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Nortel Power Savings Drive Enterprise Customer Adoption

July 8, 2008 6:03 AM ET

Enterprises are plotting a course to save money and at the same time, help the environment by minimizing networking power consumption with Nortel’s(1) (TSX: NT)(NYSE: NT) energy-saving networking solutions.

Customers are adopting Nortel communications solutions after factoring in the projected energy savings, demonstrating the impact of Nortel’s industry leadership in energy-efficiency. Customers that have taken the energy challenge include Prairie Cardiovascular Consultants(2), Sweetwater Sound(2), Earth Rangers(2) and partner, Ronco Communications and Electronics Inc.(2)

“As customers move toward unified communications, we have designed our networking solutions to be energy efficient from the start. Providing relief from soaring energy costs through reduced energy consumption is not only good for business, it’s good for the environment,” said Joel Hackney, president, Enterprise Solutions, Nortel. “Nortel products are proven by third-party, independent experts to use significantly less power than the primary competitor while delivering robust performance and reliability. The introduction of the Nortel Energy Efficiency Calculator is a simple way to show exactly how much power and cost savings can be accrued by comparison.”

Nortel’s energy efficient products have been proven by new, independent testing to use less power as compared to the incumbent, legacy provider. The new test, conducted by the Tolly Group(2), shows similar, end-to-end competing networking solutions cost up to 64 percent more in electricity costs to operate over five years as compared to Nortel’s solutions. The new report, “Nortel Converged Data Network Solution: Evaluation of Energy Consumption and Projected Costs for a Converged LAN Campus, Data Center and WAN,” can be accessed here.

Coinciding with the availability of the results of the new report is the on-line availability of the Nortel Energy Efficiency Calculator, now available for anyone to use. It offers robust functionality, allowing users to customize deployment scenarios based on networking configurations, equipment and its associated cooling costs, local power costs by region and other factors. It provides the means to calculate their networking energy requirements with greater accuracy than ever before, offering valuable insights regarding trade-offs associated with deployment options. Most importantly, it is designed to be simple and intuitive.

Prairie Cardiovascular Consultants, a nationally-recognized leader in cardiovascular care, was building a highly resilient, high-speed data infrastructure to support three main facilities as well as 29 remote offices statewide. They turned to Nortel’s 8600 and 5500 series Ethernet Routing Switches for the solution. “Not only were we able to achieve a highly redundant network core, we realized a significant savings of both power and heat-generation by using Nortel’s ERS line of switches”, said Sean O’Hara, manager of Systems Engineering, Prairie Cardiovascular. “We used the Nortel Energy Efficiency Calculator and found we could save thousands of dollars over competing approaches over five years using Nortel’s energy efficient products in our data and communications centers.”

“As a hospital, our primary concern is for the care of our patients, and Nortel’s solution enables us to take those savings and use them where they are needed the most. At the same time, the solution reduces the networking power requirements as well as those associated with cooling and facilities,” he said.

Sweetwater Sound, a leading retailer of musical instruments and pro audio equipment, recently built a green headquarters building, one of the firstLeadership in Environmental and Energy Design(2) (LEED) Gold-certified in Indiana. Given their commitment to energy efficiency, it was only logical that they chose their networking solution to complement their green ideals. John Hopkins, vice president of operations for Sweetwater, explained, “We just feel like it’s the right thing to do. We’ve always been very environmentally friendly. The ‘green’ building concepts extend beyond just the building. It’s a comprehensive plan looking at the entire site. We were pleased that Nortel is focused on energy efficiency as we use their data networking, voice and contact center solutions.

“We have reviewed the Nortel Energy Efficiency Calculator and believe this is a significant advancement for companies to model both their voice and data networks’ power consumption and BTU load. These capabilities resulted in our ability to size and reduce our cooling and electrical requirements for the data center, which in turn helped in our LEED certification. It also worked into our overall plan since we have been a Nortel customer for several years. I guess you could say we were energy efficient with Nortel solutions all along,” he said.

Earth Rangers is a Canadian non-profit organization that harnesses the power of entertainment to help children learn ways in which to protect the environment. An example of its own environmental stewardship is its headquarters, which has a LEED Gold designation, and uses 79 percent less energy than a typical building its size.

“Nortel shares our interest in energy conservation and recycling,” said Peter Kendall, executive director of Earth Rangers. “Nortel was able to incorporate these values into designing a communications solution that integrates many business functions into a single device – thus reducing power and cooling requirements. We are pleased about reusing our exiting digital telephones and using Nortel’s VPN technology to allow our employees to work remotely instead of commuting to work everyday. We also appreciate Nortel for teaming with our organization to help us achieve our environmental goals.”

Partners are also finding the tool invaluable, given the dramatic increase in green IT initiatives.

“Energy efficiency is top of mind among many customers, and the ability to chart their energy needs now is an extremely important consideration for purchasing decisions,” said John Wrona, executive vice president, Sales & Marketing, Ronco Communications and Electronics, Inc. “The Nortel Energy Efficiency Calculator is very user-friendly and simple, yet is precise in its ability to chart networking energy requirements. Most importantly, it is helping us close deals with customers. Nortel has been on a tear recently and their message that their switching products offer superior performance and consume half the power over their primary competition has struck a chord,” he said.

Nortel’s energy efficient converged data network solutions can save large enterprise customers millions of dollars in power and cooling costs over the life span of their network deployment. For example, take a large enterprise network connecting thousands of users and IP devices (IP Phones) with hundreds of Ethernet switches located in New York City where electrical costs average 15 cents per kilowatt hour. Comparing the power and cooling savings over five years, the Nortel network is estimated to cost $3.2M less to operate than the equivalent design of the primary competitor.

Take the energy efficiency challenge and see what savings can be realized with Nortel’s solutions. In North America, please visithttp://www.hyperconnectivity.com/saveenergy. For other regions, please visithttp://www.hyperconnectivity.com/getthefacts.

The Nortel Energy Efficiency Calculator helps find ways to minimize networking energy consumption and associated expenses. It is an IT planning tool that allows decision makers to measure their energy consumption costs and identify the cost saving opportunities of working with Nortel. It enables customers to input various network deployment trade-offs in network design and determine their potential energy cost savings when using Nortel solutions.

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.

(2)This is a 3rd party link as described in our Web linking practices.

Use of the terms “partner” and “partnership” does not imply a legal partnership between Nortel and any other party.

Pat Cooper
(425) 450-7523
Email: pat.cooper@nortel.com

Website: www.nortel.com

Copyright 2008 Market Wire

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