1 Nortel Confidential Information

IP Telephony 1-2-3: An introduction to the IPT 1-2-3 Marketing Programs

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What is IPT 1-2-3?

> IPT 1-2-3 is a suite of marketing programs that will take current Non-IP Nortel Systems (e.g. M1, MerMail) to IP

> IPT 1-2-3 can bring you to where you need to be• Dabble with IP• Use IP only for Management• IP handsets• VoWLAN-IP• Converged Network• Converged Applications

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IPT 1-2-3 Promotions > Two promotions to support the IPT 1-2-3 Initiative (> IPT Package Promotion

Effective July 31, 2006 – February 28, 2007 or CS 1000 Release 5.0 GA • 4 Simplified upgrade bundles• Incentives for IP and CallPilot systems (new or migrations)

> Get One Free (Second Half 2006 Offers) CS 1000 and IP: Effective July 10 – December 8, 2006 CallPilot Migration: Effective July 10 – June 29, 2007

• Waive SRS transition fee; added incentives for IP and Meridian Mail to CallPilot Migrations

Requirement Get One Free IncentiveUpgrade to CS 1000 R4.5 and minimum 2-year CS 1000 SRS contract • SRS Transition Fee waived

Transition to IP with CS 1000 Upgrades • Buy 40 IP Phones, Get One Free Media Card

Meridian Mail to CallPilot Migration • Buy one voicemail seat, Get One Free• Get 20 Free Desktop and 20 Free Fax Seats

Requirement IPT Package IncentiveIPT Package Upgrade to CS 1000 Release 4.5 •Four simplified and discounted upgrade bundles

Transition to IP with CS 1000 Upgrades • Buy 40 IP Phones, receive a Free Media Card

CallPilot System (New or Meridian Mail migration)• Buy one voicemail seat, receive one free (must be purchased in

increments of 100)• Receive 20 Free Desktop and 20 Free Fax Seats

Notes:1. The IPT Package and Get One Free SRS Transition Fee Waiver offers can be combined.2. The Get One Free and IPT Package free media card offers cannot be combined.

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Packages Target customers

>Not ready to move voice equipment into data center

>Seeking to keep cabinet and existing equipment location

>Seeking to keep existing line cards and chassis

>Considering VoIP

>Ready to move voice equipment into the data center

>Strongly considering VoIP

>Seeking new IP PBX and potentially a desktop refresh

>Ready to move voice equipment into the data center

>Strongly considering VoIP

>Seeking new IP PBX and potentially a desktop refresh

>Not ready to move voice equipment into data center

>Seeking to keep cabinet and existing equipment location

>Seeking to keep existing line cards and chassis

>Considering VoIP

4 Upgrade to IP Packages for a Broad Range of Needs

Who is eligible

>Option 11E wall mount systems

>0-500 lines

>Option 11 and 21 rack mount systems

>0-500 lines

>Option 21,51 and 61 rack mount systems

>500 plus lines

>Option 61 cabinet mount systems

>500-1,500 lines

IPT Medium Package-Rack

IPT Large Package-Rack

IPT Large Package-Cabinet

IPT Medium Package-Wall

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Other New Promotions> Wireless LAN (WLAN) Starter Bundles (Voice and Data)

• Effective July 3 – December 29, 2006• To add mobility to BCM or CS 1000 systems• Rebates of up to $1,000 per bundle

> Multimedia Discovery Bundles • July 10, 2006 – June 29, 2007• To allow customers to try our new Contact Center 6.0 Outbound and Multimedia

features• 100% off with purchase of a new CS 1000/Meridian 1 and CCM 6• 50% off for installed switch customers adding a new CCM 6.0

> Norstar to BCM upgrade rebates• Effective July 3 through December 29, 2006

Upgrade/Migration IncentiveUpgrade to BCM 4.0

Norstar to BCM Migration

BCM: US $250 – US $300

US $450. US $900 or US $1800,depending on BCM configuration

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New Aggressive Financing“Invest Now, Pay Later”

> 90-180 Days free financing. No payments until 2007!• Reduces significantly the cost and risk of

migration to VoIP • Overcomes 2006 budget constraints• Increases VoIP ROI

> Fair Market Value lease option may qualify for off balance sheet treatment as an operating lease

> Requirements• 36 Month Lease• $30K Minimum qualifying purchase• Credit approval

> Available July 17-December 8, 2006

“No payments and no interest” for deferral period Best available financing deal in marketplace

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What Next?

> See www.nortel.com/ipt123

>Attend Nortel Event at Dodger Stadium 1 Week from Today: http://www.nortel.com/corporate/events/2005c/bss_seminars/western.html

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