Norstan Provides Wireless Solution to Minnesota Hospital; Mobility Solution Aids Staff in Patient Care and Service.

Business Editors/High-Tech Writers

MINNEAPOLIS--(BUSINESS WIRE)--May 29, 2003

Norstan, Inc. (Nasdaq:NRRD), a leading provider of communications technology solutions, today announced that Norstan Communications, Inc. has deployed a wireless voice-over IP network on a Distributed Antenna System (DAS) for Rice Memorial Hospital. This wireless solution, using a Foxcom Wireless infrastructure, will provide improved communication for the hospital staff which will assist them in improving patient care.

Rice Memorial in Willmar, Minnesota is a city owned acute care hospital, with the mission to be a "leading provider of community based and regional health care services in West Central Minnesota". In support of this mission, Norstan provided a wireless solution leveraging wireless indoor networking products and services from Foxcom Wireless. Specifically, the solution deploys a wireless communications network which delivers WLAN-based voice and data services over a DAS infrastructure that also supports wireless operator services.

Norstan worked with Rice Memorial to aid in their goal of using wireless telecommunications as a means to improve patient care. The Foxcom ModuLite(TM) multi-service platform used in the solution enables seamless patient and staff communications utilizing multiple manufacturers' WLAN access points, various wireless voice over IP handsets, and any local wireless operator's cellular services. These wireless services and mobile applications allow the hospital's medical staff to be mobile throughout their multi-building facility and across the community, yet maintain voice and data contact directly over various wireless handsets with fellow staff members and patients.

The Rice Memorial solution was designed with attention to future expansions and potential improvements. The Modulite "Wire It Once" design and modular approach enables the addition of new voice and data services without further cabling or wireless infrastructure changes, minimizing costly moves, adds and changes, and the repeated disruption in patients' rooms and in staff areas. Rice Memorial plans to leverage the multi-service mobile network to implement and access future wireless voice and data applications, providing continued improvements in patient care, both at the bedside and throughout the facility.

"This system has greatly enhanced communication for our hospital staff," states Jon Barber, telecommunications coordinator for Rice Memorial Hospital. "It enables mobility, which allows us to be fully responsive to out patients' needs and to exchange information with colleagues and support staff, no matter where we are on hospital grounds. This flexibility creates a more effective working environment, and therefore, higher quality patient care."

"This is a significant milestone for in-building wireless voice," said Larry J. Schmidt, executive vice president of Norstan's Communications Technology Direct Solutions. "We are proud to provide Rice Memorial a wireless solution which not only improves their communication service but also allows them to improve their business - caring for patients."

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 centers, messaging, infrastructure, conferencing and mobility. Headquartered in suburban Minneapolis, Norstan, a company small enough to care, yet big enough to serve, has offices located throughout North America. To learn more, visit the Norstan website at www.norstan.com.

About Foxcom Wireless

Foxcom Wireless is a leading designer and manufacturer of converged wireless indoor networks for major corporate enterprises and wireless service providers. Foxcom Wireless' fiber optic products enable seamless and reliable wireless coverage in such locations as corporate campuses, hospitals, universities, manufacturing plants and airports. By serving large segments of users through dedicated converged wireless indoor networks, Foxcom Wireless systems relieve macro system loads and enhance existing cell coverage, and offer superior wireless service with fewer antennas and base stations.

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, the integration of regulation, management of growth, the 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 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.

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.