Nortel Invests US$5 Million in Galway, Ireland Customer and Technology Center

Center Will Develop Multimedia Customer Contact Applications for Global Markets GALWAY, IRELAND -- (MARKET WIRE) -- May 03, 2007 -- Nortel(1) (TSX: NT)(NYSE: NT) today opened its new global Customer and Technology Center at its Mervue campus in Galway, Ireland. Nortel has invested US$5 million in the new Center which is responsible for developing customer contact center applications for markets around the world. Today's opening also marks Nortel's celebration of 25 years of research and development in the Galway area. The new Center is developing contact center solutions focused on ensuring customer enquiries to businesses are answered as quickly and efficiently as possible, incorporating multimedia capabilities such as instant messaging and video. The Center will also showcase applications that provide customers with the opportunity to participate in demonstrations tailored specifically for verticals markets such as healthcare, education and finance. At a Nortel Galway campus ceremony today, the Centre was officially opened by Frank Fahey, Teachta Dala (TD), Minister of State at the Department of Justice, Quality and Law Reform. The ceremony was attended by Darryl Edwards, president, EMEA, Nortel as well as Nortel customers and employees. Local dignitaries and guests from Galway's business and political communities also attended. "This is a great day for Nortel and Galway because it underscores the global importance of the role that the Galway campus plays for the company," said Edwards in his remarks at the Center's opening. "The Technology and Customer Center is part of our multi-million dollar investment in the region and our talented Galway team." "Nortel should be congratulated for its commitment to Galway over the last 25 years," said Minister Fahey. "Nortel has developed rapidly since its arrival here and we are delighted that its Irish-based operation is continuing to play a key role in its global transformation. Today's opening speaks volumes to the depth, quality, expertise and loyalty of the Irish workforce in the West region." Nortel began operations in Galway in 1973. A research and development team was established in 1982. Today, its Galway campus has global responsibility for one of Nortel's most sophisticated technologies - multimedia contact centers. The solutions have enhanced customer service for companies worldwide including: Lloyds TSB, Fossil and Guy's and St Thomas' NHS Foundation Trust. "Nortel in Ireland has evolved significantly over the past 25 years," said Dave Quane, managing director for Nortel, Ireland. "Today's opening is testimony to the innovation and expertise this facility is expected to deliver to Nortel." About Nortel Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news. Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings 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. (1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. Contacts: Nortel David Silke +353-9-173-3338 Email: dsilke@nortel.com Nortel Alison Steel +44-1628-432597 Email: asteel@nortel.com Website: www.nortel.com