WASHINGTON, DISTRICT OF COLUMBIA--(CCNMatthews - July 31, 2007) -The U.S. Social Security Administration (SSA) has awarded a 10-yearcontract, valued up to US$300 million, for the SSA's TelephoneSystems Replacement Project (TSRP) to a team led by Nortel GovernmentSolutions(1), a U.S. company wholly owned by Nortel(1)(TSX:NT)(NYSE:NT).
The award calls for replacement of the SSA's existing worldwidetelephone systems with IP technology to create a converged voice anddata network. This network will enable a high-quality citizen serviceexperience through service delivery points designed by NortelGovernment Solutions to accommodate an anticipated influx of newusers, including retiring, largely Internet-savvy 'baby boomers.'
Expected to be among the world's largest enterprise VoIPimplementations, the network will replace existing telephone systemsin nearly 1,600 SSA field offices. It will include a 55,000-agentcontact center with carrier-class unified messaging and comprehensiveinteractive voice response (IVR) capabilities. It will also provideextensive security capabilities to protect citizen information andsupport for disabled users in compliance with Section 508 of theRehabilitation Act (29 U.S.C. Section 794d).
"The fact that our offering came out on top speaks volumes aboutour world-class technology, services and performance," said ChuckSaffell, chief executive officer, Nortel Government Solutions."Drawing from Nortel's comprehensive portfolio of enterprise andservice provider VoIP solutions gave us the ability to offer the bestsolution for a customer and a network of this magnitude."
Moving to a converged voice and data network will enable SSA toexpand and improve service levels, consolidate monthly recurringpublic network service costs and decrease operating and maintenancecosts while establishing a platform to support future applicationsand services.
The Nortel Government Solutions team will provide VoIP hardware,software, integration and deployment services for SSA regionaloffices, program service centers and field offices. Network operationservices, user support and training are also included.
Nortel Government Solutions is already heavily involved in anumber of major VoIP transitions for U.S. Government customersworldwide, including the U.S. Air Force and the Department ofDefense.
The Nortel Government Solutions team includes General Dynamics,Black Box Network Services, Shared Technologies, AT&T, York Telecom,High Wire Networks, NetIQ and Pal-Tech.
About Nortel Government Solutions
Nortel Government Solutions is a network-centric integrator,providing the services expertise, mission-critical systems and securecommunications that empower government to ensure the security,livelihood, and well being of its citizens. Headquartered in Fairfax,Va., Nortel Government Solutions offers a one-stop shop for solutionsdesigned to improve workforce productivity, reduce operating costs,and streamline inter-agency communications. Please visitwww.nortelgov.com for more information.
About Nortel
Nortel is a recognized leader in delivering communicationscapabilities that make the promise of Business Made Simple a realityfor our customers. Our next-generation technologies, for both serviceprovider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to helpeliminate today's barriers to efficiency, speed and performance bysimplifying networks and connecting people to the information theyneed, when they need it. Nortel does business in more than 150countries around the world. For more information, visit Nortel on theWeb at www.nortel.com. For the latest Nortel news, visitwww.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 similarlanguage and are considered forward looking statements or informationunder applicable securities legislation. These statements are basedon Nortel's current expectations, estimates, forecasts andprojections about the operating environment, economies and markets inwhich Nortel operates. These statements are subject to importantassumptions, risks and uncertainties, which are difficult to predictand the actual outcome may be materially different. Further, actualresults or events could differ materially from those contemplated inforward-looking statements as a result of the following (i) risksand uncertainties relating to Nortel's business including:significant competition, competitive pricing practice, cautiouscapital spending by customers, industry consolidation, rapidlychanging technologies, evolving industry standards, frequent newproduct introductions and short product life cycles, and other trendsand industry characteristics affecting the telecommunicationsindustry; any material, adverse affects on Nortel's performance ifits expectations regarding market demand for particular productsprove to be wrong; the sufficiency of recently announcedrestructuring actions; any negative developments associated withNortel's suppliers and contract manufacturing agreements includingour reliance on certain suppliers for key optical networkingsolutions components; potential penalties, damages or cancelledcustomer contracts from failure to meet delivery and installationdeadlines and any defects or errors in Nortel's current or plannedproducts; fluctuations in foreign currency exchange rates; potentialhigher operational and financial risks associated with Nortel'sefforts to expand internationally; potential additional valuationallowances for all or a portion of Nortel's deferred tax assets ifmarket conditions deteriorate or future results of operations areless than expected; a failure to protect Nortel's intellectualproperty rights, or any adverse judgments or settlements arising outof disputes regarding intellectual property; any negative effect of afailure to maintain integrity of Nortel's information systems;changes in regulation of the telecommunications industry or otheraspects of the industry; any failure to successfully operate orintegrate strategic acquisitions, or failure to consummate or succeedwith strategic alliances; Nortel's potential inability to attract orretain the personnel necessary to achieve its business objectives orto maintain an effective risk management strategy; (ii) risks anduncertainties relating to Nortel's liquidity, financing arrangementsand capital including: any inability of Nortel to manage cash flowfluctuations to fund working capital requirements or achieve itsbusiness objectives in a timely manner or obtain additional sourcesof funding; high levels of debt, limitations on Nortel capitalizingon business opportunities because of senior notes covenants, or onobtaining additional secured debt pursuant to the provisions ofindentures governing certain of Nortel's public debt issues; Nortel'sbelow investment grade credit rating; any increase of restricted cashrequirements for Nortel if it is unable to secure alternative supportfor obligations arising from certain normal course businessactivities, or any inability of Nortel's subsidiaries to provide itwith sufficient funding; any negative effect to Nortel of the need tomake larger defined benefit plans contributions in the future orexposure to customer credit risks or inability of customers tofulfill payment obligations under customer financing arrangements; orany negative impact on Nortel's ability to make future acquisitions,raise capital, issue debt and retain employees arising from stockprice volatility and any declines in the market price of Nortel'spublicly traded securities; and (iii) risks and uncertaintiesrelating to Nortel's prior restatements and current restatement andrelated matters including: any negative impact on Nortel and NNL ofthe current restatement; legal judgments, fines, penalties orsettlements, or any substantial regulatory fines or other penaltiesor sanctions, related to the ongoing regulatory and criminalinvestigations of Nortel in the U.S. and Canada; the significantdilution of Nortel's existing equity positions resulting from theapproval of its class action settlement; any significant pending orfuture civil litigation actions not encompassed by Nortel's classaction settlement; any unsuccessful remediation of Nortel's materialweakness in internal control over financial reporting resulting in aninability to report Nortel's results of operations and financialcondition accurately and in a timely manner; Nortel's inability toaccess, in its current form, its shelf registration filed with theUnited States Securities and Exchange Commission (SEC); or any breachby Nortel of the continued listing requirements of the NYSE or TSXcausing the NYSE and/or the TSX to commence suspension or delistingprocedures. For additional information with respect to certain ofthese and other factors, see Nortel's Annual Report on Form10-K andother securities filings with the SEC. Unless otherwise required byapplicable securities laws, Nortel disclaims any intention orobligation 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 ofNortel Networks. Nortel Government Solutions and the NortelGovernment Solutions logo are trademarks of Nortel GovernmentSolutions Incorporated.
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