A wealth of innovative ideas arises from a diverse workforce.

At Nortel, diversity isn’t just about gender, age, ethnicity or cultural background. It's a way of thinking differently and making sure we are getting the best ideas, effort and performance from all of our people. When we talk about diversity at Nortel, we're talking about building an inclusive environment that allows us to leverage the contributions of all of our people as we strengthen our competitiveness in the global marketplace. A wealth of innovative ideas arises from a diverse workforce -- ideas that ultimately transform into action and success for our customers and employees.

Nortel's commitment to diversity is a business priority that starts right at the top with President and CEO Mike Zafirovski. Business leaders understand that a diverse workforce is a critical element of their business success, and that they will be accountable for goals and objectives that will help build a more inclusive and diverse environment.

Diversity is about tapping into the power and strengths of the global community of Nortel employees and suppliers, living and working in over 150 countries around the world.

• Diversity Business Councils
• INROADS
• International Women's Day
• Developing a diverse supplier base
• Diversity operating principles

Our Diversity Councils are one of the key elements of our diversity and inclusion strategy at Nortel. There are several councils either in place or currently being launched including the Black Business Council, Asian Business Council, Latino Business Council, Disabilities Business Council, Women's Business Council and Gay, Lesbian, Bisexual, Transgender (GLBT) Business Council. They provide a forum for employees to network, provide opportunities for professional development, promote cultural awareness and encourage community outreach - all the while focusing on creating council goals and objectives that can be linked to the business strategy. The councils are formally structured with senior executive sponsorship and top management co-leaders. Councils are open to all employees interested in participating.

Nortel has cultivated a strong partnership with INROADS in many of our locations. INROADS is a non-profit organization that develops and places talented minority university students with participating companies, and prepares them for corporate and community leadership. INROADS maintains a presence in the US, Canada, Mexico and South Africa. The specific minority groups participating in the INROADS program depend on the region in which the students are being recruited. Nortel has been affiliated with the INROADS program for more than 20 years and has won numerous corporate awards during that time.

March 8 has been recognized as International Women's Day for over 30 years. It was founded by the United Nations to recognize the contribution of women to strengthening international peace and security and also acknowledge that securing social progress and the full enjoyment of human rights and freedoms requires the active participation of women. This year's global theme was "Women in Decision Making."

Nortel marks this day in offices around the globe with local events that are intended to celebrate the accomplishments and contributions of women in the workplace, and explore some of the issues and opportunities they share in common.

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Diversity means more than recruiting and fostering a diverse workforce. Nortel is equally committed to fostering diversity by doing business with a diverse base of suppliers. Customer diversity requirements are growing year over year, and Nortel wants to ensure that it is compliant with its customers' contract requirements in this area. Our efforts include:

• Identifying and interfacing with potential suppliers interested in doing business with Nortel.
• Assisting potential suppliers in identifying Nortel personnel who are responsible for the procurement of their respective products and services.
• Ensuring that small, minority- and women-owned businesses that meet Nortel's needs are given every opportunity to compete as subcontractors and suppliers.

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• People - The best combination of people and sound business practices drives our approach to achieve a winning future for our company. We intend to help strengthen Nortel's position as a leader and employer of choice in an ever-changing marketplace.
• Leadership & Management - Diversity is a leadership and management issue that impacts our ability to compete globally. We will continuously encourage Nortel leaders to position diversity as a key business priority, and work to ensure accountability for managing diversity rests with our executives and managers.
• Scope - To consider diversity in every aspect of Nortel's business.
• Access & Opportunity - To create and broaden opportunities for an increasingly diverse workforce, customer and supplier base.

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