LG-Nortel ipLDK-60 IP-Enabled Key System Simplifies Business Communications

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June 18, 2009

SEOUL - Small and medium businesses in North America, Latin America and Caribbean regions can now benefit from the easy integration, powerful call and cost control features and data network integration of the 

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Designed to simplify the provision of powerful telecommunications capabilities to even the smallest office, the LG-Nortel ipLDK-60 IP-Enabled Key System reduces branch office costs by eliminating the need for a separate PBX for call handling. Robust call switching on the key system enables direct call control, with support for both ISDN and IP telephony providing significant reductions in branch office communications costs.

Because it is built on the rich telephony experience of LG-Nortel, the ipLDK-60 allows companies with limited budgets to migrate towards a fully converged voice and data environment that can be easily extended in the future as business requirements change.

"Small and medium businesses face the same communications challenges as large companies, but the pressures of the current economic situation may prevent them from implementing comparable solutions," said JD An, vice president, Enterprise Solutions, LG-Nortel. "With IP telephony now the gold standard in communications solutions, the LG-Nortel ipLDK-60 IP-Enabled Key System provides a robust, secure voice and data solution that simplifies the move to a converged environment while offering a clear path to next-generation IP-based communications."

To penetrate these markets and broaden its base of Latin American resellers, LG-Nortel will leverage the expertise of major distributors in the region to ease the distribution path to emerging Caribbean and Latin America markets. Anixter Latin America with highly successful business operations specializing in distribution and value-added services is well positioned to increase LG-Nortel sales to small and midsize enterprises. This addition to the LG-Nortel distribution model will reduce the ipLDK-60 delivery lead times while maintaining price competitiveness. "Anixter is pleased to be LG-Nortel's regional distribution partner in Latin America. Anixter provides top notch service built upon continuously adding value in the supply chain of its customers and suppliers," said Scott VanWagner, VP of Marketing, Latin America, Anixter.

The LG-Nortel ipLDK-60 features a broad range of key system functionality including Line Appearances, Call Park, Page and Call Pick-Up, as well as cost control capabilities such as prepaid call, barge-in, forced trunk disconnect, LCR, and more. Already enjoying strong popularity since its launch in Brazil, the ipLDK-60 is backed by LG-Nortel with 30 days of "free" phone support for system installation.

About LG-Nortel

LG-Nortel is a joint venture of LG Electronics and Nortel. Established in 2005, LG-Nortel provides leading edge telecommunications equipment and network solutions, spanning wired and wireless technologies, to service provider and enterprise customers in Korea and around the world. LG-Nortel is also actively developing next generation solutions for global markets, with over 750 skilled R&D engineers currently focused on wireless broadband technology evolution and the development of powerful new product lines. For more information on LG-Nortel, visitwww.lg-nortel.com.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Our next-generation technologies,  for both service providers and enterprises,  span access and core networks, support multimedia and business-critical applications, and help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web atwww.nortel.com. For the latest Nortel news, visitwww.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. LG-Nortel and the LG-Nortel logo are trademarks of LG-Nortel.

Contacts for Press and Analysts:

Bohyun Kim  
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kimvo@lg-nortel.com

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