Nortel Carrier VoIP Technology Enhances Bermuda Telephone Company Voice Services

Network Enhancements Will Allow Customers to Stay Connected With Better Communications Services

SUNRISE, FLORIDA–(EMWNews – July 15, 2008) – Nortel(1) (TSX:NT)(NYSE:NT) is helping subscribers of the Bermuda Telephone Company (BTC) stay connected regardless of their location with more efficient voice, data and multimedia services. Through the implementation of Nortel carrier VoIP technology, BTC subscribers can use their Bermuda number outside the island to stay connected wherever they are, accessing a suite of advanced IP services like personal call routing and inexpensive long distance calls.

With Nortel’s Communication Server (CS) 2000, an IP multimedia softswitch, subscribers to the BTC network will also be able to use fixed mobile convergence capabilities such as the ability to have calls rerouted from their wireless service to their voicemail or home phone.

“This new voice solution will allow our customers to coordinate communications among mobile and fixed devices. Having the same set of services on any device makes it easy for our customers to be more productive and collaborate more effectively through personalized multimedia communications,” said Francis Massenden, chief executive officer, Bermuda Telephone Company.

“BTC chose Nortel for its expertise and proven track record in delivering one of the industry’s best VoIP network foundations” said Ray Bulengo, vice president, Carrier Sales, Caribbean Region and Bermuda, Nortel. “Nortel’s technology will allow BTC to take full advantage of the benefits of IP-based communications such as more cost-effective and efficient communications for their subscribers. With these new services, BTC can now offer fixed mobile convergence to Bermuda and the Cayman Islands, reducing the high costs of long distance telephone calls for its customers.”

Nortel’s CS 2000 will allow BTC to meet the demand for immediate client needs, as well as help to pursue and attract future customers by delivering complete packages of residential and business communications services that vary from traditional voice services to advanced multimedia communications such as video calling, presence and collaboration.

Nortel’s CS 2000 delivers IP voice services and supports a wide range of voice and multimedia features based on the open, industry-standard SIP protocol. This technology supports existing residential and business features and will evolve to deliver advanced communications services to drive BTC’s business objectives and to improve overall customer satisfaction. This product simplifies life for business executives – especially for organizations without extensive IT resources – by making new applications and services readily available without having to deal with integration, support, or device and domain compatibility.

Nortel’s complete IP solution supports the explosion in demand for new communication services being driven by Hyperconnectivity, a global trend where anything that can be connected to the network, will be connected. To address this demand for services and the rapid growth of enterprise and residential subscribers, carriers are using Nortel’s VoIP and multimedia service solutions to deploy new communications technologies that converge voice, video and data services onto one network to improve quality of service while reducing costs.

Nortel is the worldwide leader in carrier VoIP and has maintained that position for the last six years (2002-2007), according to Dell’Oro Group. Nortel has shipped 88 million carrier IP voice and multimedia ports to over 250 carriers globally and Nortel’s IMS-ready solutions have been adopted by over 150 customers, including carriers operating across wireline, wireless and cable domains.

About BTC

Launched in 1887, The Bermuda Telephone Company Limited, (BTC) has been a reliable presence on the island for over one hundred and twenty years. It provides local voice and data services as well as access to international carriers, both residential and business customers. Its dependability, history and on-going dedication to excel as a world-class telecommunications provider makes BTC an anchor in the local community. It is a member of the KeyTech group of companies.

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 www.nortel.com/news.

Certain statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “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 from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other 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.

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