Nortel SMB Solutions Update BCM 450 SCS

Nortel SMB Solutions Update BCM 450 & SCS 500 BUSINESS MADE SIMPLE

Introduction Today’s SMB Realities • Mobility • 2/3 of SMB workers travel for business • 30% say that mobile policies are a priority • Dispersed Workplace • 27% of SMBs have multiple locations • 35% of SMBs have telecommuters • Employee Satisfaction • Attracting, developing and retaining talent are major challenges • Efficiency & Productivity • Managing cash flow and reducing costs are among the top decision criteria • Technological Expertise • Limited IT resources available to deploy and support new technology Source: IDC, Yankee Group 3 Nortel Confidential

What Do SMBs Need? Productivity Flexibility • How can it make my employees more mobile, accessible, etc. ? • How can it optimize my business processes? • Can it make me more money? • Will it grow and adapt to my changing business challenges? • Everything changes so quickly these days, what about technology obsolescence? Efficiency • Do I need a PHD to manage it? • What are the key features and applications? • How intuitive are they to use? SMB Cost Savings • How does this reduce my communication costs? • Can it save me money in other ways? • Can it save me time? SMBs are looking for flexible and efficient communications solutions from trusted providers that enable employee productivity and save them money. 4 Nortel Confidential

Introduction SMB Solution Criteria • Compatibility • Will it work with the investments I’ve already made? • Flexibility • Will it grow and adapt to my changing business challenges? • Efficiency • Will it stretch my dollar farther? Will it allow me to generate more revenue? • Familiarity • Do you understand resource constrained companies like mine? SMBs have similar business challenges and requirements as large enterprises, but have fewer IT resources. Source: Four Important Questions for Technology Providers to Answer for SMB Market Credibility, Gartner, Nov 2006 5 Nortel Confidential

Nortel BCM 450 Solution NDA Overview • Business Element Manager • Network Configuration Manager • Standards-Compliant • Single Source Solution • Specially designed for SMBs • Business Communications Manager • Extensive Telephony Feature Set • Integrated Business Applications • Advanced Networking • Embedded Security • Vo. IP Quality of Service • High Speed Data Transfer • Secure Internet Access • Hosted or Managed Services • Full Feature & Application Support • Easy to Set Up and Program • IP or Digital Desktop Phones • IP or Digital Mobile Phones • Conference Phones & Soft Clients • Nortel Data Portfolio • SMB -BES, BSR, BAP, BSG • Enterprise Data Portfolio • Vo. IP Quality of Service • Power over Ethernet Innovative, easy to use, and affordable IP communications designed with the unique challenges of SMBs in mind. 6 Nortel Confidential

BCM is the Total SMB Branch Office Solution “Independent or Centralized” Meridian/CS 1000 E Networked Site 1 N CD M Applications -Call Pilot -- IVR - Call Center - CDR - Fax Mail - Unified Messaging External Apps I /PR PSTN e Voic IP WAN /IP DN MC BCM 450 CTI Server PC Console PCM Desktop Assistant Pro 3 rd Parties ISP IP WAN Vo. IP/D PSTN ata IP WAN LAN BCM 50 e with BES 50 IP Phone 1230 Remote/ Telecommute BSR 222 IP Phone 1230 2050 v 2 7 Centralized Application s Wireless LAN 2050 v 2 Nortel Confidential LAN 2004 2050 v 2 Networked Site 2

BCM 450 & BCM 50 e for SMB’s Branch Office, Work at Home / Road Warrior, Centralized Management BCM 50 e Branch with BCM 450 Main Site Nortel BES 50 -24 T POE Switch IP WAN BSR 222 Tunneled Nortel Ethernet POE Switch Remote User Uses Nortel VPN Client IP Phone 1230 Business Element Manager • • 8 Manages all Nortel’s SMB Voice & Data products Configure Branch devices on Customer LAN from Central site Nortel Confidential Remote Location

NDA BCM 450 Overview What is the BCM 450? • BCM 450 is a NEW model being added to the BCM portfolio that expands the BCM addressable market up to 300 total users, Digital or IP. • BCM 450 provides a scalable migration path for the underserved Norstar MICS customer base, and opens up incremental business growth opportunities. • Target market is midsize SMBs with 30 -250 employees. New product to drive Norstar migration and new business. Note: BCM 450 is not directly targeted at the BCM installed base; this will be addressed in a follow-on release. 9 Nortel Confidential

NDA BCM 450 Overview Content Summary Capacity Improvements 1 Up to 300 total users: max 300 Digital / 300 IP / 48 Analog with Capacity Expansion Card (CEC) Up to 120 Ad-Hoc or Meet-Me Conference Ports (keycode required), 8 Fax ports, with CEC (expansion card) Base BCM 450 model supports up to 100 Stations, 60 Conference Ports or Meet-Me Conference Ports (keycode required), 4 Fax ports Operability Improvements 2 BEM – Automated Renumbering, Set Templates Other – System Reset, Troubleshooting guide, Reboot optimization, Documentation suite Platform Simplification 3 Base Function Tray (BFT), Chassis Interface Board (CIB), Capacity Expansion Card (CEC) Feature Parity with BCM 50 R 3, including: 4 10 Conferencing – Meet-Me Conferencing: flexible, easy to use, secure, scalable IP – 1200 Series IP Phone, 1110 IP Phone, 1100 Key Expansion Module (KEM) SIP – Native SIP Trunking enhancements for interworking with other systems Contact Center – New APIs, features, reporting engine, installation utility Nortel Confidential

BCM 450 Value Proposition > Customers Compatibility Efficiency • Norstar customers can keep their phones, fiber trunk and station modules. • BCM customers can retain their phones, MBM's, expansion cabinet, and most of their software investment. • No user training required; base telephony features and user interface remain the same. • All the benefits of Vo. IP: toll savings, easier setup, improved portability, call features. • New enhancements improve installability, usability and supportability. • Simplified platform with high quality and reliable hardware reduces lifecycle costs. Flexibility Familiarity • Flexibility to add capacity or deploy new features with the optional field installable CEC and easy to enable keycodes. • Elegantly scales up to 300 total users with any mix of digital or IP phones. • Same software as BCM 50 R 3 for full feature parity and interoperability. • Nortel has 20 years experience in SMB with Norstar and the award-winning BCM. • Nearly 200 K BCM systems sold worldwide. • 15 million SMB clients in over 80 countries. • Affordable, easy to use solutions designed specifically for SMBs. 11 Nortel Confidential

NDA BCM 450 Capacity Improvements Summary BCM 400 BCM 450 w/ CEC IP Stations Digital Stations Analog Stations 80 192 48 100 48 300 48 H. 323 or SIP Trunks 60 48 130 T 1 Digital Trunks E 1 Digital Trunks Analog Trunks 72 90 80 48 60 48 130 80 T 1 Interfaces 3 2 6** 3 4 40 200 2 1 4/10* 1 2 16 60 400 300 4 1 4/10* 1 5** 16 120 400 300 8 1 4/10* 1 E 1 Interfaces BRI Loops Conference Ports Voicemail Hours UM Seats Fax Ports Expansion Cabinet MBM’s FEM’s • Comprehensive ‘across the board’ increase in capacity • Stations, Trunks, Interfaces, Ports, Storage Memory • Modular design approach using the CEC. • Key Benefits: • • Scalability Flexibility Affordability Simplicity * Without/With Expansion Cabinet. ** Last T 1/E 1 not fully loaded since maximum trunk channels is 130. Above specifications include Expansion Cabinet where needed and no FEM connected. Total stations/trunks of any type not to exceed 300/130. Nortel Confidential 12

NDA BCM 450 Operability Improvements Business Element Manager (BEM) • New Capabilities at a glance: • Flexible Resource Allocation • Automated Renumbering • Set Templates • Key Benefits: • Flexible configuration • Faster system start-up • Easier ongoing administration System set up time up to 25% faster than BCM 400 R 4. 13 Nortel Confidential

NDA BCM 450 Operability Improvements Automated Renumbering • Automated Renumbering of: • Device Numbers (DNs) • Outgoing Line Identification (OLI) • Target Line Assignments Sample Task: Renumber range of existing DNs: Existing DN range: 221 -232 Required DN range: 521 -532 • Public/Private Received Digits • Set Name • Applicable for initial installation and ongoing management • Replaces BCM DN Renumber wizard Significant time savings due to bulk provisioning of incremental parameters. 14 Nortel Confidential

NDA BCM 450 Operability Improvements Set Templates • Bulk provisioning of sets with similar characteristics using templates: • Generic or set type-specific to support buttons programming • Created offline and then propagated to selected DNs • Easy to create library of templates and reuse across BCMs • Included in back up and restore as an additional component • Simplifies Moves/Adds/Changes • Export Templates (via USB), for use with other deployments. Simplified phones provisioning using templates. 15 Nortel Confidential

BCM 450 Operability Improvements System Reset, Troubleshooting and Reboot • System Reset • Restores factory software image using a reset button instead of the BIT tool. With BCM 50 R 3, this procedure requires a manual sequence of button pushes as LED’s flash. • With BCM 450, one simply presses the Reset button to generate a CLI 1 prompt, with options to choose L 1/L 2 reset for a smoother operation. • Troubleshooting Guide • Comprehensive document with task-based procedures to troubleshoot operational issues on a BCM system, including emergency recovery tree procedures for outage recovery. • Reboot Optimization • Reboot time savings compared to BCM 50 R 3 and BCM 400 R 4 as a result of architectural improvements, reducing down time by facilitating faster start up and system maintenance. 16 1. Command Line Interface Nortel Confidential

NDA BCM 450 Operability Improvements Documentation Suite • Converting five core documents to the Nortel MTBI 1 standard: • • • Administration Guide Device Configuration Guide Installation and Maintenance Guide Networking Configuration Guide Telephony Device Installation Guide • Also adding nine new MTBI-based guides • User Benefits: • Clear, easy-to-follow procedures • Supports the needs of different functions • Consistent look & feel MTBI compliance ultimately yields time savings and greater accuracy in executing procedures. 1. Modular Task-Based Information 17 Nortel Confidential

NDA Silent Record-A-Call Ported from BCM 50 R 3 (cont. ) Any user on the system has the ability silently record a call that he/she is on. While on the call he/she can simply enter a Feature code (or press a programmed key) and enable a Silent Record a Call session. The call is then recorded with no audible notification that it is being recorded. NOTE: If you use Record A Call, selecting Announced or Silent, you have the option of storing the recorded call in your personal mailbox, the skillset mailbox, another (specific) mailbox in the system, and/or a network (SFTP) location as a. wav file. The destination of the recorded call is chosen on the Add Agent page. When a system administrator defines an SFTP destination folder as a storage location on the network, these storage locations must be on an SCP server. Record A Call cannot be used on Conference calls (Ad-Hoc or MMC). This feature is class of service enabled, therefore, it can be assigned to the appropriate users as required. Users may listen or forward messages on their set, but in order to archive the message or save as a. wav files for attaching to an e-mail message, Unified Messaging must be used. Intelligent Contact Center Agent and Supervisor can also silent record a call. The recorded call is left in the agents/supervisors mailbox or skillset mailbox. The feature does not provide the ability for a Supervisor to trigger “silent” call recording while listening in on an agent’s call. 18 Nortel Confidential

NDA BCM 450 Business Applications Meet-Me Conferencing (MMC) • BCM 450 supports multi-party conferencing; both unplanned (Ad-Hoc) or via a specified bridge number at an agreed-upon time (Meet-Me). • MMC, introduced with BCM 50 R 3, provides a solution that is: • Easy to use – Reservationless; convenient display/softkey commands via two line display sets • Flexible – universal access anywhere, anytime • Secure – password enabled; chairperson controls • Scalable – up to 120 simultaneous participants Note: 1 Integrated conferencing for effective business meetings. 19 1. Using the Capacity Expansion Card (CEC). Nortel Confidential

NDA BCM 450 Business Applications Intelligent Contact Center (ICC) • Enables SMBs to increase customer satisfaction and business productivity by directing clients to the right person quickly and efficiently. • Customers can order any # of agents or skillsets, as well as advanced reporting and multimedia applications. • ICC enhancements introduced with BCM 50 R 3: • New APIs 1 – enable integration with other applications • New Features – flexible configuration / management options • Reporting – faster and more reliable database engine • Install Verification Utility (IVU) – reporting setup tool Integrated Contact Center with big business capabilities. 1. Application Protocol Interfaces 20 Nortel Confidential

NDA BCM 450 Business Applications Unified Messaging (UM) • Converges or ‘unifies’ all voice, fax and email messages onto a single email application. • Allows users to conveniently manage their entire inbox, review messages off-line, and archive messages to their computers. • BCM 50 R 3 introduced the ability to launch an Instant Messaging (IM) session directly from a voice or email message. • Unified Messaging “Message Forward Rule” Patch for Blackberry notification will be released after BCM 450 GA date Integrated messaging capability that enables users to better manage their communications environment. 21 Nortel Confidential

NDA BCM 450 Business Applications Other Integrated Applications • Automated Attendant • Answers calls 24/7 with personalized greeting and intelligent routing. • Computer Telephony Integration (CTI) • Enables PC-based applications to control telephone services, such as a ‘click-to-call’ directory or screen ‘pop-ups’ of a customer’s account status during a call. • Activity Reporter • Provides Basic (on-box) and Standard (requires client software to be loaded on customer PC), customizable reporting on telephony and related metrics. • Advanced Paging Productivity (APP) Pack • Available in North America only. • Suite of Advanced Paging and Text-messaging applications to improve productivity, customer service and optimize business processes. 22 Nortel Confidential

Advanced Paging Productivity Pack Solution Overview >Advanced Paging >One Button Paging Productivity Pack >One Button Text Messaging >Pre-recorded announcements >Programmed on IP or digital Sets >Press and sends to appropriate paging zone >Pre-programmed messages >Programmed on IP/Digital sets >Press & sends to another IP / Digital set (mobile/stationary) >Recipient can respond Y/N > Full Featured, Advanced Paging application > Supported on latest versions of BCM 50/200/400 >APP Pack Authcode required >Customer Assistance Paging >“Press Here” >Delivers page >Employee resets device 23 >Centralized / Remote administration & management >Comprehensive tracking & reporting via BCM Nortel Confidential >Scheduled Announcements >Pre-recorded announcements >Specify time/zone >Automated distribution across all stores using NCM

BCM 450 Client Support NDA Industry Leading Portfolio • Nortel has some of the most advanced phones in the market. • Digital or IP; Wired or Wireless • Ongoing portfolio evolution with the SMB-optimized 1200 Series IP Phone, T 7406 E 1 and WLAN 6120/6140. • Evergreen strategy allows Norstar customers to continue using their digital handsets on BCM as they evolve to IP telephony. Superior breadth, feature integration and investment protection. 24 Nortel Confidential

NDA 1200 Series IP Phones Overview Capabilities Customer Value Feature Rich - Multiple softkeys, IP desktop offering optimized for SMB values, cost effective Efficient - Integrated Ethernet Cost/equipment savings, less time to install/support 2 -way speakerphone, headset support IP Phone 1210 Standard-Level IP Phone 1230 switch for single drop desktop wiring with Po. E Premium Intermediate-Level Converged - Unified voice and data infrastructure Single supplier/support, reduces cost and maintenance complexity Simple - Feature keys are pre- Simple and easy to use, increased productivity Sophisticated - Customizable to Can be tailored for specific activities and/or advanced users programmed with most common SMB features access 400+ BCM features IP Phone 1220 Key Expansion Modules Intermediate-Level 12 -Key LCD or 18 -Key LED Simple yet sophisticated new IP phones for SMBs. 25 Nortel Confidential

NDA Business Series Terminal T 7406 E Overview • The T 7406 E is a sleek new cordless digital phone designed for SMBs. • Available only in North America, Mexico and the Caribbean (except Trinidad and Jamaica). • Supports 1 -8 users per site with a usable range of ~1, 000 feet from the base station. • Compatible with Norstar and BCM, this fullfeatured handset is easy to setup and priced for value. • Business benefits: • Increased productivity • Employee satisfaction • Improved customer service • Collaboration • Reduced costs Integrated, easy to use, and affordable workplace mobility solution. 26 Nortel Confidential

NDA BCM 450 Vo. IP Networking SIP Trunking • In addition to H. 323, BCM 450 supports the SIP 1 signaling standard to enable Vo. IP communication with other systems, extend partnerships with third party vendors, and allow service providers to develop new converged offerings. • SIP enhancements introduced with BCM 50 R 3: • • • Interoperability – RFC 2833 support for DTMF signaling Security – standards based authentication, privacy protection Reliability – proxy failover mechanism for load balancing Simplicity – domain names vs. IP addresses for configuration Flexibility – optional G. 711 codec for faster fax transmission SIP compliance expands the BCM development community and allows greater interoperability. 1. Session Initiation Protocol 27 Nortel Confidential

NDA Other New Capabilities on BCM 450 BCM “Value Add” Content Stream • WLAN Handset 6120/6140 Support • Full-featured, state-of-the-art handsets extend mobility options on BCM. Include support for 802. 11 a/b/g radios for flexibility, larger graphical display, updated styling, updated UI with navigation key and longer battery life. • SRTP-PSK for Nortel IP Phones • Support for media stream encryption using SRTP-PSK 1 between Nortel IP Phones. Increases security and ensures privacy of Vo. IP conversations. • Business Element Manager MAC Privilege • Simplifies Moves, Adds & Changes (MAC) and adds administrative flexibility for both customers and service providers. • Network Configuration Manager Enhancements • Improvements in software quality to make it more intuitive and user-friendly. Primary focus areas are NCM Wizard functionality and user interface. Continued investment in high value capabilities on BCM. 1) Secure Real-time Transport Protocol using Pre-Shared Keys. For more information please see bulletin SM-2008 -0066 -Global on PIC. 28 Nortel Confidential

NDA BCM 50 R 3 Software Parity Summary • New 1200 Series IP Phone support • 1110 IP Phone, 1100 Key Expansion Module (KEM) • 6120/6140 WLAN Handset Support • Meet-Me Conferencing (MMC) • SIP Trunking Enhancements & Carrier Interoperability • Contact Center Enhancements – New API’s • Advanced Paging Productivity Pack • USB Port Support 2. 0 • IP Set Media Encryption SRTP-PSK • Silent Record a Call • IP Music Enhancements • Business Element Manager MAC Privilege • BCM Client Support for Windows VISTA™ Operating System (OS). • Network Configuration Manager (NCM) 4. 0 RP 3 adds support for the BCM 450 R 1 product 29 Nortel Confidential

NDA BCM 450 R 1 and BCM 400 R 4 Deltas • BCM 450 supports BCM 400 Power supplies and Cooling fan redundancy options • V. 92 hard modem is replaced by V. 34 soft modem • BCM 400 4. 0 items not supported on BCM 450 1. 0 • Integrated Router • Firewall • Integrated IP Sec functionality • VPN Client support • Interactive Voice Response (IVR) (Future Capability) • Survivable Remote Gateway (SRG) – (SRG functionality is not supported). • RAID hard drive redundancy (Future Capability) • Factory Installed Redundant Power Supply (Field Installable Option) • Digital Drop & Insert MUX (DDIM) MBM • Power-On-Self-Test (POST) Logging 30 Nortel Confidential

NDA What Stays the Same as BCM 400 • Intelligent Contact Center supports 80 active and 250 configured Agents and 50 Skillsets, the same as BCM 200/400 • Only one music source is supported, the same as BCM 50/200/400/1000 • The number of paging zones is 6, the same as BCM 200/400/1000 • LAN CTE Connections is 256, the same as BCM 200/400/1000 31 Nortel Confidential

NDA BCM 450 Platform Simplification 32 Nortel Confidential

NDA Hardware Overview Optional CEC Capacity Expansion Card Install in CEC SLOT 3 Reset Button BCM 450 R 1 Base Function Tray -Power -Status LED OAM (10/100) port HD cover 33 2 X -Music HD/RAID status USB 2. 0 -Paging -Page relay LED’s DS 256 -Aux interfaces Identification expansion Label Serial port connector -Maintenance CLI -Configuration CLI 2 X-10/100 Switched LAN ports Nortel Confidential

NDA BCM 450 Platform Simplification Base Function Tray (BFT) Capacity Expansion Card (CEC) Base Function Tray (BFT) 34 Nortel Confidential

NDA BCM 450 Expansion Cabinet • The existing BCM 400/1000 expansion cabinet is supported • It now requires an authorization code, similar to BCM 50 • NTC 01073 KC - BCM 450 Expansion 1 Port Paper Authorization License • NTC 02026 KC - BCM 450 Expansion 1 Port Electronic Authorization License • Only one Expansion Cabinet is supported • While the number of MBM slots has not changed from BCM 400, however with the removal of “resource” constraints, all ten MBM slots can now be populated up to the published station and trunk limits. TDM Example Configurations: 3 - PRI with 224 Digital Sets OR 4 - PRI with 192 Digital Sets Total Trunks/Stations of any type not to exceed 130/300. Note: Additional IP sets up to 300 set max. 35 Nortel Confidential

NDA Hardware Overview USB Ports • Same devices supported as BCM 50 3. 0 • USB 2. 0 and 1. 1 compliant • Top port must be used for UPS • Bottom port is for USB storage devices. • Only 1 USB storage device may be used at a time Note: The BCM 450 will only use the first partition on the USB storage device. If there are multiple partitions on the USB storage device they will not be recognized and only the first partition will be used 36 Nortel Confidential

NDA BCM 450 Capacity Improvements Comparison to BCM 400 BCM 450 IP Stations 80 100 BCM 450 w/ CEC 300 Digital Stations 192 100 300 Analog Stations 16/48*/96** H. 323 or SIP Trunks 60 48 130 T 1 Digital Trunks 72 48 130 E 1 Digital Trunks 90 48 130 Analog Trunks 32/80* 32/48* 32/80* Analog Trunks (FEM) 32/80* 48/48* 96/130* T 1 Interfaces 3 2 6*** E 1 Interfaces 3 2 5*** Max 300 stations Total of all types Max 130 Trunks Total of all types *Without/With Expansion Cabinet **48 GASM & 48 FEM ASM ***Last T 1/E 1 not fully loaded 37 Nortel Confidential

NDA BCM 450 Capacity Improvements Comparison to BCM 400 BCM 450 BRI Loops 4 16 BCM 450 w/ CEC 16 Conference Ports 40 60 120 Voicemail Hours 200 400 UM Seats 200 300 2 32 32 1 4/10* 1 4200 4 31 35 1 4/10* 1 7200 8 55 63 1 4/10* 1 7200 Fax Ports Voice Mail Ports Total Application Ports Expansion Cabinet MBM’s FEM BHCC – No applications * Without/With Expansion Cabinet 38 Nortel Confidential

NDA Migration Path Norstar MICS to BCM 450 R 1 • Investment Protection for large Norstar MICS Customers • Replace the Norstar KSU with a new BCM 450 R 1 system • No database migration from Norstar to BCM 450 R 1 • All database must be re-entered on the BCM 450 • Existing Norstar Fiber Station and Trunk Modules can be reused • Existing Analog and Digital sets can be reused 39 Nortel Confidential

NDA Inter-working with Nortel Communication Servers BCM 450 1. 0 continues to provide inter-operability of SIP and H. 323 trunking with Nortel Communication Servers. The supported inter-operability is as follows: 40 Nortel Confidential

NDA Norstar M 7000 series phones on BCM • For full “feature” functionality, M 7000 series phones used on BCM must be at a minimum production release • Phones not meeting the minimum release may be still used with BCM, but not all features will be supported, for example: • The “Set Volume” feature is not supported • Only four levels of Display Contrast, instead of nine • The Busy Lamp Field (BLF) will not work on a M 7310 and M 7208 phones • The production release number can be found on a white label on the bottom of the M 7000 series phone M 7000 Series Phone Required Production Release M 7100 All Releases M 7208 Release 16 or higher M 7310 Release 16 or higher M 7324 Release 5 or higher M 7410 Release 3 or higher 41 Nortel Confidential

Nortel Software Communications System 500 (SCS 500) Release 2. 0 BUSINESS MADE SIMPLE

SCS 500 Target Customers • SMB organizations (30 – 500+ users per site, Single or Multiple sites) • Focused on IT / Integration of applications to enable highly collaborative employees • Knowledge workers &/or Mobile employees • Typically Dedicated IT headcount including a key technology decision maker (CIO) • “Earlier adopter” industries that view IT/Communications as competitive edge • Finance and insurance, business / professional services, manufacturing, media / entertainment / leisure, etc. 43 • “SMB Cluster Analysis and. Confidential Firms”, Merle Sandler and Ray Boggs, February 2008, IDC Nortel SMB 2. 0

What Does SCS 500 Provide? Productivity Flexibility • Integrates business processes and communications infrastructure: • Voice / Video / Presence / IM / Conferencing, UM • Microsoft and IBM integration • Dramatically improve employee collaboration • Open Source • Built on sip. Xecs from SIPfoundry. org • Nortel SCS / UC/ SIP Vision Efficiency Cost Savings • “Plug & Play” simplicity throughout… • Soft • Give employees the gift of time • Hard • Conferencing, Cell/Toll, Travel Avoidance • Highly Scalable • Positioned for 30 -500+ users but hardware agnostic • Installation, Configuration, Management, End-user experience • Application rich • ACD, AA/PAA, VM/UM, FM/FM, etc. SCS 500 is Nortel’s Unified Communications solution for SMBs, designed with flexibility and simplicity to improve productivity and save money. 44 Nortel Confidential

Unified Communications SCS 500: BUSINESS MADE SIMPLE for SMBs DELL IBM 4545 Nortel Confidential

What is SCS 500? Solution Components PSTN LG 6800 SERIES Gateways Nortel SCS 500 Server BES 50 Ethernet Switch FAX Session Border Controller BSR 222 VPN Router IP Network 46 46 IP PHONE 1535 Remote Workers SIP Trunking Desktop / Laptop Softphone and Plugins • Nortel Softphone 3455 • Nortel Softphone 3456 • IBM Lotus Sametime/ Lotus Notes Plug-in • Microsoft Outlook Plug-in Nortel Confidential *Available 2 H 2008

What is Software Communication System 500 (SCS 500)? Software and Server • The brains and core of the solution: • Dell Optiplex 755 server PRELOADED with SCS 500 software or IBM Power System with separately purchased software. • Media processing capabilities • Collaborate applications • Most telephony functionality • Voice and Unified Messaging • Automated Attendant (AA) • Automatic Call Distribution (ACD) • Call Detail Recording (CDR) • Storage of customer data • Programming • Messaging and Voice Prompts • Dialing plans • Programming interface 47 Nortel Confidential

SCS 500 Hardware Options • Dell- SCS 500 is singular app • Optiplex 755 (available preloaded through Nortel) • Power. Edge R 300 • IBM- SCS 500 is one of many apps • Existing System i • Power Systems family • JUST BEING ANNOUNCED— HP- SCS 500 is singular app • DL 360 SCS 500 is a software centric UC solution offered on multiple hardware servers 48 Nortel Confidential

SCS 500 Third Party/Nortel Gateway Options Communicating beyond the Local SCS 500 System • SCS 500 SIP-to-TDM Gateways • Analog and Digital Trunking Options • Analog Line-Side Options • SCS 500 SIP-to-SIP Trunking Gateways • Session Border Controllers to the SIP PSTN • Nortel BCM 50 R 3 as a PSTN Gateway 49 Nortel Confidential

Solution Components Gateways–SIP-to-PSTN SIP Connectivity Nortel Session Border Controllers (SBCs) • Enables SIP Trunking to a SIP-based PSTN • Small (up to 40 simultaneous calls) • Large (up to 150 simultaneous calls) • Standalone SBC for secure transit of SIP traffic • Used for remote workers or to connect via SIP trunking to service provider (for call origination/termination) SIP Only Intranet 50 SCS 500 FW Internet ITSP Nortel Confidential

What is SCS 500? Solution Components – High Availability Design 51 Nortel Confidential

What is SCS 500? Solution Components • LG Nortel 6800 Series SIP Telephones • The 6804 – Basic functionality for use in lobbies, conference rooms and “low-use” areas. • The 6812 – A perfect combination of features to empower employees every day. • The 6830 – Loaded with enhancements to boost the productivity of attendants and office managers. • Supports Flex Buttons LG-6804 52 LG-6812 Nortel Confidential LG-6830

What is SCS 500? 6800 Summary Telephone configuration is done through either the Telset (6812 / 6830 only) or through the Web Administration Manager SIP 53 SIP Nortel Confidential SIP

What is SCS 500? IP Phone 1535 • SIP – RFC 3261 Compliant • Connectivity: • Hi Res Color 3. 5” Display • Camera • Integrated ¼” VGA • 10/100 Ethernet • 320 x 240 pixels • Still or Full Mo (30 fps) • 802. 11 b/g Wi. Fi 54 • Adjustable tilt • 65 K colors Nortel Confidential • G. 711, G. 723, G. 729 A

Other SIP Phones Additions – Polycom OEM (Q 3 2008) – Coming Soon! • Sound. Point IP 330 and 320: Entry-level IP phones 2 - line with enterprise-grade features and outstanding voice quality. Single (320) and dual (330) 10/100 Mbps Ethernet ports with graphical LCD display • Sound. Point IP 550: Cutting-edge SIP feature set meets Polycom HD Voice™. Dual 10/100 Mbps Ethernet ports. Office professional level graphical LCD set with 4 -line backlit display • Sound. Point IP 650: High-performance IP phone with Polycom HD Voice™. Dual 10/100 Mbps Ethernet ports including USB port. Supports up to 3 BLF expansion modules. Executive office level graphical LCD set with 6 -line backlit display • Sound. Station IP 4000: The full-duplex clear IP conferencing solution, with expansion microphones 55 Nortel Confidential

What is SCS 500? Soft. Phones and Clients (Names Tentative)—Four Types • Nortel Softphone 3455 (Counterpath eye. Beam) uses a dial pad-centric interface that allows users to manage their voice, video, Instant Messaging and presence applications on their desktop, permitting users to easily transition from a traditional hard phone to Unified Communications. • Nortel Softphone 3456 (Counterpath Bria) uses a contact-centric interface which focuses around the users address book to provide a Unified Communications interface for voice, video, Instant Messaging and presence applications. • SCS 500 Client for Microsoft Outlook allows users to add Voice over IP capabilities to Microsoft Outlook. • SCS 500 Client for IBM Lotus Sametime allows users to add Voice over IP to IBM Lotus Sametime and Lotus Notes NOT SUPPORTED ON MAC AT THIS TIME AS PREVIOUSLY NOTED—STAY TUNED 56 Nortel Confidential

What is SCS 500? Solution Components: Microsoft Outlook Plug-in Users can point and click to establish calls within Outlook. 57 57 Nortel Confidential

What is SCS 500? Solution Components: IBM Lotus Notes / Sametime Plug-in > Integrates into Sametime as a plug-in > Integrated into Lotus Notes 8. 0 as part of the Sametime integration. > Contains all of the same client configurations options as the desktop and Outlook clients. 58 58 Nortel Confidential

BCM 450 Positioning BCM 450, SCS 500 and CS 1000 BCM 450 SCS 500 CS 1000 Market Segment SMB – IP/IP Hybrid SMB – Pure SIP Enterprise – IP/IP Hybrid Max Line Size 300 IP / 300 Digital 1, 000 SIP 22, 500 IP / 5, 000 Digital Target Users 30 -250 30 -500 100 -5, 000 Customer Type New + Installed base Norstar New + Meridian 1 Customer Values Value, “All-in-One”, Integrated Simplicity, User Configurability, UC Scalability, Sophistication, Resiliency Telephony Features Advanced Standard Advanced Contact Center Features Advanced Basic Advanced Investment Protection Yes No No Converged Mgmt (Data) Yes No Yes Mobility Phones Yes No Yes Soft Phones Basic – PC + PDA Advanced – PC Basic + Advanced – PC + PDA Advanced Collaboration 2 No Yes Different products aimed at different market segments with different customer needs. 1) CS 1000 E for New customers, CS 1000 M for Meridian customers; 2) Advanced Collaboration includes: Video Conferencing, Find Me / Follow Me, Embedded IM, Presence. 59 Nortel Confidential

Business Communications Manager Awards and Recognition • INTERNET TELEPHONY® Magazine 2007 Excellence Award • “BCM 400 has proven its outstanding contribution to IP communications and delivered winning solutions for its customers. ” • TMC Labs 2007 Innovation Award from Customer Interaction Solutions® Magazine • “Nortel has clearly demonstrated that BCM 50 is truly innovative in the CRM or call/contact center industry. BCM 50 has made significant contributions in the advancement of this industry. “ • Search. Networking. com™ 2007 Product Leadership Gold Award • “Nortel’s all-in-one BCM is winning SMBs over to Vo. IP and provides SMBs with an affordable (and relatively painless) path to converged voice and data communications. " For more information please visit www. nortel. com/awards 60 Nortel Confidential

Why Nortel in SMB & Unified Communications? Proof Points • Among Top 3 Leaders in Voice, Data, Convergence, Applications • Gartner’s Magic Quadrant leader in Unified Communications • A broad portfolio of standards-based products • An extensive partner community operating in 150 countries around the world • Complementary Nortel Global Services expertise • 20+ years experience in SMB market leadership • 15 million SMB users in over 80 countries • Large installed SMB base • SMB products that are designed for SMBs 61 Nortel Confidential

Thank You Questions?