City of Des Moines Selects Norstan For Internet Protocol Deployment.

Business Editors/High-Tech Writers

MINNEAPOLIS--(BUSINESS WIRE)--April 15, 2004

Norstan, Inc. (Nasdaq:NRRD), a leading provider of communications solutions and services, today announced that Norstan Communications, Inc. was selected by the City of Des Moines, IA to upgrade their communications network to enable Internet Protocol (IP) capabilities in several remote locations. This implementation, which began the City's migration from a traditional TDM platform to IP telephony, was completed in February 2004.

The City of Des Moines, an existing Norstan customer, required a communications solution that would facilitate the migration to IP telephony, while allowing them to leverage their existing communications infrastructure investment. Norstan selected the Siemens HiPath 4000 IP solution for the upgrade, as it will allow the City to integrate the IP solution with their existing circuit-switched communications infrastructure while at the same time increasing capacity and functionality. The solution upgrade will deploy IP telephony capabilities in 30 of the City's remote locations, enabling better service and allow the City to reduce its communications costs through the elimination of Centrex and a reduction in T-1 line costs.

"Our goal was to create for the City of Des Moines an easy and efficient convergence migration," said Donna Warner, Norstan senior vice president of Solutions & Services, Central and Western U.S. "Like many enterprise customers, convergence will begin in remote locations, small offices or divisions within a larger organization. We have expertise in installation, service and providing on-going maintenance of IP-based communications solutions that will assist our customers as they migrate to IP at their own pace."

The Siemens HiPath 4000 solution offers a variety of choices, expansion opportunities and added value to existing communication solutions investments. For the City of Des Moines, it will allow packet-switched or circuit-switched communications, or a mixture of both, depending on their specific communications needs and a reduction in operating cost through centralized, web-based systems management.

In addition to this upgrade, valued at approximately $450,000, Norstan will provide on-going maintenance and support for the City's new communications solutions.

About Norstan, Inc.

Norstan, Inc. (Nasdaq:NRRD) is a full-service communications solutions and services company that delivers voice and data technologies, and remanufactured equipment to corporate end-users, channel partners and the public sector. Norstan offers a full range of voice and integrated technologies for PBX/IP communications, customer contact centers, conferencing, messaging and infrastructure. The company has offices located throughout the U.S. and Canada. To learn more, visit the Norstan website at www.norstan.com.

Cautionary Statement Under the Private Securities Litigation Reform Act of 1995

This release may contain 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, access to adequate long-term financing and other factors set forth in cautionary statements included in Norstan's Form 10- K and other documents as 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 this 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. Disclosure of revenue dollars are not intended to reflect materiality, and are subject to confidentiality provisions and customer consent.

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