Kabel BW Selects Nortel for High-Quality VoIP and Multimedia Network Upgrades

FRANKFURT, GERMANY, May 25 (MARKET WIRE) --
Kabel Baden-Wurttemberg, one of the leading cable network operators in
Germany, has selected Nortel(1) (TSX: NT)(OTCBB: NRTLQ) to upgrade its
cable network to support the latest VoIP and multimedia services. With
the implementation of Nortel's CS 2000, IP Multimedia Softswitch and
Camiant's(2) PacketCable Multimedia policy server Kabel BW can offer high
quality multimedia offerings to approximately 3.5 million households in
the Baden-Wurttemberg region.

The Nortel consumer voice and multimedia solution will enable Kabel BW to
supplement traditional voice services with video telephony, interactive
gaming and multimedia messaging applications that will give users new
methods to communicate with colleagues and friends, even if they are
using other networks.

"As one of the leading Triple Play operators in Germany, we are providing
our customers with innovative services now and into the future," said Uwe
Barmann, chief technology officer, Kabel BW. "Nortel's SIP solution
enables us to introduce an extremely innovative technology and also to
lay the foundation for more attractive multimedia applications in the
future."

"More and more consumers are using multimedia applications," said Helmut
Oehl, chief architect, EMEA, Nortel. "This means that network operators
such as Kabel BW need an infrastructure that can support these
bandwidth-intensive services. The consumer voice and multimedia solution
that we offer in conjunction with partner Camiant, helps Kabel BW
optimize its existing network so it can launch new multimedia services
and build market share."

"The Session Initiated Protocol (SIP) which has replaced the NCS protocol
at Kabel BW is the basis for voice and multimedia communication without
time or location constraints," said Randy Fuller, vice president,
Business Development, Camiant. "Forward-looking network operators such as
Kabel BW are using this technology today so that they can proactively
safeguard and grow their multimedia business in the future."

Kabel BW is one of the first cable network operators in the world to
upgrade its network to conform to the SIP and Packet Cable Multimedia
(PCMM) standard. PCMM replaces the previous Network Call Signalling (NCS)
protocol in cable networks, and makes high-quality bandwidth management
for multimedia services possible.

Packet Cable Multimedia (PCMM) is a standard which is based on Internet
Protocol (IP) technology and facilitates numerous multimedia services
such as IP telephony, multimedia conferences and interactive gaming. The
PCMM standard is implemented on Nortel's Communication Server (CS) 2000,
a carrier grade, VoIP Softswitch that is used by MSOs around the world.
Nortel's CS 2000 was the first call server to support the PacketCable
Multimedia standard.

Nortel and longstanding partner Camiant have achieved a substantial
technological lead by developing this PCMM solution using Nortel's
Communication Server 2000 in combination with Camiant's Policy Management
Server.

Combined with the Adaptive Application Engine SIP software, the Nortel CS
2000 enables very simple and innovative services allowing consumers to
easily add phone lines in the house or enhance their phone line with
multimedia applications such as video telephony, multi-party
conferencing, collaboration and media sharing features. Services offered
include secure federated instant messaging, instant file transfer, web
push, co-browsing, buddy lists with presence and whiteboarding. The
solution also includes Nortel's Personal Agent: A web based self-service
line management application that allows users to manage features like
do-not-disturb, find me & follow me (set of rules that define how and in
which device a call will reach the subscriber depending on caller ID,
time of day, day of week, presence status, etc.), click-to-call web
services and much more.

According to Dell'Oro Group, Nortel is the worldwide leader in carrier
VoIP and has maintained that position since 2002. Nortel has shipped more
than 110 million carrier IP voice and multimedia ports to over 340
carriers globally. Nortel provides VoIP solutions to two thirds of IDC's
worldwide listing of top 20 carriers (by revenue).

About Kabel BW:

Kabel BW is Baden-Wurttemberg's fast-growing, innovative provider for
fast Internet, telephone and TV (Triple Play). Kabel BW currently has
over 2.3 million customers and is one of the largest cable operators in
Europe, with every second household in Baden-Wurttemberg using their
products. Kabel BW offers attractive packages with an excellent
price/performance ratio and the highest Internet bandwidths (up to 32
Mbit/s) as well as telephone flat rates. Thanks to the large-scale
modernization of networks, 99% of the 3.5 million cable households in
Baden-Wurttemberg are now able to use the "CleverKabel" products. More
than 4 Gbit/s (4000 Mbit/s) are available to each household for Internet,
telephone and TV in the modernized cable network. Kabel BW customers
currently have both analog and digital reception of up to 400 TV programs
(including HDTV) as well as 150 radio channels.

About Camiant

Camiant's(2) policy control solution, compliant with 3GPP(2)'s(2) Release
8 Policy and Charging Rules Function (PCRF) and CableLabs(R)
PacketCable(TM) Multimedia specifications, empowers broadband service
providers to dynamically manage their networks, ensuring efficient and
high quality delivery of broadband data services, IP based communication
services and rich media content. Network operators worldwide leverage
Camiant's policy expertise to deliver high value applications and
services while containing capital and operational costs associated with
the growing demands of a broadband infrastructure.

Camiant's market-leading Multimedia Policy Engine is the policy control
solution of choice for over 20 fixed and mobile broadband operators
worldwide including Comcast, Cox Communications, Kabel
Baden-Wuerttemberg, Sprint, and Vodafone Hungary. For more information,
visit http://www.camiant.com.(2)

About Nortel (in Administration)

Nortel was placed into Administration on 14 January 2009 and it continues
to trade on a business-as-usual basis while it reviews its options to
recover or restructure. Nortel has announced it is confident that the
products and services it supplies will continue to be supported without
impacting customers for the foreseeable future. Ernst & Young are the
joint administrators for 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)This is a 3rd party link as described in our Web linking practices.

Use of the terms "partner" and "partnership" does not imply a legal
partnership between Nortel and any other party.

Contacts:
Nortel
Sabine Werb
+49 (0)69-6697-1906
sabine.werb@nortel.com

Nortel
Karen Monaghan
613-763-1133
kmonagha@nortel.com

Camiant
Jacey Godfrey
+1-508-303-4147
jgodfrey@camiant.com

Kabel BW
Maurice Bohler
+49-6221-333-1070
maurice.boehler@kabelbw.com

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