1 July 2009

SEOUL - Customers of Telio, Norway's second-largest VoIP telephony provider, can now enjoy voice, video and data services in their homes using the award-winning IP3870 multimedia terminal from LG-Nortel, a joint venture of LG Electronics and Nortel* [OTC: NRTLQ].

With more than 115,000 customers, Telio was the first company to provide VoIP services in Norway. It quickly gained popularity there, in Denmark and the Netherlands with fixed-price calling plans that include free phone calls to Western Europe, the United States and Canada. Telio introduced IP-based videoconferencing services in 2007, and is now launching a full range of IMS (IP Multimedia Subsystem) capabilities that will deliver video calling and more into customers' homes via the LG-Nortel IP3870 multimedia terminal.

The LG-Nortel IP3870 combines a full-featured base station and cordless DECT extension handset to provide multimedia functionality and portability inside the home or small business. A color screen, stereo speakers, built-in camera, and a wideband codec delivering optimal voice quality combine to enable a broad range of IMS-based applications and services. The IP 3870 received a 2009 iF product design award, one of the world's leading design honors, from the iF International Forum Design in recognition of the way its sleek design combines both form and functionality.

"As an early innovator in the delivery of IP-based communications services, Telio is constantly looking for ways to advance the state-of-the-art," said Eirik Lunde, CEO of Telio. "Our new range of IMS-based multimedia services will provide a new level of communications to our customers, and we can think of no better platform to deliver those services on than the LG-Nortel IP 3870 terminal. Its stylish design and rich functionality make it the perfect benchtop companion to our IP communications services, bringing videoconferencing and interactive information services to the center of the household."

"Our IP3870 multimedia terminal has won a prestigious design award and been adopted by leading carriers around the world," said JD An, vice president of LG-Nortel. "Telio's decision to deliver its innovative IMS-based services to customers using the IP3870 confirms what we at LG-Nortel have believed all along: that it is possible to combine cutting-edge technology into a stylish, user-friendly device that opens the doors to a new world of communications."

The IP3870 multimedia terminal features a 4.3 inch video screen, built-in camera, SD/MMC card reader, SRS WOW HD sound by stereo speakers and Wi-Fi base station, which lets customers make video calls to friends and family; send and receive MMS messages; access weather, banking and other information services; and surf the Web over their existing broadband connection. The IP3870MH is a cordless handset that incorporates a 2-inch color screen, allowing customers to access personalized content while roaming freely within their homes.

Nortel

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