Nortel Unified Communications Let InterContinental San Francisco Get Personal

Hospitality Solution Intended to Help Boost Guest Satisfaction, Hotel Revenues

. October 14, 2008

SAN FRANCISCO, CA, April 9, 2008. Billing itself as the most technologically advanced hotel in California, the new InterContinental San Francisco** is welcoming its first guests with a personalized travel experience made possible by a hospitality solution built on unified communications from Nortel* [NYSE/TSX: NT].

Color touchscreen VoIP phones greet each guest as they enter their rooms. Not enough pillows? The phone's easy-to-use menu puts 'Housekeeping' one touch away. Looking for tickets to a Warriors** basketball game? Touch 'Concierge'. Need an umbrella? Touch 'Weather' to get the forecast. Got business to attend to? A secure, reliable wireless LAN provides Internet access throughout the 32-story hotel.

Just opened in late February in San Francisco's trendy South of Market (SoMa**) neighborhood, the InterContinental San Francisco also expects to minimize costs and maximize revenues with Nortel's Hospitality Solution.

For example, housekeeping can report with a room's touchscreen phone that it is ready for the next guest. Each room's minibar is connected to the VoIP network and programmed to report billing and restocking requirements automatically. Voice over wireless LAN handsets allow staff to respond quickly to guest requests from anywhere in the hotel without incurring cell phone charges.

"Business or pleasure, we want our guests to feel productive and stay connected while enjoying the comforts of home," said Gustaaf Schrils, vice president of technology and services, InterContinental Hotel Group, Americas. "The flexibility of Nortel's hospitality solution in meeting our specific needs is helping us further our mission to offer a one-of-a-kind experience for improved guest loyalty and bolstered profitability."

Nortel's Hospitality Solution also provides the InterContinental San Francisco with a platform for future innovation. The wireless LAN can be extended to provide location-based services. Such services can, for example, provide dining and shopping recommendations using a guest's current location in the hotel with wireless RFID sensors. This same capability can also be used to help keep guests safe and the property secure, as well as for asset tracking and other inventory services.

"To set itself apart in the highly competitive hotel market, InterContinental San Francisco had the vision to incorporate the most advanced communications technology into its building plans to offer an unsurpassed guest experience both today and tomorrow,," said Joel Hackney, president, Enterprise Solutions, Nortel. "Our solution helps unify communications to address multiple facets of their guests' needs and provides the hotel a foundation for true competitive differentiation."

Hotels like the InterContinental San Francisco are making guests feel at home and maximizing the bottom line with innovative hospitality solutions built on unified communications from Nortel. These solutions can include Nortel Global Services ranging from network implementation and support to applications and management, allowing hotels to focus on guest satisfaction rather than networks.

Nortel's Hospitality Solution for the InterContinental San Francisco includes Nortel Communication Server 1000, Nortel IP Phone 2007, Nortel Application Gateway 1000, Nortel Hospitality Messaging Server 400, Nortel's WLAN 2300 Series with VoWLAN handsets for wireless voice and data, and full project management, integration and maintenance services.

Nortel Hospitality Solutions help provide an enhanced guest experience, differentiated services for meeting and event planners, and improved staff productivity for some of the world's most popular hotels and hotel brands. These include Detroit's MotorCity CasinooHotel,** a state-of-the-art entertainment venue that opened in November 2007 and The Cove Atlantis,** a luxury hotel at Kerzner International's resort on Paradise Island in Nassau, Bahamas.

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

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