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Nortel and SIPquest Bring SIP-based Multimedia Services to Wireless Devices

Phase-one delivers Presence, Instant Messaging, as well as network-based directory and call logs.

San Jose, California - March 7, 2005 - Nortel^* [NYSE/TSX: NT] and SIPquest, a leading developer of Session Initiation Protocol (SIP) based IP Telephony software applications and technology, are working together to enable service providers to deliver advanced SIP-based multimedia services to residential and corporate customers over wireless handheld devices.

The companies will initially focus on delivering advanced capabilities such as Presence and IM for services delivered to handhelds such as the RIM's Blackberry, Sony-Ericcson P900, and other smartphones. Using SIPquest's IMS Cellular Client, a soft client residing on the handheld device, and Nortel's Multimedia Communication Server (MCS) 5200, service providers will be able to deliver value-added services and productivity-enhancing tools to cellular users.

SIPquest and Nortel are demonstrating these capabilities at Spring VON in San Jose this week (Nortel booth #809, SIPquest booth #527).

This relationship builds on the strength of both companies. SIPquest is known as a pioneer in SIP-based technologies for corporate users. The company has already developed software dubbed 'disruptive' by analysts in the area of WiFi networks. Nortel is a global leader in enabling service providers to deliver a rich suite of multimedia and collaboration services that can be seamlessly integrated with existing telephone services. Moreover, both companies believe in open solutions based on industry standards.

"Service Providers will be able to take advantage of network convergence and deliver, under their own brand, new and innovative multimedia services to their customers", said Alain Mouttham, SIPquest CEO. "This is an initial step in enhancing the user experience. As the market evolves, we anticipate bringing cellular and WiFi client solutions together to provide dual-mode functionality and a seamless end-user experience."

"Both companies share a vision of transforming networks, enhancing the human experience, igniting global commerce and improving security," said Jim Dondero, vice president of Carrier Packet Networks marketing, Nortel. "Today's announcement is an important first step in delivering profoundly powerful communications to end-users, providing a level of control and personalization from a handheld device not yet experienced. We will work with SIPquest to evolve these capabilities even further."

Nortel's MCS 5200 seamlessly integrates voice with video, collaboration, and presence services and enables service providers to deliver hosted multimedia communications services to create new revenue-generating opportunities. These SIP-based next generation, multimedia services enhance the ability for both enterprise and consumer end-users to communicate and collaborate more effectively and efficiently.

SIPquest's IMS Cellular Client is an intuitive application that allows the end-user to quickly access capabilities such as Presence, Instant Messaging and advanced call routing capabilities. It can be rebranded and customized to allow service providers to deliver services valued by the end-user.

About 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.

* Nortel is a trademark of Nortel Networks. All other trademarks are properties of their respective owners

About SIPquest

SIPquest is a technology pioneer with specific expertise in Session Initiation Protocol (SIP). By embedding or bundling SIPquest SIP-based software products with their own products, telecom and datacom equipment vendors are able to take advantage of the growing demand for IP Telephony services and capabilities. SIPquest's application and component suite includes IP-based audio conferencing, video conferencing, data conferencing, application sharing, instant messaging, presence, a multimedia collaboration agent, voice mail, auto attendant, a SIP to H.323 signaling converter, an extensible SIP server and mobile WiFi roaming and collaboration capabilities. SIPquest is committed to expanding the use of SIP technologies through an exclusive licensing agreement with Columbia University's Internet Real-Time Lab and Professor Henning Schulzrinne, Chief Scientific Advisor to SIPquest and co-author of SIP. Located in Ottawa, Canada, SIPquest has the most complete and advanced suite of Session Initiation Protocol (SIP) software modules and components on the market.