Mercedes-Benz Canada Chooses Norstan IP Voice/Data Solution for New Toronto Headquarters

MINNEAPOLIS--July 24, 2003--Norstan, Inc. , a leading provider of communications technology solutions, announced today that Norstan Canada, Ltd. will supply Mercedes-Benz Canada Inc. with an Internet Protocol (IP) voice and data system for the company's new Toronto headquarters facility. The purchase of a Nortel Succession CSE 1000 system, along with other equipment and software, expands a relationship Mercedes-Benz Canada and Norstan have developed in recent years. The new system will help Mercedes-Benz Canada lower its maintenance costs and streamline the management of all its voice and data communications.

Norstan has been supporting Mercedes-Benz Canada with video conferencing solutions for a number of years, and began providing the company's dealerships with Nortel's Norstar phone systems in the last 18 months. For their new headquarters, Norstan proposed that the company look into the benefits of combining all voice and data networks on a Nortel IP platform.

The IP system Norstan recommended includes Nortel Succession CSE 1000, 190 IP phones, Call Pilot voice mail and Symposium Express, an automatic call distribution system that quickly routes each caller to the appropriate person. In addition to lower costs with centralized voice/data management and billing, Mercedes-Benz Canada also receives a superior call centre solution. The company's mobile employees will be able to take advantage of soft phones and the system also allows easy integration of wireless IP technology in the future.

"We've been very pleased with the products and service Norstan has provided in the past and we were very satisfied with the Nortel phone systems used at our retail facilities," said John Westcott, director of Information Technology and CIO at Mercedes-Benz Canada Inc. "So it made sense to look at Norstan's proposal to combine voice and data in a Nortel Succession IP system at our new headquarters. The new system will make it easier to manage the ever growing voice and data convergence demands, and it can expand to meet our future needs."

"Our solution for Mercedes-Benz Canada points to the value of our partnership with Nortel and our ability to provide the latest in IP technology for our customers," said Larry J. Schmidt, executive vice president of Norstan's Communications Technology Direct Solutions. "We're also pleased to extend our relationship with Mercedes-Benz Canada. This solution is another example of how Norstan can help its customers by providing cost-saving ideas, leading products and the best services possible."

About Mercedes-Benz Canada Inc., www.mercedes-benz.ca

Founded in 1955 and based in Toronto, Mercedes-Benz Canada Inc. is the Canadian subsidiary of DaimlerChrysler AG, the world's oldest car manufacturer. Mercedes-Benz Canada imports into Canada and distributes more than 50 Mercedes-Benz models, including coupes, sedans, station wagons, convertibles and All-Activity Vehicles. Each vehicle is built with the same commitment to quality and innovation that has been at the heart of DaimlerChrysler for more than 115 years.

About Norstan, Inc., www.norstan.com

Norstan, Inc. ...the technology services people who improve the way their customers communicate. A full-service telecommunications solutions company that delivers voice and data technologies and services, and remanufactured equipment to select corporate end-users and channel partners. Norstan also offers a full range of technologies for contact center design, messaging, infrastructure, conferencing and mobility. Headquartered in suburban Minneapolis, Norstan, a company small enough to care, yet big enough to serve, has offices located throughout North America. Specifically, the Canadian headquarters is located in Toronto. To learn more, visit the Norstan website at www.norstan.com.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Acts of 1995. A number of factors should be considered in conjunction with the above forward-looking statements, including changes in economic and market conditions, factors related to the development of new technologies, product pricing, industry regulation, management of growth, the integration of regulation, management of growth, the integration of acquisitions, and other factors set forth in cautionary statements included in Norstan's Form 10-K and other documents filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date of this release. The company undertakes no obligation to update these forward-looking statements to reflect events and circumstances that may arise after the date of this release.

Norstan and associated product names are trademarks or registered trademarks of Norstan, Inc. in Canada, the United States and/or other countries. All other products and services mentioned in this document may be trademarks of the companies with which they are associated.