Exhibit 99.1

          Norstan Announces Reorganization of Communications
                    Solutions & Services Business;
   Streamlined Management Team to Focus on Long-Term Profitability

    MINNEAPOLIS--(BUSINESS WIRE)--Feb. 13, 2004--Norstan, Inc.
(Nasdaq:NRRD), today announced a reorganization within its
Communications Solutions & Services business segment to sharpen the
company's focus and streamline sales and services to improve company
profitability.
    In the segment's new structure, Norstan's Solutions & Services
business unit will concentrate customer acquisition and retention
efforts in two geographically focused business units. To better
deliver its full portfolio of customer contact centers, voice and
converged communications, messaging and conferencing, each business
unit will be managed by a senior vice president with P&L, sales,
project management and services delivery responsibilities that are
aligned with specific solutions for customers within defined
geographic markets.
    Additionally, the company has realigned several of its sales
support and services functions to form the Corporate Customer Services
organization. This organization focuses on providing support to the
Solutions & Services team and meeting customer needs around products,
service programs, engineering and professional services, remote
support, procurement and logistics.
    Norstan's Channels Development business unit, specializing in
technology implementation and support services for network providers,
manufacturers, integrators and resellers, will be integrated into the
Solutions & Services business unit, expanding the breadth of sales and
services support offered to current and future channel partners.
Finally, Norstan's Convergence Development Group (CDG) will continue
offering applications in voice over Internet Protocol through
distribution channels with selected manufacturers and business
partners.
    "We believe this new structure will enable us to improve our
solutions and services delivery to the markets in the United States
and Canada. We expect improved efficiencies and cost-effectiveness
within the business segment and corporate administration," said Scott
G. Christian, Norstan's president and chief executive officer. "We
remain committed to providing our customers the highest quality
solutions and services as we aim for improving profitability."
    Personnel changes resulting from this reorganization include the
promotions of Steve D. Anderson, senior vice president - Eastern U.S.
and Canada; Donna M. Warner, senior vice president -Central & Western
U.S., and Michael E. Laughlin, senior vice president - Corporate
Customer Services. Kevin D. Brown will continue as vice president of
Norstan CDG. These individuals, in addition to Robert J. Vold, senior
vice president and chief financial officer; Roger D. Van Beusekom,
senior vice president of Resale Services; Jerry P. Lehrman, vice
president and general counsel; and, Alan R. Perry, vice president of
human resources, will report directly to Scott G. Christian, president
and chief executive officer.
    "We believe we have the right organizational approach in place to
move Norstan forward," said Christian. "Our goal is to continue
aligning our internal resources to create a more focused, cost-driven
organization that provides quality communications solutions and
services to our customers in a more efficient manner."
    As part of the company's efforts to streamline its management
team, Larry J. Schmidt, executive vice president of Communications
Technology Direct Solutions, Karel Lukas, vice president of marketing,
Steve Willems, vice president and chief information officer and Paul
Hales, vice president, business development, have departed Norstan.
    The company anticipates it will take a charge in the fourth fiscal
quarter related to its restructuring actions, the amount unspecified
at this time.
    Norstan will report third quarter fiscal 2004 results on March 16,
2004 after the close of the market. While Norstan has provided no
formalized earnings guidance for fiscal 2004, the company reiterates
that it anticipates operating profitability before restructuring
charges to improve in the remaining quarters of fiscal 2004 as a
result of cost cutting measures taken during the second fiscal
quarter.

    Cautionary Statement Under the Private Securities Litigation
Reform Act of 1995

    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,
integration of acquisitions, access to adequate long-term financing
and other factors set forth in cautionary statements included in
Norstan's Form 10-K and other documents as 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. Disclosure of revenue dollars are not intended to reflect
materiality, and are subject to confidentiality provisions and
customer consent.

    About Norstan, Inc.

    Norstan, Inc. (Nasdaq:NRRD) - ...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 call center design, messaging,
infrastructure, conferencing and mobility. Norstan has offices
throughout the U.S. and Canada. To learn more, visit the Norstan
website at www.norstan.com.

    Norstan and associated product names are trademarks or registered
trademarks of Norstan, Inc. in 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.


    CONTACT: Norstan, Inc., Minneapolis
             Jan W. Drymon, 952-352-4292
             jan.drymon@norstan.com
             or
             The Carideo Group
             Tony Carideo, 612-317-2880
             tony@carideogroup.com