Nortel Offers Energy Savings Credit to Combat the "Cisco Energy Tax"(2)

TORONTO, ONTARIO, Aug 05 (MARKET WIRE) --
To help North American enterprise data managers combat the "Cisco Energy
Tax"(2) and reduce operating costs, Nortel(1) (TSX: NT)(NYSE: NT) is
offering an energy savings credit program for new customers of its data
networking solutions.

Nortel is providing new customers purchasing its data solutions for the
first time with a credit approximately equal to their first-year's energy
savings as calculated by the Nortel Energy Efficiency Calculator (NEEC).
The calculator analyzes deployment scenarios based on different
configurations, equipment, cooling costs, regional power costs and other
energy factors specific to the customer's network over one full year. The
approximate energy savings is then discounted by Nortel from the cost of
a new data network.

"Customers participating in this promotion may double the energy saving
benefits of Nortel data solutions - first in the upfront credit, then
through reduced energy consumption throughout the first year," said Net
Payne, vice president, North America Marketing, Nortel. "We are confident
that once data managers see firsthand the savings available to them by
integrating Nortel data equipment into their existing networks, they will
want to expand their use of our products."

Independent third-party tests by the Tolly Group(3) indicate that
compared to Cisco, Nortel data networks(2) consume up to 40 percent less
power. Tolly Group's latest test shows that operating a Cisco core switch
can cost up to 64 percent more in energy costs during a five year period
than a comparable Nortel solution.

Qualifying for the Energy Savings Credit program is simple. Any
qualifying company that is new to Nortel data solutions, with a minimum
of 1,000 employees and network sites in North America is eligible. This
includes companies with competitor's equipment and existing Nortel voice
customers. Nortel data customers who have made no Nortel data purchases
from January of 2005 until December of 2007 are also eligible for the
promotion.

The Energy Savings Credit campaign runs through December 12, 2008 and is
available via Nortel direct sales or its channel sales teams. Please
visit the Nortel Website for more program details. Certain restrictions
apply.

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.

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 from those contemplated in forward-looking
statements. For additional information with respect to certain of these
and other factors, see Nortel's Annual Report on Form10-K, 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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel
Networks.

(2)The Tolly Group Report Number 208298, July 2008, reported the results
of a power consumption evaluation of six Nortel converged data network
products consisting of large and medium core and wiring closet Ethernet
Routing Switches (ERS), enterprise branch office routers, and IP phones
compared to similar Cisco products on the basis of power consumption and
heat dissipation, and five-year operational cost. See also the Tolly
Group Report Number 208275, January 2008, and Info-Tech Research Group
Report (January 30, 2008). "Cisco Energy Tax" refers to up to 40 percent
energy consumption savings when using these Nortel products instead of
comparable Cisco products. Cisco is a registered trademark of Cisco
Systems, Inc. and/or its affiliates in the U.S. and certain other
countries.

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

Contacts:
Nortel
David Durham
(919) 905-2206
Email: daviddu@nortel.com
Website: www.nortel.com

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