Local Government Authorities Select BT, Nortel Networks to Deliver Converged Networks (email this article)

LONDON--(BUSINESS WIRE)--Sept. 15, 2004-- BT has been awarded three separate contracts to provide converged Internet Protocol (IP) telephony solutions from Nortel Networks (Company Profile, Past Stories, Case Studies) (NYSE:NT - News; TSX:NT - News) for South Cambridgeshire District Council, City of Lincoln Council and Brentwood Borough Council. These awards demonstrate the continued commitment of BT and Nortel Networks to providing innovative, practical convergence solutions that help organisations transform the delivery of public sector services and make it easier for citizens to connect with them.

"Local government authorities are now facing various challenges such as instituting flexible working practices, improving internal communications, knowledge sharing, managing procurement more efficiently to get better value for citizens, and transforming customer service," said John Anderson, director, BT Government. "These contract wins are just a small illustration of our success in understanding and responding to these needs."

"We consider the government and public sector to be one of the most vital markets in the UK for deploying Nortel Networks converged network solutions," said Peter Kelly, president, Enterprise Networks, EMEA (Europe, Middle East, Africa), Nortel Networks. "Through BT, our innovative, practical enterprise networks solutions help transform the delivery of public sector services, making it easier for citizens to access them."

South Cambridgeshire District Council has chosen to implement a completely converged IP telephony solution as part of its relocation to new premises. This solution will include Nortel Networks Communication Server 1000 IP telephony system, 450 IP phones (including 50 IP Softphones 2050), and a converged local area network (LAN) infrastructure based on Nortel Networks Passport 8600 and Nortel Networks BayStack 460.

Preferring an evolutionary rather than revolutionary approach, South Cambridgeshire District Council based its converged network on an existing Nortel Networks Meridian 1 PBX. The Council was looking for high reliability and competitive features for its network, combined with flexible and cost effective services for its citizens. eGovernment capabilities and more productive utilisation of staff were crucial to the Council's decision. South Cambridgeshire District Council serves a rural area set in 350 square miles of countryside around Cambridge, with a population of over 130,000.

As part of its ongoing eGovernment strategy, the City of Lincoln Council chose a complete voice/data converged network. This will include a Nortel Networks Communication Server 1000 IP telephony system; 500 IP phones; a LAN based on Passport and BayStack; Nortel Networks Symposium Contact Centre Server; Nortel Networks CallPilot unified messaging; and Nortel Networks Integrated Call Director for 'find me/follow me' service, which BT will integrate with voice recording, call logging and operator modules from Datapulse. The Council is aiming to deliver e-services to its citizens as a priority to meet government targets, and looking for improved citizen engagement of its 84,000 people through the implementation of the Symposium Contact Centre Server.

Brentwood Borough Council plans to use its new network to help meet eGovernment objectives and to service its citizens better. BT will integrate the council's existing voice and data networks, bringing Brentwood BC a totally converged data network that will be easier to manage and will ultimately result in better council services for the local community.

Nortel Networks technology for this network will include a Nortel Networks Communication Server 1000 IP telephony system; 400 IP phones; a LAN based on Passport and BayStack; Symposium Contact Centre Server, CallPilot unified messaging, and Nortel Networks Integrated Call Director. BT will also provide long-term network support and maintenance.

BT and Nortel Networks are working together as strategic partners, convinced of the need to develop new types of relationships between telecommunications operators and equipment vendors in order to cope with the challenges of increasing competition and the convergence of the telecom, IT and multimedia industries.

BT is one of Europe's leading providers of telecommunications services. Its principal activities include local, national and international telecommunications services, higher-value broadband and Internet products and services, and IT solutions. In the UK, BT serves over 20 million business and residential customers with more than 29 million exchange lines, as well as providing network services to other licensed operators. In the year ended 31 March 2003, BT's turnover was GBP 18,727m. with profit before taxation of GBP 1,829m. For more information, visit www.bt.com.

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 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 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, particular ly 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.

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