Nortel, Verizon Deliver Healthcare Solutions to Leading Providers

DALLAS - Montefiore Medical Center of New York City and Cambridge Health Alliance of Boston, two of the largest and most widely recognized health care systems in the United States, have deployed communications solutions from Nortel [NYSE/TSX: NT] and Verizon Enterprise Solutions Group to help provide superior patient care and reduce costs.

The Cambridge Health Alliance communications network uses an optical Ethernet service from Verizon in conjunction with the Nortel Optical Metro 3500 multi-service platform. Montefiore Medical Center's network uses an optical service from Verizon that uses the Nortel's Optical Metro 5000.

These solutions have given both health care providers the increased network speed and capacity necessary to support such advanced patient care technologies as the Picture Archive Communications System (PACS), which provides computerized management and distribution of X-rays, Computed Tomography (CT), Magnetic Resonance Imaging (MRI) and other diagnostic images.

With PACS and other advanced applications, Montefiore Medical Center and Cambridge Health Alliance can make diagnostic imagery and other patient files immediately available regardless of location, improving patient care and maximizing the efficiency of such critical resources as radiology personnel. In addition, both health care providers now have the ability to converge voice and data traffic for greater efficiency and lower costs, along with greater network flexibility to address current and future communications needs.

"To take advantage of new healthcare applications like PACS, we need a network that is fast and efficient," said Robert Lewis, director of networks and telecom and chief information security officer, Cambridge Health Alliance. "With the Verizon-managed Nortel health care communications solution, we can now use the bandwidth available to us in more flexible increments, as opposed to increasing capacity with costly leased lines. Nortel and Verizon are helping us to maximize our network resources and to expand them as needed in the future."

"Emerging technologies and applications are driving advancements in health care and improving overall patient care," said Brian Hoch, director of computing resources, Montefiore Medical Center. "By implementing services from Verizon and Nortel, we are confident our network can support currently available and new therapeutic and diagnostic methods while providing the resiliency and security to ensure that our mission-critical patient files and medical information are always available."

These two new health care network deployments were announced at the 2005 Annual Healthcare Information Management Systems Society (HIMSS) Conference and Exhibition being held February 13-17 at the Dallas Convention Center. More than 15,000 healthcare organizations in the United States and Canada rely on Nortel solutions.

Extending its commitment to delivering advanced technologies for the healthcare market, Nortel also announced at HIMSS 2005 the development of an innovative technology called Dynamic Resource Allocation Controller (DRAC), which is designed to improve the flow of PACS digital images. With DRAC, high priority, time-sensitive, applications and files can be flagged to receive increased bandwidth at the time of data transfer ensuring real-time access to critical radiology images by health care workers.

"We work with health care providers to improve service and enhance the patient experience while striving to exceed ongoing communications needs in an industry where service is of mission-critical importance," said Dan Young, vice president, Global Industry Solutions Marketing, Nortel. "There is no other industry where timely communications is more essential."

Nortel demonstrations at HIMSS 2005 (booth #s 143 and 6469) will include industry-leading mobility solutions for nurses, doctors and hospital administrators and business continuance, disaster recovery, and data storage and retention solutions for hospitals and remote clinics, as well as advanced radiology applications. Nortel will also offer presentations from customers who are already benefiting from Nortel healthcare communications solutions.

Health care-focused solutions from Nortel allow multiple networks to be consolidated onto a single communications infrastructure, resulting in improved network performance and positioning health care providers to drive significant savings, reduce operating costs and improve patient care. Nortel offers a range of enterprise, optical and wireless solutions designed specifically to meet the requirements of health care customers. These solutions include mobile healthcare applications, security, high-performance networking, business continuity and disaster recovery, IP (Internet Protocol) telephony, multimedia collaboration, contact centers and self-service applications.

Verizon Enterprise Solutions Group is one of the leading providers of basic and advanced communications products and services to large business, government and education customers in the United States with a complete range of voice, video, data and IP-related services. Verizon Select Services, Inc. provides long-distance service for ESG. For more information about VZ ESG's integrated network solutions, visit www.verizon.com/enterprisesolutions.

Verizon Communications Inc.

With more than $71 billion in annual revenues, Verizon Communications Inc. (NYSE:VZ) is one of the world's leading providers of communications services. Verizon has a diverse work force of more than 210,000 in four business units: Domestic Telecom serves customers based in 29 states with wireline telecommunications services, including broadband, nationwide long-distance and other services. Verizon Wireless owns and operates the nation's most reliable wireless network, serving 43.8 million voice and data customers across the United States. Information Services operates directory publishing businesses and provides electronic commerce services. International includes wireline and wireless operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.

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 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; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the 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 controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in August 2004; 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; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; 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 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, which is currently not available, of Nortel's forward 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 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.

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*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

Media contacts:
Jennifer McClain, Nortel, 972-684-4844
Angelika Kempf, Nortel, +44 1628 43 7340
Briana Gowing, Verizon, 972-718-6202