Nortel Accelerates Enterprise Strategy with Dell


DELL TO DELIVER COMPLETE UNIFIED COMMUNICATIONS SOLUTION LEVERAGING NORTEL'S ENTERPRISE AND SERVICES PORTFOLIOS

OCTOBER 16, 2007

TORONTO - Further accelerating its go-to-market strategy, Nortel* [NYSE/TSX: NT] is expanding its relationship with Dell through an agreement that will allow Dell to offer its customers in the U.S. and Canada all of Nortel's Enterprise products - including those developed under the Nortel and Microsoft Innovative Communications Alliance - as well as a suite of Nortel services related to unified communications.

"Two world-class companies are combining their collective strengths to both speed up and make it simple for business customers of all sizes to enjoy the benefits of unified communications," said Joel Hackney, president, Nortel Enterprise Solutions. "Communications and business processes no longer have to be separated. This Nortel-Dell alliance accelerates the transition to a business environment in which they are fully aligned."

Highlights of Nortel's agreement with Dell are:
o Dell will become a key sales channel for Nortel, gaining access to Nortel's entire Enterprise Solutions portfolios - including voice, data, wireless and optical products as well as those developed under the Nortel and Microsoft Innovative Communications Alliance for unified communications.

o Dell will provide a suite of professional services to support unified communications and will leverage the Nortel Express Services portfolio, which assists customers in their efforts to reduce the risks associated with migrating to VoIP and unified communications. Such assistance may include pre-packaged implementation, support and management services. The services provide direct access to Nortel's technical expertise.

This announcement complements a news release today from Dell in which it launched a series of new products and partnerships related to unified communications, and that it has become the first Tier One vendor to offer all of the necessary components - desktop to datacenter computer systems, software, telephony and services expertise - to implement a unified communications environment.

The Nortel-Dell alliance combines Dell's expertise in designing and deploying solutions for PCs, servers, and storage with Nortel's world class VoIP, data networking and multimedia-conferencing solutions.

"At Dell, we are aggressively extending our worldwide Microsoft Consulting Practice with industry-leading messaging, communications and unified communications expertise. In addition, through our relationship with Nortel, we are making it easy for customers to enable a mobile workforce by delivering comprehensive customer-driven unified communications solutions," said Stephen Murdoch, vice president of Global Infrastructure Consulting Services, Dell. "We are building on our ability to deliver simplified IT solutions and helping customers remove cost and complexity with a fully integrated solution."

Commenting on the services component of the relationship, Dietmar Wendt, president, Nortel Global Services, said, "With Nortel Express Services, Dell customers gain access to best-in-class network-services and technical-support personnel. And these pre-packaged implementation, support and management services are designed specifically to help Dell customers rapidly enter and succeed in implementing unified communications with less risk and upfront investment."

In a separate announcement today, Nortel also unveiled plans to be first-to-market with the industry's broadest portfolio of unified communications solutions and applications built around Microsoft's new Office Communications Server 2007 and Office Communicator 2007.

For more information on the products and services available through the Nortel-Dell agreement, please visit nortel.com/dell.

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 nortel.com/news.

Contacts for Press and Analysts:
Richard Bloom
(905) 863-7156
Richard.Bloom@nortel.com

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