Nortel Works with Microsoft's Network Access Protection Furthers Strategy of Developing Security Solutions

Nortel (NYSE:NT)(TSX:NT) has teamed with Microsoft to support Microsoft's Network Access Protection (NAP), an extensible standards-based technology that will enable users to more securely access their corporate networks and reduce the complexity of network access for IT administrators.


Microsoft and Nortel are working together with other industry-leading security companies to develop industry standards, network designs and solutions intended to secure critical information by protecting the communications infrastructure as well as user computing devices like desktop and laptop computers.

"Our work with Nortel on Network Access Protection is focused on providing the greatest security capabilities to our customers in a holistic fashion to ensure our security solutions stop viruses, worms, predatory software and other threats regardless of where they are before those threats spread," said Steve Anderson, a director in the Windows Server group.

"By ensuring Network Access Protection solutions are open, standards compliant and interoperable, customers can take greater control of their infrastructure and security posture, and enforce their security measures before allowing access," Anderson said.

"Our focus on protecting the world's most critical information is predicated on working with companies that provide the best technology to enable unmatched security for businesses and service providers alike," said Atul Bhatnagar, vice president and general manager, Enterprise Networks, Nortel. "Our security solutions continue to lead the industry, currently serving more than 100 million users worldwide. Teaming with Microsoft continues Nortel's efforts to drive standards-based security and is another proof point in our strategy to ensure intrinsic network security from the network core to user devices."

Nortel specializes in protecting IP (Internet Protocol) multimedia communications with a layered approach to network defense. Nortel provides critical access technology based on the award-winning Nortel Virtual Private Network (VPN) Gateway and Secure Routing Technology portfolios. Nortel's VPN solutions include products that ensure end-users are compliant with the broader enterprise security policies, with the ability to deny or restrict network access accordingly or to force end-user compliance with subscription-style updates.

Nortel helps enterprises and service providers control critical business processes by building standards-compliant, open security solutions that integrate into today's IT environment and adapt to tomorrow's security threats. Designed to protect multimedia communications and ensure user quality of experience, Nortel solutions actively respond to even unforeseen security threats by building resiliency and adaptability into every solution and network plan. Nortel's 'security in the DNA' design philosophy protects the network at every touch point by building security measures into every new product, solution and network blueprint.

Nortel's solutions deliver capabilities to secure computing, network, applications and end-user environments while maintaining unmatched reliability. Nortel helps governments, businesses and individuals stay ahead of threats, including hacker intrusion, worms and denial of service attacks, by protecting personal information and by delivering enhanced network management capabilities.

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 Nortel's independent review and planned restatement or revisions of its previously announced or filed financial results; the resolution of the accounting issues announced on November 11, 2004, including the outcome of discussions with the United States Securities and Exchange Commission (SEC); the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel's filing obligations on support facilities and public debt obligations; any potential delisting or suspension of the Company's or NNL's securities; the adverse resolution of litigation, investigations, intellectual property disputes and similar matters; 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; the communication by Nortel's auditors of the existence of material weaknesses in internal controls; Nortel's ability to recruit and retain qualified employees; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; 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 flows; 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 of Nortel's 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 Form 10-Q/A and Form 10-K/A 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, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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