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October 24, 2001
Nortel Networks, IBM to Deliver Voice Over IP Products, Services to Businesses
Powerful Platform on WebSphere to Position Companies for Cost Savings, New Applications
RESEARCH TRIANGLE PARK, N.C. – Nortel Networks* [NYSE/TSE: NT] and IBM* plan to deliver a suite of hardware, software and services to provide customers with open-standards based, converged voice and data networks designed to increase efficiency, simplify management and reduce costs as much as 30 percent, while protecting existing investments and quality of service.
Nortel Networks and IBM plan to incorporate IBM WebSphere e-business infrastructure software and DB2 database software into Nortel Networks Symposium* Contact Center solutions portfolio. IBM eServer xSeries systems have been tested by Nortel Networks and are compatible with Nortel Networks contact center applications, providing customers with a reliable and high-performance computing platform. These activities will expand on the existing relationship between Nortel Networks and IBM Global Services to include open-standards based, integrated Voice over IP (VoIP) products from Nortel Networks, enabling applications such as desktop video conferencing; desktop message management for phones, faxes and e-mail; and plug-and-play software phones as portable as laptop computers. “Enterprises realize their networks play a critical business role in enabling new revenue streams, optimizing core operations, enhancing the customer experience and reducing overall costs,” said Frank Plastina, president, Metro Networks, Nortel Networks. “These unified IBM and Nortel Networks solutions will be designed to provide customers with a seamless migration path to IP networks – minimizing risk, maximizing savings, and protecting existing technology investments.” Probe Research expects the global addressable packet telephony market to grow to US$8.5 billion in 2003. IBM Global Services – the first provider to offer this breadth of IP portfolio, consulting and integrations skills – expects to deliver a range of world-class IP-based services, including those based on Nortel Networks technology. “IBM is pleased that Nortel Networks plans to build its next generation, open-standards based Customer Contact Center products on WebSphere and DB2, ” said Steve Mills, senior vice president and group executive, IBM Software Group. “Nortel Networks solutions take a customer-centric approach by providing choice in both how and when to migrate the benefits of IP Telephony at a pace that is right for customers, while also protecting their investment.” In addition to the planned joint offerings announced today, IBM already integrates a range of Nortel Networks products, including OPTera* Metro DWDM products, and Intelligent Internet products such as Contivity* VPN, Alteon* Web switching and content load balancing, Shasta*, and the Passport* series. IBM is the world’s largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit www.ibm.com. Nortel Networks is a global leader in networking and communications solutions and infrastructure for service providers and corporations. The Company is at the forefront of transforming how the world communicates, exchanges information and profits from the high-performance Internet through capabilities spanning Metro Networks, Wireless Networks and Optical Long Haul Networks. Nortel Networks does business in more than 150 countries and can be found on the Web at www.nortelnetworks.com. 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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to make acquisitions and/or 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; 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; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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 Networks, the Nortel Networks logo, the Globemark, OPTera, Contivity, Alteon, Shasta and Passport are trademarks of Nortel Networks. IBM is a trademark of IBM.Contact for Press and Analysts:
Carrie McGranahan
Nortel Networks
212-317-4252
cbmcgranahan@nortel.com
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