January 03, 2005 08:01 ET

New York Stock Exchange Grants Nortel Three-Month Extension




JANUARY 3, 2005 - 08:01 ET

New York Stock Exchange Grants Nortel Three-Month

TORONTO--(CCNMatthews - Jan 3, 2005) -

Nortel Networks Corporation (NYSE:NT) (TSX:NT) and its principal
operating subsidiary, Nortel Networks Limited ("NNL"), today announced
that the New York Stock Exchange (the "NYSE") has granted the Company
and NNL an extension of up to an additional three months to file their
2003 Annual Reports on Form 10-K with the Securities and Exchange
Commission (the "SEC"), during which time the common shares of the
Company and other Company and NNL securities will remain listed on the
NYSE. The extension is subject to review by the NYSE on an ongoing
basis. In the event that the Company and NNL do not complete the filing
of their 2003 Annual Reports on Form 10-K by March 31, 2005, the NYSE
will move forward with the initiation of suspension procedures.

The Company and NNL continue to cooperate with the NYSE concerning their
expected timetable regarding the filing of their 2003 Annual Reports on
Form 10-K and their quarterly reports for 2004. As previously announced,
the Company expects that it and NNL will commence to file these reports
on January 10, 2005.

About Nortel

Nortel is a recognized leader in delivering communications capabilities
that enhance the human experience, ignite and power global commerce, and
secure and protect the world's most critical information. Serving both
service provider and enterprise customers, Nortel delivers innovative
technology solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband designed to
help people solve the world's greatest challenges. Nortel does business
in more than 150 countries. For more information, visit Nortel on the
Web at For the latest Nortel news, visit

Certain information included in this press release is forward-looking
and is subject to important risks and uncertainties. The results or
events predicted in these statements may differ materially from actual
results or events.

Factors which could cause results or events to differ from current
expectations include, among other things: the outcome of Nortel's
independent review and planned restatement or revisions of its
previously announced or filed financial results; the resolution of the
accounting issues announced on November 11, 2004, including the outcome
of discussions with the United States Securities and Exchange
Commission; the impact of the management changes announced on April 28,
2004 and August 19, 2004; the impact of the inability to meet Nortel's
filing obligations on support facilities and public debt obligations;
any potential delisting or suspension of the Company's or NNL's
securities; the adverse resolution of litigation, investigations,
intellectual property disputes and similar matters; the sufficiency of
Nortel's restructuring activities, including the work plan announced on
August 19, 2004 as updated on September 30, 2004, including the
potential for higher actual costs to be incurred in connection with
restructuring actions compared to the estimated costs of such actions;
cautious or reduced spending by Nortel's customers; fluctuations in
Nortel's operating results and general industry, economic and market
conditions and growth rates; the communication by Nortel's auditors of
the existence of material weaknesses in internal controls; Nortel's
ability to recruit and retain qualified employees; fluctuations in
Nortel's cash flow, level of outstanding debt and current debt ratings;
the use of cash collateral to support Nortel's normal course business
activities; the dependence on Nortel's subsidiaries for funding; the
impact of Nortel's defined benefit plans and deferred tax assets on
results of operations and Nortel's cash flows; Nortel's dependence on
new product development and its ability to predict market demand for
particular products; Nortel's ability to integrate the operations and
technologies of acquired businesses in an effective manner; the impact
of rapid technological and market change; the impact of price and
product competition; barriers to international growth and global
economic conditions, particularly in emerging markets and including
interest rate and currency exchange rate fluctuations; the impact of
rationalization in the telecommunications industry; changes in
regulation of the Internet; the impact of the credit risks of Nortel's
customers and the impact of customer financing and commitments; stock
market volatility generally and as a result of acceleration of the
settlement date or early settlement of Nortel's purchase contracts; the
impact of Nortel's supply and outsourcing contracts that contain
delivery and installation provisions, which, if not met, could result in
the payment of substantial penalties or liquidated damages; and the
future success of Nortel's strategic alliances.

For additional information with respect to certain of these and other
factors, see the most recent Form 10-Q/A and Form 10-K/A filed by Nortel
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.

Nortel, the Nortel logo and the Globemark are trademarks of Nortel.


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