New Nortel Healthcare Mobility Solutions to Improve Patient Care, Responsiveness, and Staff Efficiency

NEW ORLEANS - Nortel* [NYSE/TSX: NT] is helping hospitals empower staff to make patient care more responsive and efficient, adding two new mobile communications solutions to its clinical-grade Healthcare Solutions portfolio.

Nortel Clinical Alarms and Alerts and Asset Tracking and Management combine Nortel products and services with proven applications and consulting services from industry-leading partners to help manage medical alerts and hospital assets. Available today in North America, Nortel is demonstrating these solutions at HIMSS07, the annual conference of the Healthcare Information and Management Systems Society (booth #4211).

"Delivering real-time personalized information directly to staff anywhere within a facility empowers hospitals to manage cost challenges while improving patient care and outcomes," said Charles Salameh, vice president, Network Business Solutions, Nortel. "Nortel, together with leading healthcare systems providers, is delivering a complete intelligent communications solution for hospitals."

Nortel Clinical Alarms and Alerts integrates a myriad of hospital notification systems to create a single solution for collecting and routing prioritized, real-time alerts directly to the proper clinician on their mobile device of choice. This solution combines Integrated Alarm Management from Emergin, a leading provider of clinical alarm management solutions for healthcare, with Nortel's mobile VoIP portfolio and Nortel Global Services for design, deployment, integration, management and support.

To support this solution and enable greater clinician mobility, Nortel is also introducing the new Nortel WLAN Handset 6100 Series, planned for availability in 2Q07. These premise-based WLAN handsets fully integrate with Nortel's enterprise VoIP and WLAN platforms, feature extended battery talk and standby times, and provide standards-based IEEE 802.11a/b/g support for flexible application deployment.

Nortel Asset Tracking and Management increases hospital care and efficiency by enabling the tracking and instant location of thousands of monitors and other medical equipment. The solution can also be used for real-time location tracking of both hospital staff and patients - such as infants and other at-risk patients - within the hospital complex. The solution incorporates Real Time Location Systems and Wi-Fi tags from Ekahau and Nortel WLAN 2300 series access points to pinpoint tagged items within three meters accuracy. This solution also includes Syntrack for Health Care, an asset tracking application from intelligent RFID solutions provider Integrated Business Systems and Services, and Nortel Global Services.

Northeast Georgia Health Systems, a growing not-for-profit healthcare community, recently deployed a Nortel WLAN and is considering deploying Asset Tracking and Management for its growing inventory of medical equipment.

"Hospital efficiency and quality patient care depend on the ability to quickly locate critical medical equipment," said Scott Checkoway, network engineer, Northeast Georgia Health Systems. "The Nortel Healthcare Mobility solution will allow us to purchase less equipment while still providing excellent patient care."

In addition to these two new healthcare mobility solutions, Nortel has expanded its Healthcare Solutions portfolio with operations improvement consulting services from IMA Consulting, a leading provider of consulting services exclusively to healthcare providers.

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.

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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 approval of its proposed class action settlement; 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 objective; 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 support 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 support facility; 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 the 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 Form10-K/A, 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.

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