Nortel Networks Delivers Solutions to Enable Today's Virtual Enterprise (email this article)

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 13, 2004--Delivering the means to free enterprises from the constraints of physical office locations, Nortel Networks (Company Profile, Past Stories, Case Studies) (NYSE:NT - News; TSX:NT - News) today announced new communications solutions designed to change the way business is conducted by enabling work to be truly an activity and not a destination.

Created to leverage Session Initiation Protocol (SIP), these new industry-standards compliant solutions allow even the most remote, geographically-dispersed workers to function as cohesive, integrated teams. Giving critical staff members unrestrained mobility to accomplish organizational objectives has too often been an unrealized business goal. Providing frequent travelers and remote workers with the tools, applications and network resources they require, regardless of where they are, ensures greater success through increased collaboration, access to real-time information, and shortened decision cycles.

"Our latest research shows that nearly 90 percent of midsize and large companies employ remote workers, and this presents a huge challenge to the IT and networking staffs," says Robin Gareiss, principal research officer for Nemertes Research. "It's crucial for companies to enable their workers to access timely data and applications regardless of where they reside at any given time. If they don't adopt a virtual enterprise model with cost-effective, intuitive products and services, they'll wind up severely restricting their competitiveness in the marketplace."

Leading enterprises embracing the rapid emergence of the Virtual Enterprise with Nortel Networks solutions include BASF, the City of Seattle, Erlanger Health System, the Federal Express Institute at the University of Memphis, Greater Manchester Police, Monster Worldwide Technologies, Nomura International Plc., and Texas A&M University .

Enterprises with global operations are increasingly realizing the benefits of the Virtual Enterprise. To accommodate the large number of teleworkers and office staff and ensure they can work seamlessly together, BASF is deploying Nortel Networks virtual enterprise solutions based on the Multimedia Communications Server (MCS) 5100. Using the collaborative capabilities of MCS 5100, BASF plans to provide consistent, reliable and secure communications among geographically-distributed employees regardless of location.

"CB Richard Ellis previously deployed a convergence solution from Nortel Networks," said Robin Hoyle, chief technology officer for CB Richard Ellis in Europe, Middle East and Africa (EMEA). "We are now assessing the communication needs of our dispersed workforce for extended collaboration across all regions. We are excited about the potential that SIP (Session Initiation Protocol)-based applications could provide to enhance employee productivity and the flexibility to use multiple devices whilst reducing costs."

"The solutions announced today enable enterprise workers to operate as a connected team - a truly Virtual Enterprise, collaborating in real-time with their colleagues, regardless of where they are," said Malcolm Collins, president, Enterprise Networks, Nortel Networks. "Today's announcement builds on the evolutionary steps we've taken over the last two years to deliver reliable access to voice, video and multimedia applications, regardless of how, when and where the network is accessed. Of equal importance is the potential for enterprises to drive operational costs lower, increase productivity and draw closer to their customers."

As an example, Nortel Networks is delivering a suite of office tools accessible via the end-user's computer, regardless of whether it is a desktop, laptop, tablet PC or handheld PC. Using user-friendly icons, a person can immediately contact a colleague to share information and access applications via the most effective means. This could enable a nurse providing patient care to contact a doctor immediately for a needed prognosis without having to waste valuable time calling office, mobile and home telephone numbers. With Nortel Networks solution, the nurse could quickly share pertinent medical information, prescriptions and X-rays with the doctor, ultimately providing better patient care.

To help enterprises realize the benefits of a fully-integrated, globally-dispersed work force, Nortel Networks today introduced the following new product capabilities:

Nortel Networks Communications Server 1000, Release 4.0: This new call server software will tightly integrate Communication Server 1000 business grade telephony with MCS 5100 SIP-based multimedia applications to seamlessly deliver highly-reliable and feature-rich voice, data and video services to users anywhere, anytime, driving increased mobility, collaboration and productivity. The software features increase deployment flexibility with enhancements to scalability and operational resiliency, including redundancy, geographic distribution and mirroring of call servers. Nortel Networks Multimedia Communications Server 5100 Release 3.0: MCS 5100 delivers voice, call management, desktop video calling, collaboration tools and personalization services to a distributed workforce. Release 3.0 offers enhanced video capabilities with multi-point video conferencing, new Instant Messaging capabilities, and Web application collaboration that allows applications and documents to be shared in real time.

Nortel Networks Communication Server 2100: Designed for very large enterprises that require carrier-class reliability, CS 2100 will enable geographic dispersal of call servers to match customer requirements and business cases. It will provide enhanced support for the SIP protocol and new wireless IP telephones. Based on industry standards, it can accommodate third-party applications and gateways.

Nortel Networks Symposium Call Center Server Release 5.0: This new release enhances network skill-based routing to provide more flexibility for enterprises when creating a virtual contact center. A virtual contact center offers companies exceptional versatility because employees function as a single, unified contact center regardless of location assuring customer calls are delivered to the right expert promptly. Future contact center upgrades will provide multimedia capabilities using SIP-enabled devices, providing wired and wireless, video, chat and Instant Messaging capabilities to increase customer collaboration.

Nortel Networks Alteon Operating System 22.0: This latest release will include SIP load balancing, which delivering critical applications seamlessly and with greater reliability via the Intelligent Traffic Management suite that maximizes network throughput to ensure critical information is given priority. Data center virtualization features provide greater resource sharing capabilities and enhanced security.

Nortel Networks BayStack 5520 Ethernet Switches: The first stackable Gigabit switches to provide Power-over-Ethernet, BayStack 5520 switches will enable customers to upgrade their desktop user infrastructure just once, providing both Gigabit connectivity and power to products such as IP telephones and WLAN access points while enabling campus mobility, in which workers can simply plug into Ethernet ports for their communications requirements.

Nortel Networks IP Telephones, Models 2006 and 2007: With a full-color display and the rich feature/functionality set of Nortel Networks IP Telephone portfolio, the IP Phone 2007 will offer Bluetooth compatibility and USB peripheral support. The IP Phone 2006 will offer an improved display at an attractive price point.

Nortel Networks leadership position in delivering SIP continues. Tens of thousands of SIP clients from Nortel Networks have been deployed by such industry leaders as SBC, Verizon, SaskTel, China Railcom, China Netcom, Bell Canada and BT. With more than 50 million Ethernet ports and 50 million voice lines sold to enterprises, Nortel Networks is uniquely positioned to help enterprises increase their effectiveness by transitioning to IP telephony. Nine out of 10 Fortune 500 companies rely on Nortel Networks every business day.

As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com.

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 or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 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 controls; 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 the 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, Symposium, Alteon and BayStack are trademarks of Nortel Networks.