Genomgång av Nortels produktutbud

2. Genomgång av Nortels produktutbud Bo Westling Account manager Norrköping, oktober 2007

3. Disclaimer Certain statements in this presentation 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. Nortel has made various assumptions in the preparation of its financial outlook in this press release, including the following company specific assumptions: no further negative impact to Nortel's results of operations, financial condition and liquidity arising from Nortel's restatements of its financial results; Nortel's prices increasing at or above the rate of price increases for similar products in geographic regions in which Nortel sells its products; increase in sales to Nortel's enterprise customers and wireless service provider customers in the Asia Pacific region as a result of Nortel's joint venture with LG Electronics Inc.; improvement in Nortel's product costs due to favorable supplier pricing, offset by higher costs associated with initial customer deployments in emerging markets; cost reductions resulting from the 2007 and 2006 restructuring plans; increased employee costs relative to expected cost of living adjustments and employee bonuses; andthe effective execution of Nortel's strategy, including implementation of its Business Transformation initiatives in 2007. Nortel has also made certain macroeconomic and general industry assumptions in the preparation of its financial guidance including: a modest decrease in the growth rate of the gross domestic product of global economies which is lower than the growth rate in 2006; global service provider capital expenditures in 2007 reflecting mid to high single digit growth as compared to high single digit growth in 2006; global growth rate to remain stable with investments in next generation products and services to offset declines in purchases of legacy equipment; and a moderate impact as a result of expected industry consolidation among service providers in various geographic regions, particularly in North America and EMEA. The above assumptions, although considered reasonable by Nortel at the date of this press release, may prove to be inaccurate and consequently Nortel’s actual results could differ materially from its expectations set out in this press release. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s business including: significant competition, competitive pricing practice, cautious capital spending by customers, industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any material, adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong; the sufficiency of recently announced restructuring actions; any negative developments associated with Nortel’s suppliers and contract manufacturing agreements including our reliance on certain suppliers for key optical networking solutions components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Nortel’s current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Nortel’s efforts to expand internationally; potential additional valuation allowances for all or a portion of Nortel’s deferred tax assets if market conditions deteriorate or future results of operations are less than expected; a failure to protect Nortel’s intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; any negative effect of a failure to maintain integrity of Nortel’s information systems; changes in regulation of the telecommunications industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; Nortel’s potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy; (ii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of senior notes covenants, or on obtaining additional secured debt pursuant to the provisions of  indentures governing certain of Nortel’s public debt issues; Nortel’s below investment grade credit rating; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; or any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and any declines in the market price of Nortel’s publicly traded securities; and (iii) risks and uncertainties relating to Nortel’s prior restatements and related matters including: any negative impact on Nortel and NNL of such restatement; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; the significant dilution of Nortel’s existing equity positions resulting from the approval of its class action settlement; any significant pending or future civil litigation actions not encompassed by Nortel’s class action settlement; any unsuccessful remediation of Nortel’s material weakness in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC); or any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K 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..

4. Large Enterprises Wireless Operators Government Nortel Solutions Wireline Operators Small and Medium Businesses Cable Operators Nortel is a recognized leader in delivering communications capabilities that help eliminate today's barriers to efficiency, speed, and performance by simplifying networks and connecting people with information

5. ADVANCED RESEARCH DEVELOPMENT • Key technologies for the future • MIMO • OFDM • Web Services • SOA • Location/Presence • Custom ASICs • PBT/PBLSP • Etc. • University research • Standards leadership • Strategic patents portfolio • Over 10,000 developers • Global presence • Core competencies • Optical • Voice • Signaling • RF • Layer 2&3 • Applications • Real time • OAM • Etc. • 24 million person hours of R&D capacity Lösningar kommer från teknologier

6. Clients Communication Servers Network Applications • BCM for advanced IP communications for small sites • Communications Server 1000—fully featured, server-based IP PBX • Communications Server 2100—“Superclass” softswitch for large campus enterprises • Multimedia Communications Server 5100— Enterprise multimedia communications • Desktop • Soft Clients • Wireless Clients • Call Pilot and UM2000 unified messaging • Contact Centers • IVR • Application Gateways • Converged Office (Nortel/Microsoft ICA solution) • Ethernet Switching • Secure Routers • WLAN/Mesh • Application Switches • Security • Optical SAN extension • Business continuity solutions Enterprise Solution Areas Our portfolio

7. Lösningar - produktområden • – Vad använder er organisation?

8. Lösningar - produktområden

9. CS 1000 Portfolio Product Offerings • CS 1000E – for new VoIP customers • Scalable up to 22,500 IP users • Redundant and non-redundant configurations • Flexible deployment configuration options • Lead product in our VoIP offering CS 1000E (IP Signaling Server running on COTS) • CS 1000M – for evolution of existing TDM base • Evolution of our Meridian 1 to support VoIP • Scalable up to 15,000 IP users • Supports up to 16,000 digital or analog users • Leverages existing hardware for low cost migration to VoIP CS 1000M (Option 61)

10. Key Messages Broad portfolio offers choice in client type Seamless, Reliable, Robust & Feature Rich Clients offer added value IP Phone 1100 Series IP Phone 2000 Series (Phase 2) IP Audio Conference Phone 2033 1120E 1140E 2001 2002 2004 2007 Exp Mod 2000 Series 3rd party H.323 /SIP IP Phones (Regionally offered) 1150E Exp.Mod IP Phone 1535 Soft Clients • Application • Gateways • Security • Voice Quality • Diagnostics • Infrastructure Mobile USB Adapter Multimedia PC, Web, & Integrated Clients IP Softphone 2050 / 6350 Wireless Mobile Voice Client 2050 Dual Mode Mobile Client 3100 Wireless Client for BlackBerry WLAN Handsets2210/2211/2212 Nortel IP ClientsCurrent Portfolio Offering Desktop

11. Print Graphs and Reports Traffic, Directories Navigate Systems Moves, Adds, & Changes Monitor Faults & Perform Maintenance Telecom Billing CS 1000 Telephony Manager CS 1000 Telephony Manager(previously called Optivity Telephony Manager ) • Mixed Web and Windows application suite with network level navigation • Touches all FCAPS • Configuration: all customers, • Faults: target 50 systems or less, • Accounting: small to medium customers (S&M-2003-0260) • Single point of access including Element Managers • Windows OS Telephony Manager

12. Application Gateway 1000/2000 • Delivers optimized content and applications to IP phones • Pre-packaged applications with Voice Office • Express Directory • Visual Voice Mail • Broadcast Alerts • Zone Paging • Transformed applications • Leverage existing vertical applications • Easy to use “point-and-click” Design Studio • Custom applications • API level integration IP PHONE 2007 IP PHONE 1140E

13. Unified Messaging Drives ProductivityCallPilot and Nortel Unified Messaging 2000 What is Nortel Unified Messaging? • Voice, fax, email and video messaging within a single interface • Access to messages from the desktop e-mail client, Web interface or telephone How does Nortel Unified Messaging work? • Two architectural approaches: • Integrated Architecture • Unified Architecture • Reduce communications overhead by minimizing LAN and WAN traffic, decreasing user training, operating independently of the corporate email server and supporting a variety of clients

14. Contact Center 6.0 Feature Highlights • Report Creation Wizard • Generates custom reports without third party report writers • Increased Resiliency • Standby Server with automatic or manual fail-over • Reduced Total Cost of Ownership • Single DVD Software Installation for CC6.0 Suite • Simplified Multimedia Deployment • CCM/CCT Co-residency • Innovative SIP Contact Center • Supports new and emerging media including video, 3G wireless video and 3G wireless chat • Unified Agent Desktop • Provides a single agent interface for the management of all contacts regardless of media • Corporate Software Licensing • Reduces cost of ownership by centralizing control of software licensing The SIP Contact Center and the Converged Agent Desktop enable the Expert Anywhere Solution

15. IVR – MPS500 Self Service and Speech • Provide reliable, convenient and cost effective access for customers wherever they are, 24 hours a day • Make customers happy - offer the extra convenience and expanded options they like using natural speech capabilities • Automate routine tasks to relieve your service reps, allowing them to focus on more complex customer interactions • Reduce average call length to speed service delivery and lower operating costs

16. Nortel Contact Recording Customisable Shortcuts • Capture customer intelligence to help serve customers better • Quickly resolve disputes • Clarify customer instructions • Assess up-selling opportunities • Assist in training (best practices calls) • Quickly search & retrieve calls • Browser-based for easy access • Graphically “see” call and identify points of interest • Prolonged silence, higher volume, raised voice Click speaker to replay Ability to email secure link to call Detailed Search Criteria Right click here to save as WAV Real and elapsed time shown

17. Most complete integrated real-time communications solution Multimedia Communication Server 5100 • Reducing communications costs • Enhancing mobility for the virtual enterprise • Improving productivity and enhancing the human communications experience • Tight integration of applications with telephony • Choice in adaptive client interfaces Nortel Application Center MCS 5100 Instant Messaging Conferencing AdHoc & Meet Me Collaboration Application Sharing Chat IP Telephony Presence Mobility Personal Agent Video Employee Productivity

18. Nortel Microsoft Integration Advantage • Software only integration • No hardware or gateways required • Less complexity, less cost of ownership • Tightly integrated • CS 1000 redundancy mechanisms for Microsoft connectors so if one server / system fails, another server/system takes over control and provides Microsoft connectors • Active Directory integration • Nortel Multimedia Convergence Manager (MCM) s/w loaded on LCS/OCS to translate SIP addresses to CS 1000 dial plan Microsoft LCS/OCS Nortel CS 1000 Direct SIP & SIP CTI Interface Voice Communications (SIP) & Remote Call Control – (SIP CTI)

19. Multimedia Client For IBM Lotus Notes • Combines the collaboration capabilities of MCS with IBM Lotus Notes in an easy to use interface • MCS Access provided via plug-in to IBM Lotus Notes • No need to launch a separate application or window for the client • Enables quick and easy access to MCS collaboration • One click access from Notes to many functions • Provides a single tool for all communication

20. Secure Multimedia Controller 2450 Securing Services & Resources Media Gateways Signaling Servers Secure Multimedia Zone Perimeter Firewall Call Server SMC 2450 Enterprise Network Threat Protection System (IDS/IPS) Multimedia Services Mgmt Contact Center Unified Messaging IP Phones b Secures your VOIP Communication System from Internal Threats

21. Enterprise Core Networking High performance with high availability

22. Nortel WLAN 2300 Series Ready for Mainstream WLAN Connectivity • Designed for high-quality IP Telephony, multi-media and data • Service resiliency with wireless threat protection and no single point of failure • Smooth scaling on all dimensions A ‘Perfect Fit’ for any implementation • Broad product portfolio meets specific needs of common topologies • Flexible policy management fits with existing infrastructure • Can be partitioned into many unique service domains Streamlined deployment & operations • Accurate planning tool • Self-provisioning access points • Dynamic RF management

23. Nortel Secure Network Access (NSNA)LAN Solution Components Internet Tunnel Guard applet pushed to the PC for compliance checking. Tunnel Guard reports non-compliant PC to SNAS. SNAS moves PC to a Green VLAN with appropriate access level to the corporate network. SNAS moves the PC to the Yellow (quarantine) VLAN. PC downloads patches for remediation. A PC tries to connect to the corporate network. After repair is complete, Tunnel Guard reports to SNAS that the PC is now compliant. Corporate Network PC connects to the Red VLAN (untrusted). User and PC must be authenticated (Login). Trusted Ethernet Routing Switch 5500 stack Secure Network Access Switch (SNAS) Remediation Server

24. Nortel’s Router Portfolio Nortel Secure Router 1000 series • Enables secure end-to-end converged solutions whilst providing high performance WAN access for enterprise branch offices and remote sites. Nortel Secure Router 3120 • Powerful modular system that converges routing, security and multimedia traffic forwarding in a single cost-effective platform for enterprises. Nortel Secure Router 4134 • High-end performance and capacity addresses the routing and connectivity needs of enterprise branch, regional or headquarters sites Nortel Business Secure Router 222/252 • Converged broadband access routers that provides a high-speed, always-on secure connection to the Internet.

25. IP OC WLAN IP PBX PSTN Fax UC Integrated BranchSecure Router 4134 ICA UC Integrated Branch Ethernet Security Quality of Experience Management WAN Advanced Routing • First integrated branch office device with embedded Microsoft intelligence • Superior Quality of Experience for all UC applications over any type of WAN connection Media Gateway • Ability to turn on multiple functions simultaneously (QoS, security, VoIP) and maintain wire-speed performance • Reduced CAPEX and OPEX – consolidated functions into one device

26. Enterprise Policy manager

27. What is It?Nortel Application Switch • A high performance Ethernet Switch with added intelligence • Performs Layer 4-7 switching to balance, accelerate and secure traffic • Makes intelligent decisions based on content (not just addressing) using deep packet inspection • Integrates routing and switching by forwarding traffic at layer 2 speed using layer 4-7 information • Deploy in data center, POP or at network edge Application Availability, Performance and Security

28. What is It?Nortel Application Accelerator • Data Centre appliance used to accelerate the delivery of any web-based applications over the Internet and across WANs • Delivers benefits to end-users everywhere without the need to deploy specialised equipment on the user side • Employs techniques like compression, caching and protocol optimisations to reduce the amount of data, significantly improving delivery times • Asymmetrical acceleration product

29. Ultimately improves the accuracy of threat detection and remediation over traditional IDS/IPS solutions What is It?Nortel Threat Protection System (TPS) • Enterprise-class Intrusion Detection/Prevention System (IDS/IPS) to monitor, analyze, identify, alert and block network attacks • Key element of a Layered Defense architecture • Utilizes SNORT open source rule base • Consists of up to four components: • Intrusion Sensors to inspect traffic, identify and alert on potential threats • Defense Center to manage the sensors, co-ordinate, prioritize and analyze alerts, and initiate a response • Threat Intelligence (RTI) Sensors to passively identify network assets and reduce false positives by providing behavioral context • Remediation devices to block attacks

30. What is It?Nortel VPN Gateway • Remote access security appliance that extends the reach of enterprise applications to remote employees, partners, and suppliers • Uses native SSL capability of web browsers and traditional IPSec access to offer the industry’s most flexible and cost effective remote access VPN solution • Supports all applications; optimized for VoIP • Deployed at central site for: • Individual and managed Remote Access VPN • Mobile application gateway • Application acceleration