Nortel Teams up With TELUS to Develop New Multimedia Infrastructure

Vancouver, Canada (ots/PRNewswire) - Nortel(x) (NYSE: NT, TSX: NT)
is working with TELUS, a leading Canadian telecommunications
company, to integrate advanced multimedia and communications
products from across the industry into TELUS' IP services as they
emerge.

"TELUS is working closely with Nortel to create a unique
communications and entertainment experience for our customers that
we call the Future Friendly Home," said Ibrahim Gedeon, chief
technology officer, TELUS. "We are building an innovative platform
that will provide us differentiated services today and as we move
into the future with a converged multimedia-centric infrastructure."

"We are working with TELUS to create an open, standards-based IPTV
network that uses best-in-class products from across the industry,"
added Dietmar Wendt, president, Global Services, Nortel. "Our
relationship is strong evidence of how Nortel's world-class
technology and systems integration expertise can help service
providers successfully design and deploy end-to-end video
solutions."

The integration of IP-based multimedia technologies into the TELUS
network is important to provide investment protection over the long
term. Nortel brings a wealth of SIP-based solutions to the table
that is targeted for voice and video convergence as part of this new
initiative.

"It was important to find a partner like Nortel who could provide
an evolution path to a converged services environment that
incorporates IPTV as one of many applications," said Gedeon. "To
facilitate the rapid adoption of additional third party applications
as they emerge, it is imperative that the environment be open and
standards-based."

The TELUS IPTV deployment is the latest investment in an ongoing
and significant program that has seen the company invest more than
C$1 billion in wireline broadband infrastructure since launching its
high speed internet service in 1997.

Nortel is showcasing a live IPTV demonstration at this week's
Broadband World Forum in Vancouver, where TELUS is the official host
sponsor. Nortel brings to market a comprehensive IPTV solution that
is pre-integrated and pre-tested to help ensure deployments of IPTV
are reliable, scaleable and secure. Nortel's Global Services for
IPTV can accelerate IPTV time-to-revenue by providing a single
point-of-contact across all vendors, and a proven methodology that
can guide customers from inception to solution, including the entire
lifecycle of design, integration, and deployment.

About Nortel

Nortel is a recognized leader in delivering communications
capabilities that enhance the human experience, ignite and power
global commerce, and secure and protect the world's most critical
information. Our next-generation technologies, for both service
providers and enterprises, span access and core networks, support
multimedia and business-critical applications, and help eliminate
today's barriers to efficiency, speed and performance by simplifying
networks and connecting people with information. Nortel does
business in more than 150 countries. For more information, visit
Nortel on the Web at www.nortel.com. For the latest Nortel news,
visit www.nortel.com/news.

About TELUS

TELUS (TSX: T, T.A; NYSE: TU) is a leading national
telecommunications company in Canada, with $8.4 billion of annual
revenue and 10.4 million customer connections including 4.7 million
wireless subscribers, 4.6 million wireline network access lines and
1.05 million Internet subscribers. The company's strategic intent is
to unleash the power of the Internet to deliver the best solutions
to Canadians at home, in the workplace and on the move. TELUS
provides customers with a wide range of wireline and wireless
communications products and services including data, Internet
protocol (IP), voice, entertainment and video services. For more
information about TELUS, please visit telus.com.

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. Further, actual results or events could differ materially
from those contemplated in forward- looking statements as a result of
the following (i) risks and uncertainties relating to Nortel's
restatements and related matters including: Nortel's most recent
restatement and two previous restatements of its financial
statements and related events; the negative impact on Nortel and NNL
of their most recent restatement and delay in filing their financial
statements and related periodic reports; legal judgments, fines,
penalties or settlements, or any substantial regulatory fines or
other penalties or sanctions, related to the ongoing regulatory and
criminal investigations of Nortel in the U.S. and Canada; any
significant pending civil litigation actions not encompassed by
Nortel's proposed class action settlement; any substantial cash
payment and/or significant dilution of Nortel's existing equity
positions resulting from the finalization and approval of its
proposed class action settlement, or if such proposed class action
settlement is not finalized, any larger settlements or awards of
damages in respect of such class actions; any unsuccessful
remediation of Nortel's material weaknesses in internal control over
financial reporting resulting in an inability to report Nortel's
results of operations and financial condition accurately and in a
timely manner; the time required to implement Nortel's remedial
measures; Nortel's inability to access, in its current form, its
shelf registration filed with the United States Securities and
Exchange Commission (SEC), and Nortel's below investment grade
credit rating and any further adverse effect on its credit rating
due to Nortel's restatements of its financial statements; any adverse
affect on Nortel's business and market price of its publicly traded
securities arising from continuing negative publicity related to
Nortel's restatements; Nortel's potential inability to attract or
retain the personnel necessary to achieve its business objectives;
any breach by Nortel of the continued listing requirements of the
NYSE or TSX causing the NYSE and/or the TSX to commence suspension
or delisting procedures; (ii) risks and uncertainties relating to
Nortel's business including: yearly and quarterly fluctuations of
Nortel's operating results; reduced demand and pricing pressures for
its products due to global economic conditions, significant
competition, competitive pricing practice, cautious capital spending
by customers, increased industry consolidation, rapidly changing
technologies, evolving industry standards, frequent new product
introductions and short product life cycles, and other trends and
industry characteristics affecting the telecommunications industry;
the sufficiency of recently announced restructuring actions,
including the potential for higher actual costs to be incurred in
connection with these restructuring actions compared to the
estimated costs of such actions and the ability to achieve the
targeted cost savings and reductions of Nortel's unfunded pension
liability deficit; any material and adverse affects on Nortel's
performance if its expectations regarding market demand for
particular products prove to be wrong or because of certain barriers
in its efforts to expand internationally; any reduction in Nortel's
operating results and any related volatility in the market price of
its publicly traded securities arising from any decline in its gross
margin, or fluctuations in foreign currency exchange rates; any
negative developments associated with Nortel's supply contract and
contract manufacturing agreements including as a result of using a
sole supplier for key optical networking solutions components, and
any defects or errors in Nortel's current or planned products; any
negative impact to Nortel of its failure to achieve its business
transformation objectives; additional valuation allowances for all
or a portion of its deferred tax assets; Nortel's failure to protect
its intellectual property rights, or any adverse judgments or
settlements arising out of disputes regarding intellectual property;
changes in regulation of the Internet and/or other aspects of the
industry; Nortel's failure to successfully operate or integrate its
strategic acquisitions, or failure to consummate or succeed with its
strategic alliances; any negative effect of Nortel's failure to
evolve adequately its financial and managerial control and reporting
systems and processes, manage and grow its business, or create an
effective risk management strategy; and (iii) risks and
uncertainties relating to Nortel's liquidity, financing arrangements
and capital including: the impact of Nortel's most recent
restatement and two previous restatements of its financial
statements; any inability of Nortel to manage cash flow fluctuations
to fund working capital requirements or achieve its business
objectives in a timely manner or obtain additional sources of
funding; high levels of debt, limitations on Nortel capitalizing on
business opportunities because of credit facility covenants, or on
obtaining additional secured debt pursuant to the provisions of
indentures governing certain of Nortel's public debt issues and the
provisions of its credit facilities; any increase of restricted cash
requirements for Nortel if it is unable to secure alternative support
for obligations arising from certain normal course business
activities, or any inability of Nortel's subsidiaries to provide it
with sufficient funding; any negative effect to Nortel of the need
to make larger defined benefit plans contributions in the future or
exposure to customer credit risks or inability of customers to
fulfill payment obligations under customer financing arrangements;
any negative impact on Nortel's ability to make future acquisitions,
raise capital, issue debt and retain employees arising from stock
price volatility and further declines in the market price of Nortel's
publicly traded securities, or any future share consolidation
resulting in a lower total market capitalization or adverse effect
on the liquidity of Nortel's common shares. For additional
information with respect to certain of these and other factors, see
Nortel's Annual Report on Form 10-K/A, Quarterly Report 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.

(x) Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks. Use of the terms "partner" and "partnership" does
not imply a legal partnership between Nortel and any other party.

ots Originaltext: Nortel Networks
Im Internet recherchierbar: http://www.presseportal.de

Contact:
For further information: Bo Gowan, +972-685-8278, bogowan@nortel.com/