March 04, 2005 09:02 ET

Nortel Announces Senior Management Appointments




MARCH 4, 2005 - 09:02 ET

Nortel Announces Senior Management Appointments

TORONTO, ONTARIO--(CCNMatthews - March 4, 2005) -

Bill Owens Appointed Vice Chairman and CEO; Gary Daichendt Appointed
President and COO; Peter Currie Appointed Executive Vice President and

Nortel Networks Corporation (NYSE:NT)(TSX:NT) announced today that its
Board of Directors has made senior management changes designed to
strengthen the Company's leadership team, drive global operational
excellence and position Nortel for the future. Bill Owens, president and
chief executive officer (CEO), will continue to drive the strategic
direction of the Company while dedicating new senior executive talent to
Nortel's global operations and related functions.

To that end, Owens will become the vice chairman and CEO effective March
14, 2005. The Company further announced the appointment of Gary
Daichendt to the position of president and chief operating officer (COO)
reporting to Owens. Daichendt is a senior executive with more than 30
years of experience in the global technology industry and was previously
executive vice president, Worldwide Operations, Cisco Systems.
Daichendt's appointment is also effective March 14, 2005.

Peter Currie, who was appointed chief financial officer (CFO) effective
February 14, 2005, will become executive vice president and CFO
effective March 14, 2005. This appointment reinforces the critical
importance of Currie's role in the transformation of Nortel's financial

"We are playing to win," Owens said, "and Gary will play a critical role
in our doing so. He is a world class leader with unquestioned integrity
and one of the top technology executives in the world. Gary's deep
involvement in the spectacular growth of some of the world's leading
technology powerhouses and his unique track record have given him a
special perspective and experience that will optimally position our
great Company for our customers, shareholders and employees. All of us
at Nortel are very pleased with his decision to join us."

In his new role Daichendt will be responsible for leading Nortel's
carrier and enterprise businesses, research and development, services
and supply chain functions and global sales and operations. In addition
to Daichendt, the Company's senior strategy team including the executive
vice president and CFO, chief legal officer and chief strategy officer
will continue to report directly to Owens. Pascal Debon, currently
president, Carrier Networks, will assume the role of special advisor to
the vice chairman and CEO effective March 14, 2005.

"The telecom market is now beginning another tremendous and exciting
evolution and Nortel is a leading global player that I have long admired
over my years in the industry," Daichendt said. "Throughout my career I
have had a focus on operational excellence and business growth. I am
very excited about being part of the new Nortel and working hard to
bring additional value to this very strong team."

During his tenure at Cisco Systems, Daichendt had increasing
responsibility for overseeing the company's sales force, services,
manufacturing facilities, integration execution and strategic alliances.
Under his leadership, Cisco's international business grew significantly
as he was the principal operating executive during that company's growth
in the 1990s. Prior to joining Cisco Systems, Daichendt held senior
marketing, sales and operations positions at System Software Associates,
Inc., Wang Laboratories, Inc., and IBM Corporation. He holds a Master's
of Science from Ohio State University and a Bachelor of Arts from
Youngstown State University.

Daichendt's appointment is the latest in a series of senior management
additions to the Nortel leadership team made by Owens over the past
several months. These recent appointments have included the new roles of
chief marketing officer, chief strategy officer and chief ethics and
compliance officer. These appointments are intended to enhance and
complement the already strong experience and track record of Nortel's
longtime senior executive team members. This is part of Nortel's ongoing
commitment to ensuring it is well-positioned to drive future growth.

Owens has also been appointed vice chairman and CEO of Nortel Networks
Limited, the Company's principal operating subsidiary. Daichendt and
Currie have been appointed president and COO and executive vice
president and CFO, respectively, of Nortel Networks Limited.

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 regulatory and
criminal investigations and civil litigation actions related to Nortel's
restatements and the impact any resulting legal judgments, settlements,
penalties and expenses could have on Nortel's results of operations,
financial condition and liquidity; the findings of Nortel's independent
review and implementation of recommended remedial measures; the outcome
of the independent review with respect to revenues for specific
identified transactions, which review will have a particular emphasis on
the underlying conduct that led to the initial recognition of these
revenues; the restatement or revisions of Nortel's previously announced
or filed financial results and resulting negative publicity; the
existence of material weaknesses in Nortel's internal controls over
financial reporting; the impact of Nortel's and NNL's failure to timely
file their financial statements and related periodic reports, including
breach of its support facility and public debt obligations and Nortel's
inability to access its shelf registration statement filed with the
United States Securities and Exchange Commission ("SEC"); ongoing SEC
reviews, which may result in changes to our public filings; the
potential delisting or suspension of Nortel's and NNL's publicly traded
securities; the impact of management changes, including the termination
for cause of Nortel's former CEO, CFO and Controller in April 2004; 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; fluctuations in Nortel's cash flow, level
of outstanding debt and current debt ratings; Nortel's ability to
recruit and retain qualified employees; 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 flow; the adverse resolution of class actions, litigation
in the ordinary course of business, intellectual property disputes and
similar matters; 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, which is
currently not available, of Nortel's forward 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 Annual Report on Form 10-K and Quarterly
Report on Form 10-Q 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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