Nortel and SIPquest Bring SIP-Based Multimedia Services to Wireless Devices

Comments

SAN JOSE, Calif.–(BUSINESS WIRE)–March 7, 2005–Nortel* (NYSE:NT)(TSX:NT) and SIPquest, a leading developer of Session Initiation Protocol (SIP) based IP Telephony software applications and technology, are working together to enable service providers to deliver advanced SIP-based multimedia services to residential and corporate customers over wireless handheld devices.


The companies will initially focus on delivering advanced capabilities such as Presence and IM for services delivered to handhelds such as the RIM’s Blackberry, Sony-Ericcson P900, and other smartphones. Using SIPquest’s IMS cellular client, a soft client residing on the handheld device, and Nortel’s Multimedia Communication Server (MCS) 5200, service providers will be able to deliver value-added services and productivity-enhancing tools to cellular users.

SIPquest and Nortel are demonstrating these capabilities at Spring VON in San Jose this week (Nortel booth #809, SIPquest booth #527).

This relationship builds on the strength of both companies. SIPquest is known as a pioneer in SIP-based technologies for corporate users. The company has already developed software dubbed ‘disruptive’ by analysts in the area of WiFi networks. Nortel is a global leader in enabling service providers to deliver a rich suite of multimedia and collaboration services that can be seamlessly integrated with existing telephone services. Moreover, both companies believe in open solutions based on industry standards.

“Service Providers will be able to take advantage of network convergence and deliver, under their own brand, new and innovative multimedia services to their customers,” said Alain Mouttham, SIPquest CEO. “This is an initial step in enhancing the user experience. As the market evolves, we anticipate bringing cellular and WiFi client solutions together to provide dual-mode functionality and a seamless end-user experience.”

“Both companies share a vision of transforming networks, enhancing the human experience, igniting global commerce and improving security,” said Jim Dondero, vice president of Carrier Packet Networks marketing, Nortel. “Today’s announcement is an important first step in delivering profoundly powerful communications to end-users, providing a level of control and personalization from a handheld device not yet experienced. We will work with SIPquest to evolve these capabilities even further.”

Nortel’s MCS 5200 seamlessly integrates voice with video, collaboration, and presence services and enables service providers to deliver hosted multimedia communications services to create new revenue-generating opportunities. These SIP-based next generation, multimedia services enhance the ability for both enterprise and consumer end-users to communicate and collaborate more effectively and efficiently.

SIPquest’s Wireless Collaboration Client is an intuitive application that allows the end-user to quickly access capabilities such as Presence, Instant Messaging and advanced call routing capabilities. It can be rebranded and customized to allow service providers to deliver services valued by the end-user.

About SIPquest

SIPquest (www.sipquest.com) is a technology pioneer with specific expertise in Session Initiation Protocol (SIP). By embedding or bundling SIPquest SIP-based software products with their own products, telecom and datacom equipment vendors are able to take advantage of the growing demand for IP Telephony services and capabilities. SIPquest’s application and component suite includes IP-based audio conferencing, video conferencing, data conferencing, application sharing, instant messaging, presence, a multimedia collaboration agent, voice mail, auto attendant, a SIP to H.323 signaling converter, an extensible SIP server and mobile WiFi roaming and collaboration capabilities. SIPquest is committed to expanding the use of SIP technologies through an exclusive licensing agreement with Columbia University’s Internet Real-Time Lab and Professor Henning Schulzrinne, Chief Scientific Advisor to SIPquest and co-author of SIP. Located in Ottawa, Canada, SIPquest has the most complete and advanced suite of Session Initiation Protocol (SIP) software modules and components on the market.

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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world’s greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.

Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel’s restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel’s results of operations, financial condition and liquidity; the findings of Nortel’s independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel’s previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel’s internal controls over financial reporting; the impact of Nortel’s and NNL’s failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel’s inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (“SEC”); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel’s and NNL’s publicly traded securities; the impact of management changes, including the termination for cause of Nortel’s former CEO, CFO and Controller in April 2004; the sufficiency of Nortel’s restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;

cautious or reduced spending by Nortel’s customers; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; Nortel’s ability to recruit and retain qualified employees; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel’s customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement, which is currently not available, of Nortel’s forward purchase contracts; the impact of Nortel’s supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; and the future success of Nortel’s strategic alliances.

For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel 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.

*Nortel is a trademark of Nortel Networks. All other trademarks are properties of their respective owners