Alcatel Teams With Norstan to Provide Leading-Edge Customer Service and Systems Integration; Alcatel Selects Norstan as Certified Service Provider for North America.

Business Editors

MINNETONKA, Minn. & CALABASAS, Calif.--(BUSINESS WIRE)--Mar. 27, 2001

Alcatel (NYSE:ALA) and Norstan Inc. (Nasdaq:NRRD) today signed a strategic agreement in which Norstan will provide implementation services, technical support and professional services to Alcatel's business partners.

This will complement Alcatel's indirect sales and support strategy for the OmniPCX 4400 IP-based PBX in North America.

Alcatel's primary objective for selecting Norstan as a certified service provider is to allow Alcatel's business partners the flexibility to either provide their own services or to subcontract their service requirements to Norstan. As an Alcatel certified service provider, Norstan can provide installation, technical support, emergency on-site field support and inventory management for Alcatel's award-winning OmniPCX 4400.

The Yankee Group estimates that approximately half of the $19.5 billion that users spend on phone and voice mail systems goes to installation, service and after-market products. Norstan has successfully provided these types of services to North American clients for the past 27 years. "Norstan, one of the five largest enterprise services organization in North America, is an asset to the Alcatel distribution strategy," said Joe Gagan, senior analyst, Yankee Group. "It provides national coverage and a staff of convergence-trained technicians that will expand the reach and depth of Alcatel partners wanting to subcontract post-sale services."

In addition to on-site installation and end-user training, Norstan will also provide 24 x 7 support from Norstan's three Customer Solutions Centers located throughout North America. The Solution Centers provide first- and second-level problem isolation and resolution, initiations and tracking of all service requests and dispatching of on-site maintenance resources as required.

"Alcatel recognizes that high-level services and support are critical to end customers. This tie with Norstan allows Alcatel Business Partners to utilize Norstan's 'legendary service' in providing customers with quality post-sales service in concert with their own strategic support strategy," said Tom Wilburn, senior vice president of Alcatel North America Enterprise Business. "Through this agreement with Norstan, Alcatel aims to provide a blending of talents to ensure the highest level of support to OmniPCX Business Partners and its end-customers."

"We're delighted to form a strong alliance with Alcatel, a leader in IP telephony," said Jim Granger, president and chief executive officer of Norstan. "This agreement reinforces Norstan's commitment to supporting and growing our channel-support based strategy and leverages our expertise in supporting voice products. The agreement is a 'win-win-win' for Norstan, Alcatel and those enterprise customers who choose this exciting platform."

Added David Dwyer, senior director, Alcatel OmniPCX Support, "With the launch of the OmniPCX 4400 in North America last year, Alcatel created a Channel Readiness Program for our business partners. The goal of this program is to develop a service plan that will allow our business partners to effectively install, configure and troubleshoot the OmniPCX 4400 autonomously. In addition to the Channel Readiness Program, Alcatel Business Partners will benefit from the immediate and permanent level of excellent support offerings that Norstan can provide."

Alcatel OmniPCX 4400

The Alcatel OmniPCX 4400 is an advanced IP-based voice communications system. Based on a client/server UNIX architecture, the Alcatel OmniPCX 4400 includes scalability from 50 to 50,000 users, innovative Reflexes telephone handsets, 99.999 percent reliability, one-number mobility, unified messaging, voice-over IP networking with quality of service management and comprehensive network management.

About Norstan

Norstan Inc. (Nasdaq:NRRD) is a leader in technology solutions and services, providing e-business, convergence and communications services to business clients worldwide. With headquarters in the Twin Cities, Norstan's sales and consulting service offices are located throughout North America. Through its operating units, Norstan is a single source provider for leading-edge technology solutions and world-class technology services. To learn more, visit the Norstan Web site at www.norstan.com.

About Alcatel

Alcatel builds next-generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 130,000 employees and sales of $29 billion (euro $31 billion) in 2000, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com