Nortel
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Nortel

July 20, 2005 09:00 ET

Nortel to Host Policy Discussion on Convergence of Telecom, TV Industries; Second in Series of Events Features Congressional, Industry Leaders

WASHINGTON--(CCNMatthews - Jul 20, 2005) -

Nortel (NYSE:NT) (TSX:NT) will host a panel discussion today on Capitol Hill featuring policymakers and industry experts who will examine the implications of the coming revolution in the way residential video services are delivered.

Participants will provide authoritative perspectives on the impact of communications convergence on the telecommunications and broadcast industries. They will also focus on the need for policymakers to establish a regulatory framework that maximizes the potential benefits of convergence to consumers and industry.

Today's discussion will be the second event in Nortel's continuing Congressional Policy Luncheon series -- Perspectives on the Power of Telecommunications Convergence and Solving the Policy Conundrum.

Panelists for today's event will include: Rep. Rick Boucher (D-VA), a senior member of the House Energy and Commerce Committee and co-chair of the Congressional Internet Caucus; Walt Megura, general manager for Broadband Network Solutions, Nortel; Steve Berry, senior vice president, Government Relations, National Cable & Telecommunications Association (NCTA); and Brent Olson, assistant vice president, Regulatory Policy, Emerging Services and Technologies, SBC Communications.

"The decision by traditional telephone service providers to offer hundreds of channels of TV programming, whether over fiber optic cable or using Internet protocol, will in many areas provide a third service provider to vie with cable and satellite, thereby enhancing the competitiveness of the market," said Rep. Boucher. "The challenge for Congress is to develop a regulatory framework which will enable consumers to benefit from choice and competition."

"Major U.S. telecommunication companies are investing billions of dollars at home and abroad in ventures to deliver video via high speed data networks," Megura said. "Similarly, cable companies around the world have invested heavily in the delivery of broadband and telecom services. Two worlds are converging in a very powerful way, challenging policy makers to remove regulatory uncertainty in a way that is pro-innovation, pro-competition, and pro-consumer."

Ray Strassburger, vice president and senior Washington counsel for Nortel, will moderate the discussion as panelists explore how technological convergence is producing revolutionary changes in the nature and delivery of video services.

"We hope that these discussions will provide useful information and insight to Congress, the FCC, the administration and the industry as the policy debates on telecommunications reform continue," Strassburger said. "As voice, data, and video services converge, policymakers are increasingly finding the implications for regulatory policy on their doorstep."

The event will take place at 12 p.m. eastern time today (July 20, 2005) in Room 2168 of the Rayburn House Office Building.

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 www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

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, and any related potential dilution of Nortel's common shares; 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 control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including 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 Nortel's and NNL's public filings; 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 and December 14, 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; increased consolidation among Nortel's customers and the loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; 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 and consolidation 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 of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; 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 Networks.

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