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December 9, 2002

Nortel Networks Introduces Converged Solutions for Small Enterprises, Branch Offices

BCM Release 3.0 Includes IVR, IPSec Client Support, Increased TDM Station Capacity

ATLANTA – Nortel Networks* [NYSE/TSX: NT] introduced Business Communications Manager (BCM) Release 3.0, which adds interactive voice response (IVR), IPSec client support, increased TDM station capacity and other enhancements designed to help drive increased revenues while reducing costs for small- to medium-sized businesses and branch offices.

House of Blues Concerts Canada (www.hob.com/venues/searchresults/canada.asp**) recently upgraded to BCM Release 3.0 for added flexibility and robust capabilities. The company supports 35 users on a BCM, and plans to install and connect BCM’s across all its locations to create a seamless voice network with 4-digit dialing.

“I didn’t realize the scope of Nortel Networks BCM voice over IP capabilities until I started working with the system,” said Howie Gold, manager of information systems and technology, House of Blues Concerts Canada. “Our Vancouver booking agents can use their IP telephones and our IP network to connect to our Toronto office with a local Toronto number, making us easier to do business with and increasing our venue bookings to drive increased revenue.”

“BCM has already allowed us to reduce our long distance costs from as much as (Cdn)$2,000 a month to as little as (Cdn)$200 a month, and to realize a full return on our investment in less than a year,” Gold said. “And now that we’ve upgraded to Release 3.0, we foresee additional savings.”

BCM is the only converged voice and data solution that gives small- to medium-sized businesses and branch offices a choice of either an IP (Internet Protocol)-enabled or pure-IP strategy. This applications-rich platform integrates KSU/PBX, voice over IP gateway and Quality of Service (QoS) data routing capabilities in a single, cost-effective solution. BCM Release 3.0 introduces significant enhancements to the platform’s functionality including:
  • IVR, a self-service application designed to allow businesses to be accessible to their customers 24 hours a day, 365 days a year. Businesses can supply callers with access to a broad range of information simply by responding to a series of prompts via their touchtone phones.
  • IPSec Client Termination, providing the ability for Nortel Networks Contivity* Virtual Private Network (VPN) Client to connect to BCM from a remote PC, providing up to 128-bit encrypted secure access to a private network from the remote PC.
  • Increased TDM Station Capacity, which allows for an increased number of digital sets through a more efficient use of existing resources. With a mixture of trunks and stations, 128 to 160 digital sets can be supported, effectively doubling the digital station capacity of the BCM.
  • Network Configuration Manager 2.0, a multi-site management feature that provides centralized configuration and system management capabilities for a number of BCMs in a network, allowing multi-site BCM customers to significantly reduce total cost of ownership.
  • Hardware Platform Improvements, including BCM 400 and BCM 200. BCM 400 features four media bays, enabling larger configurations to be supported at a lower cost to the end user. BCM 200, a new, smaller base platform with two media bays, is designed for the smaller site with less than 32 stations.

“BCM Release 3.0 raises the bar as the standard for IP telephony solutions delivering powerful features to small- to medium-sized businesses and branch offices needing a converged voice and data solution as well as advanced applications,” said Nick Pegley, vice president and general manager, Enterprise IP Services, Nortel Networks. “BCM drives network efficiencies, lower training and personnel costs, and remote management through a single interface, while providing real investment protection.”

Other features of BCM Release 3.0 include advanced telephony routing; enhanced Call Detail Recording (CDR) with pull functionality, allowing the customer to automatically retrieve CDR records; silent monitor for call centers and hunt groups, providing supervisors with the ability to silently monitor incoming calls; an administrative edition of Desktop Assistant Pro that allows a system administrator to configure any set on the system remotely; and a client diagnostic tool for the i2050 SoftPhone.

BCM Release 3.0 is available now in North America, the Caribbean and Latin America. It is expected to be available in Europe, the Middle East, Africa and the Asia-Pacific region in the first quarter of 2003.

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.

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 severity and duration of the industry adjustment; the sufficiency of our 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; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or 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; 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; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports 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 and Contivity are trademarks of Nortel Networks.

**This is a 3rd party link as described in our Web linking practices.

Contact for Press and Analysts:

Dana Hughens
Nortel Networks
615-432-4636
dhughens@nortel.com

Giorgia Casnedi
Nortel Networks
01628 43 31117
casnedi@nortel.com

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