Nortel CVAS Continues its Reign as the #1 Supplier in Global Carrier VoIP and Softswitch Markets

Grows Market Share in Every VoIP Segment During 2009

TORONTO -Nortel* [OTC: NRTLQ] Carrier VoIP and Application Solutions (CVAS) today announced that the company continues its reign as the #1 global Carrier VoIP and Softswitch market leader with the largest revenues in the Carrier VoIP market for the fourth quarter of 2009, according to new data from both Infonetics Research and Dell’Oro Group. Nortel CVAS also grew share in every sector of the VoIP market in 2009, according to Infonetics Research.

"Our recent research concluded that the Carrier VoIP equipment market was up 2.8% in the fourth quarter of 2009 and is expected to grow modestly over the next three years" said Diane Myers, directing analyst, service provider VoIP and IMS for Infonetics Research. "Nortel CVAS has been a consistent leader in the Carrier VoIP market due to the company’s foundation of voice expertise and commitment to next-generation VoIP solutions"

Nortel CVAS’ performance in 2009 and momentum in VoIP solution sales and technology innovation have placed the company at the vanguard of the VoIP industry. According to Infonetics Research’s report, Service Provider VoIP Equipment and Subscribers Market Share, Size, and Forecasts - 4Q09, Nortel CVAS grew share in every sector of the VoIP market in 2009. Infonetics also found that Nortel grew its global softswitch share by 4 points to 28 points and over 8 points share in the North American softswitch market, reaching 70 percent revenue share, during the fourth quarter of 2009. In addition, Nortel CVAS’ media gateway revenue share increased by 1.2 points compared to 2008.Infonetics also reported that Nortel CVAS grew 3 points in its global Voice Application Server revenue share to 13.7.

Dell’Oro Group’s report, Carrier IP Telephony Report, 4Q09, ranked Nortel CVAS as the #1 supplier in the global Carrier VoIP and softswitch markets for the fourth quarter of 2009 and for the entire year. This marks Nortel CVAS’ eighth consecutive year holding the leadership position.

"Growing market share in every segment of the VoIP space and being named as the #1 provider in the global Carrier VoIP and Softswitch markets for the past eight years is a powerful customer validation for Nortel CVAS" said Samih Elhage, president, CVAS, Nortel. "Over the past year, we generated significant momentum in VoIP solution sales and technology innovation which led to securing business with more than 40 new Carrier VoIP customers, over 10 of which are Tier 1 operators. These accomplishments, which were validated by the many product and solution awards that we achieved for our work in 2009, occurred during one of the most tumultuous times in the industry and the company’s history, and are a testament to the dedication and expertise of our employees, as well as our strong and loyal customer base of leading carriers across the globe"

Marking another milestone was Nortel CVAS’ Adaptive Application Engine , which has reached over 11 million lines shipped, making the server a leader in the Voice Application Server market. The key drivers behind this success are service provider’s growing demand for Fixed-Mobile Convergence, Adaptive Unified Communications and Web IP applications.

Nortel CVAS’ leading position in Carrier VoIP is a direct result of Nortel CVAS’ unwavering commitment and ongoing innovation in delivering leading-edge VoIP solutions that help service providers boost network efficiencies, lower total cost of ownership and reduce subscriber churn. Nortel CVAS’ solutions include: Business Voice and Multimedia solution, Consumer Voice and Multimedia solution, Transit and Multimedia Interconnect solution, and the Class 5 solution. These solutions have been successfully deployed across the globe to satisfy the needs of both small and the large Service Providers deployments.

Nortel CVAS also announced today that it is a recipient of TMC’s Unified Communications Magazine 2009 Product of the Year Awards .

For information on Infonetics Research, visit www.infonetics.com. For information on Dell’Oro, visit www.delloro.com .

About Nortel CVAS

Nortel CVAS is the recognized leader in the Carrier VoIP space, having shipped more than 121 million Carrier VoIP and Multimedia ports, including over 11 million SIP lines to leading wireline and wireless carriers globally. Nortel has consistently been ranked as the #1 Global Carrier VoIP and Softswitch leader since 2002. Nortel CVAS has customer deployments in all continents with leading carriers and provides VoIP solutions to 80 percent of IDC’s worldwide listing of top 20 carriers (by revenue). For more information on Nortel CVAS see www.nortel.com/ippoweredlife . For the latest Nortel news, visit www.nortel.com/news .

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