First Commercial SIP-Based Multimedia Services in Switzerland

ZURICH, Sept. 25 /PRNewswire-FirstCall/ - TDC Switzerland AG, operating under the brand name sunrise, is supplying anytime, anywhere Internet access using a Nortel(x) (NYSE/TSX: NT) carrier IP solution for network enhancement. New services, aimed at sunrise's residential and business customers, include the web-based sunrise webphone and multimedia services with wireless and wireline Internet access. These services are believed to be Switzerland's first commercial SIP-based multimedia services.

"As Switzerland's leading independent telecommunications provider we keep our competitive edge by delivering innovative communication services that are understandable, easy to use, and help bring people together," said Thomas Stemmler, network director, TDC Switzerland AG. "As the wave of demand rolls for our services, our Nortel solution can also be used to deliver affordable mobile video."

"Nortel's solution gives sunrise the freedom to deliver affordable multimedia communications services now and the opportunity to evolve its network to deliver a true quad play of affordable services - such as voice, Internet/data, entertainment and video - as demand grows," said Thomas Marfurt, managing director, Nortel Switzerland.

The sunrise enhanced network infrastructure solution delivers Switzerland's first commercial SIP-based IP telephony service and is based on the Nortel Communication Server 2000 Compact (CS2K) and the Multimedia Communication Server 5200 (MCS5200). In addition, the Nortel Ethernet Routing Switch 8600 and the Nortel Switched Firewall provide carrier-class reliable, secure and intelligent network access and routing solution for the converged applications. As well as technology, the Nortel solution included planning, design and integration services from the Nortel Global Services portfolio.

Nortel ranked number one in the global markets for service provider softswitches and gateways for the first half of 2006, according to Synergy Research Group.

Nortel's Global Services portfolio offers a full range of integrated professional services to provide end-to-end, multi-vendor network solutions that deliver significant business value. Nortel provides the necessary services to design, deploy, manage and maintain today's multi-vendor networks and to facilitate transition to next generation technologies.

About sunrise

sunrise is the leading independent telecommunications provider in Switzerland. 2.15 million customers enjoy the benefits of sunrise mobile, fixed network, and Internet services. The hybrid network based on GPRS, EDGE and UMTS technology provides cutting-edge mobile services to over 99% of the population and permits transmission rates of up to 384 Kbps. A wide range of high-quality voice and data services are provided via a high-performance fiber optic network with a total length of more than 7,500 kilometres. As a founding member of the Starmap Mobile Alliance, an association of leading European mobile communications providers, sunrise offers its customers access to first-class services even while they are abroad. sunrise is a brand of TDC Switzerland AG, whose capital stock is owned 100% by the TDC Group. The yallo brand is also owned by TDC Switzerland AG.

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 http://www.nortel.com. For the latest Nortel news, visit http://www.nortel.com/news.

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.