American Freightways Turns to Norstan and Siemens for New Voice and Data Network.

Business Editors/High-Tech Writers

MINNEAPOLIS--(BUSINESS WIRE)--March 19, 2002

Norstan, Inc. (Nasdaq:NRRD), a leading provider of communications technology solutions, today announced that American Freightways, a FedEx Freight operating company, has chosen Norstan Communications, Inc. to design and install a new enterprise communications network based on Siemens' HiPath convergence technology. Thirty additional locations will be using this technology in conjunction with the existing seventy-four American Freightways locations already supported by Norstan, a Siemens Certified Enterprise Partner. The long-term goal of American Freightways is to progress towards a communications model that embraces the advantages of convergence while offering many of the critical redundancies and reliabilities of a PBX system. Norstan expects to complete the installation by the end of March, 2002.

American Freightways' legacy communications network, based on aging PBX and key system technology, was becoming increasingly difficult and expensive to support. The company began its migration to a new Siemens network in 1998 with limited roll-out at its largest locations. American Freightways chose Norstan and Siemens to develop a full migration path to a new network, based on the Siemens HiPath 3500 IP communications platform.

"As a shipping leader, real-time information is central to our success. So the efficiency, functionality, scalability and reliability of our communications network is critical," said Jeff Amerine, vice president of communication systems at American Freightways. "The Norstan/Siemens team provided us with a migration path for a new network that will allow us to operate more effectively and scale as we grow, and did so with world-class service and support."

The new Siemens HiPath convergence platform will allow American Freightways to seamlessly route voice and data between its various shipping centers via Voice-over-Internet Protocol, provide system redundancy, allow the company to manage the entire network remotely and extend the features of the installed CorNet switching technology. The cost per port will be comparable to a traditional PBX-based communications network. American Freightways expects the new network to save the company between ten to fifteen percent per year in network operating costs.

"We thrive on developing and supporting network solutions that are truly mission-critical for our clients," said Larry Schmidt, executive vice president of Norstan's direct solutions. "We are delighted to partner with Siemens in playing such an important role for American Freightways."

About American Freightways

American Freightways Inc. and its sister company, Viking Freight Inc., comprise the operating subsidiaries of FedEx Freight, the $1.9 billion leader in regional less-than-truckload (LTL) freight service and a member of the FedEx family of companies. Founded in 1982, AF is headquartered in Harrison, Ark. and has approximately 17,000 employees. AF provides all-points direct LTL delivery service through a comprehensive network of more than 260 customer centers in 40 states, plus international and offshore service to Europe, North, Central and South America and the Caribbean. The company has been named to both the Forbes Platinum 400 and the Fortune America's Most Admired Companies lists. The American Trucking Associations has honored AF with the 2001 President's Trophy for outstanding safety. More information about American Freightways can be found at www.af.com.

About Norstan, Inc., www.norstan.com

Norstan, Inc. (Nasdaq:NRRD) ...the technology services people who improve the way their customers communicate. A full-service telecommunications solutions company that delivers voice and data technologies and services, and remanufactured equipment to select corporate end-users and channel partners. Norstan also offers a full range of technologies for contact center design, messaging, infrastructure, conferencing and mobility. Headquartered in the Twin Cities, Norstan, a company small enough to care, yet big enough to serve, has offices located throughout North America. To learn more, visit the Norstan Web site at www.norstan.com.

About Siemens HiPath Enterprise Convergence Architecture

Siemens HiPath enterprise convergence architecture offers customers practical convergence today. The HiPath family of products represents one of the most comprehensive IP convergence portfolios on the market. It includes industry-leading IP- and circuit-switched communications platforms, IP telephones, multimedia PC clients, IP-based applications for mobility, messaging, and the contact center, and professional services. HiPath solutions are reliable and feature-rich, ensuring customers a smooth, self-paced migration to IP and substantial investment protection. With over one million enterprise customers, Siemens is the number-one ranked enterprise solutions provider in the world according to leading analyst firms. For more information about HiPath products, solutions and services, visit http://www.siemensenterprise.com

This release contains forward-looking statements within the meaning of the Private Securities Litigation Acts of 1995. A number of factors should be considered in conjunction with the above forward-looking statements, including changes in economic and market conditions, factors related to the development of new technologies, product pricing, industry regulation, management of growth, integration of acquisitions, and other factors set forth in cautionary statements included in Norstan's Form 10-K and other documents filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date of the release. The company undertakes no obligation to update these forward-looking statements to reflect events and circumstances that may arise after the date of this release.

Norstan and associated product names are trademarks or registered trademarks of Norstan, Inc. in the United States and/or other countries. All other products and services mentioned in this document may be trademarks of the companies with which they are associated.