IP Powered Business Communication Services

Reaching Out to Corporate and SMBs with New Centrex IP and SIP Multimedia Services

ISTANBUL, TURKEY--(MARKET WIRE)--Oct 9, 2008 -- Turk Telekom has selected a Nortel(1) (Toronto:NT.TO - News)(NT - News) IP Powered Business communications solution to unlock opportunities for new service revenue by providing carrier-grade voice and multimedia services to businesses and consumers throughout Turkey. The new solution enables Turk Telekom to deliver Centrex IP and SIP multimedia services to corporate customers and small to medium-sized businesses (SMBs) without having to invest in new infrastructure.

Building on its long-term relationship with Turk Telekom, which includes its next-generation network (NGN) international gateway deployed in 2003, Nortel is now expanding its cooperation with Turkey's number one carrier to include delivery of SIP applications for corporations and SMBs.

"Our relationship with Turk Telekom spans four decades during which Nortel has consistently proven its ability to design, deploy, and support some of the world's most reliable networks," said C. Mujdat Altay, president, Nortel Netas. "With its latest IP powered services deployment, Turk Telekom's corporate customers will be able to benefit from the latest VoIP and multimedia technology via wireless or wireline networks according to their unique needs. As fixed-line and mobile calls are managed by the same network, Turk Telekom can offer simple and more affordable services that will increase personal productivity and allow more focus on their business."

Nortel's VoIP Infrastructure solutions, products and services deliver fully-featured, carrier-grade telephony, data and multimedia services over multi-service packet networks. The customized VoIP solution for Turk Telekom is based on the Nortel Communication Server (CS) 2000, the market leading IP Multimedia softswitch that supports a wide range of voice and multimedia business features and industry-standard VoIP protocols. Due to its strategic architecture including consolidated local, tandem and long distance capabilities the Nortel solution enables Turk Telekom to cost-effectively transition to an IP network, without needing to invest in overlay solutions. It also provides a comprehensive, expandable voice feature set for residential and business customers and the ability to reduce operational expense by up to 30 percent and capital expense by up to 50 percent.

The end-to-end solution also includes customer premise equipment (CPE) for end users, including Nortel SIP phones and the Nortel Business Services Gateway (BSG). The BSG is an advanced SMB router which integrates in one box routing, switching, mobility, security, quality of service (QoS) and SIP gateway capabilities for voice and data services. These new capabilities include SIP Mobility extensions to integrate Turk Telekom's GSM and hosted VoIP environments.

This Mobile Extension service gives workers the ability to connect mobile phones into their company's corporate network allowing business travelers to use the same phone functionality and services such as short dialing and single voicemail wherever they are, whether they are on their mobile or desk phone. Services from Nortel's Global Services portfolio such as service development support for click-to-call functionality are also included in the solution for Turk Telekom.

Nortel provides VoIP and multimedia solutions to many of the world's leading service providers, including Bell Canada, Rogers Communications, SaskTel, Telus, Verizon, Embarq, Verizon Business, British Telecom, Cable & Wireless and Neuf Cegetel. According to Dell'Oro Group, Nortel is the worldwide leader in carrier VoIP and has maintained that position for the last six years (2002-2007). Also, Gartner positions Nortel in the enviable Leader's quadrant of its Magic Quadrant (MQ) for Softswitch Architecture, 2008. Nortel has deployed over seven million SIP lines and has shipped more than 95 million carrier VoIP ports to more than 300 carriers globally.

About Nortel

Nortel is a recognized leader in delivering 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. Nortel does business in more than 150 countries around the world. 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.

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Turk Telekom has been presenting the contemporary communication media to its customers with excitement since 1840.

Turk Telekom is the Europe’s 5th and the world’s 13th largest fixed telephone operator with its strong substructure, its increasing and diversifying value-added services, its capacity to rapidly reflect the continuously changing and developing technological opportunities on its services, its more than 40 thousand employees, its branch network of ten thousands, its business partners and service providers. This enormous institution of Turkey is the single example in the world which provides fixed telephone, mobile telephone, data and internet services altogether to its customers.

Today’s Turk Telekom, which had been founded as “Postahane-i Amirane” in 1840, has built the first manual telephone exchange with 50 lines in the Big Post Office of Istanbul in 1909, and has found its contemporary identity today by keeping pace with the time’s technological improvements during every period since 1840.

Being the leader of the market with its capability to perceive customer expectations, its knowledge, and its entrepreneurial and competitive identity, Turk Telekom had witnessed one of the most important developments in its history when Oger Telecom had purchased 55% of Turk Telekom shares after its privatization in 2005. The broadcasting corporation called “Acquisition Monthly” on which the international investors keeping close tabs had awarded the privatization regarding the block sale of Turk Telekom as the “transaction of the year in developing markets” with respect to mergers and acquisitions. This union has also brought the company international standards in service mentality.

Turk Telekom group provides integrated telecommunication services from PSTN, GSM to wide band internet. Turk Telekom group companies have 17,8 millions of PSTN customers, 5,2 millions of ADSL customers and 11 million GSM customers as of June 30th, 2008. With its modern network substructure, covering the whole country, the group companies offers a wide range of services to its personal and corporate customers. Turk Telekom, who is the owner of the 99,9% of shares of the companies TTNET, Argela, Innova, Sebit A.Ş. and AssisTT, is also the owner of 81% of the shares of Avea, which is one of the three GSM operators in Turkey. Turk Telekom also supports Albtelecom in Albania. The 55% of the shares of Turk Telekom belongs to Oger Telekomünikasyon A.Ş. and the 30% of the shares belongs to Undersecretariat of Treasure of Turkey. The remaining 15% of shares has been offered to public. Turk Telekom shares has been operated on through IMKB since May 2008.