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FAIRFAX, VIRGINIA--(Marketwire - Sept. 25, 2009) - [ Nortel Government Solutions ] (NGS), a U.S. company wholly owned by Nortel(1) (OTCBB:NRTLQ), announced today that the National Oceanic and Atmospheric Administration (NOAA) has selected NGS as a prime contractor on the Instrument Processing Engineering Support –III (IPES-III) contract. Through the IPES contract, NGS will provide a wide array of IT support services to the Office of Systems Development (OSD) Ground Systems Division (GSD) of the NOAA Environmental Satellite, Data, and Information Service (NESDIS). The contract's period of performance is August 10^th 2009 - August 9^th 2012. The estimated value is $5.0M.

As part of the IPES contract, NGS, along with sub-contractors Integral Systems, Inc. and Carr Astronautics will provide NESDIS OSD with highly specialized support and expertise associated with the design and development of end-to-end solutions for the current series of the Geostationary Operational Environmental Satellite (GOES) ground system components. These systems are critical for the continuity of the GOES constellation and vital for predicting and tracking the formation of hurricanes. This contract provides multi-faceted support and an architectural upgrade to ensure the evolution and enhancement of NOAA's NESDIS operational weather forecasting capabilities.

"NGS has provided mission-critical systems support to NOAA since 2001," said Chuck Saffell, CEO of Nortel Government Solutions. "We are proud of the high-caliber scientific and technical support we have provided to NOAA over the years and are convinced that the re-architecting of the GOES system will provide operational, maintenance, and reliability dividends for NOAA while reducing maintenance costs in the future."

The NGS-proposed architecture to be implemented under the IPES-III contract significantly reduces ground system life-cycle costs, improves future standardization between component systems, standardizes operation and maintenance of operational ground equipment, enhances IT security, and provides continuity of operation for GOES satellites.

It also reduces the system's footprint and power requirements and will enable the performance of hardware or software upgrades without incurring long system downtimes.

About Nortel Government Solutions

Nortel Government Solutions is a network-centric integrator, providing the services expertise, mission-critical systems and secure communications that empower government to ensure the security, livelihood, and well being of its citizens. Headquartered in Fairfax, Va., Nortel Government Solutions offers a one-stop shop for solutions designed to improve workforce productivity, reduce operating costs, and streamline inter-agency communications. Please visit [ www.nortelgov.com ] for more information.

About Nortel

Nortel delivers communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. For more information, visit Nortel on the Web at [ www.nortel.com ]. For the latest Nortel news, visit [ www.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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. Nortel Government Solutions and the Nortel Government Solutions logo are trademarks of Nortel Government Solutions Incorporated.