Open University of Israel Selects Converged IP Telephony Solutions from Nortel Networks (email this article)

AIRPORT CITY, Israel--(BUSINESS WIRE)--Aug. 4, 2004-- Students and faculty at The Open University of Israel, the largest university in Israel, are expected to benefit from a comprehensive suite of advanced voice and data communications services to be made available using an IP (Internet Protocol) network solution from Nortel Networks (Company Profile, Past Stories, Case Studies)(NYSE:NT - News; TSX:NT - News).

Under an agreement announced today, Nortel Networks will provide IP solutions to help The University migrate seamlessly to a converged IP telephony network offering mobility, flexibility, unified messaging, 'soft key' information retrieval and other services.

Nortel Networks 'channel partners' Bynet, an end-to-end services and solutions provider, and Netcom, a leading datacom system house in Israel, will deploy the network over The University's existing infrastructure to connect all four remote sites with the main university campus in the city of Ra'anana.

"The Open University of Israel is the biggest university in Israel, with more than 38,000 students throughout the country. We integrate various technologies for teaching in order to improve remote access and to improve the communication between students and faculty and amongst the students themselves, as well as to enhance the quality of education. Every technological solution that optimizes the communication, the teaching and the service to students and employees is highly appreciated," said Giora Olman, chief executive officer, The Open University of Israel.

"The solution being provided by Nortel Networks will offer The University control over the pace and nature in which the communications system is developed within the organization," said Sorin Lupu, president, Israel, Poland and Southeast Europe Region, Nortel Networks. "Nortel Networks is providing The University with a gradual upgrade from legacy telephony to IP telephony while maintaining all the existing capabilities of the Nortel Networks systems currently operating in the organization."

"The Open University of Israel is one of the first organizations in Israel to implement these advanced communications solutions that will help to better support research, remote education and highly reliable and available communications with students and academic personnel," Lupu said.

Nortel Networks IP solution will deliver a strong base for The University's real-time applications, including IP telephony, multicast-based applications and video-on-demand over one highly efficient, converged network. The IP solution provided by Nortel Networks will also enable future wireless IP telephony services.

The Open University of Israel will deploy Nortel Networks Succession Communication Server 1000 for a converged network environment and Nortel Networks CallPilot Unified Messaging solution for 'one stop' management of personal communications including voice mail, e-mail and fax. In addition, The University's data network will be upgraded based on Nortel Networks Passport 8600 Routing Switch and Nortel Networks BayStack Ethernet switches, as well as Nortel Networks Alteon Switched Firewall System for enhanced network protection and Alteon Application Switch 2424 to improve speed and efficiency.

The Open University of Israel is a unique institution for higher education based on remote education by means of various technologies, enabling learning from any area and from every home throughout the country. Consequently, the technological infrastructures in general, and the computerization and communication infrastructure in particular, are vital elements for The University in which a substantial amount of resources are invested. The new local network in the city of Ra'anana will become the central crossing point between these infrastructures, through which the teaching and administrative services will be provided.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.

Factors which could cause results or events to differ from current expectations include, among other things: the outcome of Nortel Networks independent review and planned restatement of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal control; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks customers and t he impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of Nortel Networks purchase contracts; the impact of Nortel Networks supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.

For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Nortel Networks, the Nortel Networks logo, the Globemark, Business Without Boundaries, Succession, BayStack, Passport and CallPilot are trademarks of Nortel Networks.

Use of the terms "partner" and "partnership" does not imply a legal partnership relationship between Nortel Networks and any other party.