Frost & Sullivan Names Nortel Networks as Recipient of 2004 Speech Solutions Competitive Strategy Award.

PALO ALTO, Calif. -- Frost & Sullivan recognized Nortel Networks' leadership of the North American interactive voice response (IVR) market and presented it with the 2004 Speech Solutions Competitive Strategy Award for its outstanding ability to advance its market position through innovative product offerings.

Nortel Networks(a) has achieved a strong leadership position in speech technology and deployment in enterprise IVR platforms, based on Frost & Sullivan's recent analysis, North American Telephony-Based Speech Technologies and Solutions Markets, published on May 5, 2004.

"Nortel Networks is at the forefront of innovation and is a leader in the deployment of leading-edge speech technologies, such as advanced natural language understanding and speaker verification," said Elka Popova, industry analyst, Information and Communications Technologies Group, Frost & Sullivan. "We believe that Nortel Networks' vision and competitive product strategy enable it to develop and deliver top-notch speech-enabled solutions to carriers and enterprises in various vertical markets."

"Our philosophy is that applications are the fabric that connects today's enterprise, and Nortel Networks' goal is to enable our customers to serve applications seamlessly, securely and with the greatest performance available. To that end, Nortel Networks is focused on supplying world-class self-service solutions using advanced speech technologies," said Roxann Swanson, general manager and vice president, Enterprise Multimedia Applications, Nortel Networks. "The 2004 Speech Solutions Competitive Strategy Award from Frost & Sullivan demonstrates that we are delivering leading-edge solutions that enable businesses to drive revenue-generating opportunities by being more flexible, responsive and tightly integrated with their customers."

Nortel Networks' portfolio of self-service solutions with an increasing focus on advanced speech capabilities has contributed greatly to its strong market position. Since the introduction of its Voice Processing Series/Information Server, which automates call center functions to provide greater customer satisfaction, Nortel Networks has consistently innovated in introducing new and superior products catering to a variety of customer needs.

Among its recently introduced products, the Media Processing Server (MPS) self-service platforms offer enhanced speech recognition capabilities. The products are targeted at medium to high-end contact centers and carriers, including IP Centrex providers. These platforms allow the delivery of Web Centric Self-Service applications, which allow customers a variety of options to resolve issues previously unavailable, dramatically decreasing call abandonment and operational expenses.

Nortel Networks recently announced IVR customers include Sparkasse Vest Recklinghausen and IKEA.

Nortel Networks' leadership also extends to its speech-processing platform, Open Signal Computing and Analysis Resource (OSCAR), which provides multi-function capabilities and supports multiple speech technologies. This platform ensures optimal and predictable speech performance and accounts for variations in natural language, including different dialects, accents and grammatical construct from end-users.

Through its development of speech applications, tools and professional services, Nortel Networks continues to lead as an innovator in the speech-recognition market and has designed and deployed more than 150 advanced speech applications in different countries and languages. Nortel Networks also offers plug-in tools that enable customers to develop their own applications, and is a known leader in speech-related professional services.

Nortel Networks' foresight in identifying the potential of packaged applications gives it a distinct technological competitive advantage. The company will be able to realize the opportunities in targeting cost-conscious customers for whom expensive, customized solutions are not a viable option. Supported by its diversified product portfolio, extensive customer base and strong brand name recognition, Nortel Networks is well positioned for continued leadership in designing and delivering speech-enabled solutions to customers across a wide range of vertical markets.

About Nortel Networks

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.

About Frost & Sullivan

Founded in 1961, Frost & Sullivan is recognized as a global leader in growth consulting. Frost & Sullivan Awards are presented to companies that demonstrate excellence in their industry, commending the diligence, commitment and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine award recipients in a vast variety of market industries and landscapes. For further information, visit www.frost.com.

(a) Nortel Networks is a trademark of Nortel Networks.