequent new product introductions and short product life cycles, and other
trends and industry characteristics affecting the telecommunications
industry; any material and adverse affects on Nortel's performance if its
expectations regarding market demand for particular products prove to be
wrong or because of certain barriers in its efforts to expand
internationally; any reduction in Nortel's operating results and any related
volatility in its market price of its publicly traded securities arising from
any decline in its gross margin, or fluctuations in foreign currency exchange
rates; any negative developments associated with Nortel's supply contract and
contract manufacturing agreements including as a result of using a sole
supplier for key optical networking solutions components, and any defects or
errors in Nortel's current or planned products; any negative impact to Nortel
of its failure to achieve its business transformation objectives;
restrictions on how Nortel and its president and chief executive officer
conduct its business arising from a settlement with Motorola Inc.; additional
valuation allowances for all or a portion of its deferred tax assets;
Nortel's failure to protect its intellectual property rights, or any adverse
judgments or settlements arising out of disputes regarding intellectual
property; changes in regulation of the Internet and/or other aspects of the
industry; Nortel's failure to successfully operate or integrate its strategic
acquisitions, or failure to consummate or succeed with its strategic
alliances; any negative affect of Nortel's failure to evolve adequately its
financial and managerial control and reporting systems and processes, manage
and grow its business, or create an effective risk management strategy; and
(iii) risks and uncertainties relating to Nortel's liquidity, financing
arrangements and capital including: the impact of Nortel's recently announced
restatement and two previous restatements of its financial statements; any
acceleration under their public debt indentures and credit facilities, which
may result in Nortel and NNL being unable to meet their respective payment
obligations; any inability of Nortel to manage cash flow fluctuations to fund
working capital requirements or achieve its business objectives in a timely
manner or obtain additional sources of funding; high levels of debt,
limitations on Nortel capitalizing on business opportunities because of
credit facility covenants, or on obtaining additional secured debt pursuant
to the provisions of indentures governing certain of Nortel's public debt
issues and the provisions of its credit facilities; any increase of
restricted cash requirements for Nortel if it is unable to secure alternative
support for obligations arising from certain normal course business
activities, or any inability of Nortel's subsidiaries to provide it with
sufficient funding; any negative affect to Nortel of the need to make larger
defined benefit plans contributions in the future or exposure to customer
credit risks or inability of customers to fulfill payment obligations under
customer financing arrangements; any negative impact on Nortel's ability to
make future acquisitions, raise capital, issue debt and retain employees
arising from stock price volatility and further declines in Nortel's market
price of its publicly traded securities, or any future share consolidation
resulting in a lower total market capitalization or adverse affect on the
liquidity of Nortel's common shares. For additional information with respect
to certain of these and other factors, see Nortel's 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.

(x)Nortel, the Nortel logo and the Globemark are trademarks of Nortel
Networks.

Source: Nortel

For further information: Bo Gowan, +1-972-685-8278, bogowan@nortel.com; Greta Brown, +44-1628-432968, gretab@nortel.com

-------
Profile: intent