Nortel Networks: Hospitals Select BT, Nortel to Deliver Converged Networks

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November 22, 2004

Hospitals Select BT, Nortel to Deliver Converged Networks

Guy’s and St. Thomas’ NHS Foundation Trust, Royal Wolverhampton Hospitals NHS Trust Opt for IP Telephony

LONDON - BT has deployed converged Internet Protocol (IP) telephony solutions from Nortel* [NYSE/TSX: NT] for Guy’s and St. Thomas’ NHS Foundation Trust and Royal Wolverhampton Hospitals NHS Trust. This demonstrates the continued commitment of BT and Nortel to provide secure, innovative, practical convergence solutions that help organizations transform the delivery of public sector services and make it easier for citizens to connect with them.

These IP telephony solutions will provide secure and reliable networks that will help both Trusts to drive reduced operating costs by converging voice and data traffic onto a single network and by simplifying network maintenance and support. The combination of voice and data onto a single network also enables a wide range of advanced new communications and networking services.

Neil Hemming, general manager, channel and market development, BT Global Services Convergent Solutions, said: “Royal Wolverhampton Hospitals NHS Trust and Guy’s & St. Thomas' NHS Foundation Trust are demonstrating a real drive and commitment to modernize the use of IT and communications in the health service. These contract wins show that we understand and can respond to the needs of NHS Trusts."

Tony Bailey, general manager, BT account enterprise business, EMEA, Nortel, said: “We consider health service to be one of the most vital markets in the UK for deploying Nortel converged network solutions. Through BT, our innovative enterprise solutions help enhance the human experience by delivering secure and reliable public sector communications and networking services.”

“Furthermore, the new Nortel voice recognition system called SpeechDial deployed as part of the overall solution speeds up the time it takes callers to get through to anybody within the Trusts, providing a better service to both patients and staff,” Bailey said.

Guy's and St. Thomas' NHS Foundation Trust is one of the largest hospital trusts in the UK with more than 750,000 patient contacts every year. The telephone system is vital to its service, but its previous phone systems had little spare capacity and limited functionality and problems were made worse by the two-mile distance between the two hospital sites.

Guy’s and St. Thomas’ NHS Foundation Trust wanted to deploy IP telephony while making best use of a QoS (Quality of Service)-capable local area network (LAN) already in place. Responsibility for critical care and emergency services makes the Trust an extremely risk averse customer. However, reference sites within the health sector for BT’s Nortel solution and an excellent relationship with BT gave the Trust the confidence to make the change.

Over a single weekend, BT engineers installed two Nortel Communication Server 1000s using a multi-group configuration, together with a single, centralised Nortel Symposium* Call Centre Server. A mix of 1,000 Nortel IP phones were also installed under a BT contract worth £1.8 million.

The Trust has minimised capital spend by using spare capacity in its existing IP network. Calls between sites, some 80 per cent of the total, are free. A new range of direct dial (DDI) numbers has cut incoming call diversions from 29,000 to only 6,000 per day. Doctors – wherever they are – can rely on unified messaging services as well as contact centre features including self service applications for incoming patient calls, delivering more efficiency.

Royal Wolverhampton Hospitals NHS Trust, located in the heart of Wolverhampton, employs 4,000 health professionals. Its two main facilities comprise the New Cross Hospital and Wolverhampton & Midland Counties Eye Infirmary. These sites are part of a substantial redevelopment programme that aims to ensure the highest level of health treatment for the region.

Royal Wolverhampton Hospitals’ existing telecommunications infrastructure was nearing the end of its natural lifespan and the Trust was aware that steps were needed to give employees and patients a solution that would improve rather than hinder the administration of healthcare. This needed to be within the context of the unique demands of a public health facility, and the desire to create a financially effective, future-proofed solution.

BT’s IP telephony solution for Royal Wolverhampton Hospitals includes Nortel Communication Server 1000, Nortel Symposium Express Call Centre, Nortel CallPilot* unified messaging system and Nortel Optivity* Telephony Manager (OTM). The capability to support IP and analogue telephony has allowed a combination of IP and digital handsets to be installed.

A single network has created significant efficiencies in the resources needed to manage voice and data communications, as well as greater overall resilience. Telephony savings are being achieved through the more cost-effective use of network services. In a further redevelopment, a single cabling solution is lowering the outlay on new infrastructure.

About BT

BT is one of the world’s leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include IT and networking services, local, national and international telecommunications services, and higher-value broadband and internet products and services.

BT consists principally of three lines of business:

BT Retail, providing fixed and mobile communications services and solutions and IT and networking services to more than 20 million business and residential customers in the UK. It is also a leading UK internet services provider.
BT Wholesale, providing network services and solutions within the UK to more than 600 fixed and mobile operators and service providers including the provision of broadband, private circuits.
BT Global Services, providing IT and networking services internationally to meet the needs of multi-site organisations with European operations. BT Global Services operates in more than 130 countries and also offers international carrier services.

In the year ended 31 March 2004, BT Group’s turnover was £18,519 million with profit before goodwill amortisation, exceptional items and taxation of £2,013 million.

BT Group plc is listed on stock exchanges in London and New York. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/about**

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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world’s greatest challenges. 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.

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’s independent review and planned restatement or revisions of its previously announced or filed financial results; the resolution of the accounting issues announced on November 11, 2004, including the outcome of discussions with the United States Securities and Exchange Commission (SEC); the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel’s filing obligations on support facilities and public debt obligations; any potential delisting or suspension of the Company’s or NNL’s securities; the adverse resolution of litigation, investigations, intellectual property disputes and similar matters; the sufficiency of Nortel’s restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel’s customers; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; the communication by Nortel’s auditors of the existence of material weaknesses in internal controls; Nortel’s ability to recruit and retain qualified employees; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flows; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s 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’s 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’s purchase contracts; the impact of Nortel’s 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; and the future success of Nortel’s strategic alliances. 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 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.

*Nortel, the Nortel logo, the Globemark, Symposium, CallPilot and Optivity are trademarks of Nortel Networks.

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

Contact for Press and Analysts:

Giorgia Casnedi
Nortel
+44 1628 43 3117
casnedi@nortel.com

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