Vantis Credit Union Improves Member Services with Nortel SIP Solution

Expert Anywhere Solution Enables Video-Based Communications

MARCH 06, 2006, ORLANDO - Vantis Credit Union has deployed the Expert Anywhere Contact Solution from Nortel* [NYSE/TSX: NT], to allow members to interact with service representatives through video kiosks at ATM sites. This allows members to complete transactions which previously required a branch visit. This new solution is designed to make Vantis more competitive by allowing representatives to be more readily accessible regardless of location via a SIP-based multimedia system that allows video, instant messaging and web collaboration.

Expert Anywhere also allows subject matter experts such as loan and investment advisors to be available to the contact center across branch locations to minimize wait times that might otherwise result in abandoned calls.

Vantis is based in Winnipeg, Canada and serves 22,000 members through six branches in Winnipeg with two rural branches in Manitoba.

’’As a result of this new technology, we are restructuring our internal processes for easy accessibility of our members files from any branch or outlet to provide excellent service at any given time all while reducing our cost base" said Michel Audette, president and CEO, Vantis. "This isn’t about cutting our highly-skilled member service reps, that’s not the effective way. We are focusing on profitable growth and providing superior service. It’s about bringing in new tools that will improve communications with our members"

"We completed a detailed technical analysis to see who has the leading solution. Nortel has the best technology and most importantly, the support required in going forward. Nortel has the capacity to support our project encompassing a call center environment and ongoing application development. The MSC5100 offered a mature platform unparalleled by any competitor. We were very comfortable that Nortel could provide the level of service we need today and as we grow" Audette said.

"Vantis’ innovative roadmap for improving member services with SIP-based applications like video-based services is a typical example of how Nortel is helping its customers maximize their resources through advanced communication solutions" said Roxann Swanson, vice president and general manager, Multimedia Applications, Nortel.

The Expert Anywhere Contact Solution is an integral element of the Nortel Application Center, a SIP-based integrated suite of multimedia applications, consisting of Contact Center 6.0, Multimedia Communication Server (MCS) 5100 and the Communication Server (CS) 1000 IP PBX platforms. Nortel’s Expert Anywhere solution makes agents, no matter where they are, more accessible to customers so that organizations can build better and longer lasting customer relationships.

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. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. 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, and any related potential dilution of Nortel’s common shares; the findings of Nortel’s independent review and implementation of recommended remedial measures; the outcome of the ongoing 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 control over financial reporting and the conclusion of Nortel’s management and independent auditor that Nortel’s internal control over financial reporting is ineffective, which could continue to impact Nortel’s ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel’s and NNL’s failure to timely file their financial statements and related periodic reports, including Nortel’s inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); 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 and December 14, 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; increased consolidation among Nortel’s customers and the loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; 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 and consolidation 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; general stock market volatility; negative developments associated with Nortel’s supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; 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; any undetected product defects, errors or failures; the future success of Nortel’s strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business. 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, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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