Nortel Networks

Another Step in Building World-Class Corporate Governance Practice

    Toronto (ots/PRNewswire) - Nortel(x) (NYSE/TSX: NT) announced today that its Board of Directors has  selected KPMG LLP as the Company's independent auditor commencing with fiscal  year 2007. This selection concludes a thorough evaluation which the Company conducted as part of its corporate renewal process.

    "Nortel is committed to building a great company founded on world- class corporate governance. As such, we conducted a rigorous selection  process in search of an independent auditor with the optimal skills mix to  match our current business requirements," said Peter Currie, executive vice  president and chief financial officer, Nortel. "We found that KPMG has the  expertise to help us cement a leading-edge corporate governance practice."

    The appointment of KPMG as independent auditor is subject to the approval of the Company's shareholders at its next annual shareholder meeting.

    Deloitte & Touche LLP is the Company's current independent auditor.  The intended change in independent auditor does not result from any  disagreement or dissatisfaction between Nortel and Deloitte.

    "Nortel has been pleased with the service of Deloitte & Touche and, in  particular, with the close collaboration provided in recent years. Deloitte  helped Nortel overcome significant challenges to ensure that our financial  reporting is accurate and up-to-date. We thank them for their service and  look forward to continued work with them in other capacities going forward,"  said Currie.

    KPMG was also selected as Nortel Networks Limited's independent auditor commencing with fiscal 2007.

    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. Our  next-generation technologies, for both service providers and enterprises,  span access and core networks, support multimedia and business-critical  applications, and help eliminate today's barriers to efficiency, speed and  performance by simplifying networks and connecting people with information.  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 statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates ", "targets", "envisions", "seeks" and other similar language and are  considered forward-looking statements or information under applicable  securities legislation. These statements are based on Nortel's current  expectations, estimates, forecasts and projections about the operating  environment, economies and markets in which Nortel operates. These  statements are subject to important assumptions, risks and uncertainties,  which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from  those contemplated in forward-looking statements as a result of the  following (i) risks and uncertainties relating to Nortel's restatements and  related matters including: Nortel's most recent restatement and two  previous restatements of its financial statements and related events; the  negative impact on Nortel and NNL of their most recent restatement and  delay in filing their financial statements and related periodic reports;  legal judgments, fines, penalties or settlements, or any substantial  regulatory fines or other penalties or sanctions, related to the ongoing  regulatory and criminal investigations of Nortel in the U.S. and Canada;  any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and /or significant dilution of Nortel's existing equity positions resulting  from the approval of its proposed class action settlement; any unsuccessful  remediation of Nortel's material weaknesses in internal control over  financial reporting resulting in an inability to report Nortel's results of  operations and financial condition accurately and in a timely manner; the time required to implement Nortel's remedial measures; Nortel's inability to access, in its current form, its shelf registration  filed with the United States Securities and Exchange Commission (SEC), and  Nortel's below investment grade credit rating and any further adverse  effect on its credit rating due to Nortel's restatements of its financial statements; any adverse affect on Nortel's business and market price of its  publicly traded securities arising from continuing negative publicity  related to Nortel's restatements; Nortel's potential inability to attract  or retain the personnel necessary to achieve its business objectives; any  breach by Nortel of the continued listing requirements of the NYSE or TSX  causing the NYSE and/or the TSX to commence suspension or delisting  procedures; (ii) risks and uncertainties relating to Nortel's business  including: yearly and quarterly fluctuations of Nortel's operating results;  reduced demand and pricing pressures for its products due to global  economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation,  rapidly changing technologies, evolving industry standards, frequent new  product introductions and short product life cycles, and other trends and  industry characteristics affecting the telecommunications industry; the  sufficiency of recently announced restructuring actions, including the  potential for higher actual costs to be incurred in connection with these  restructuring actions compared to the estimated costs of such actions and  the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; any material and adverse affects on  Nortel's performance if its expectations regarding market demand for  particular products prove to be wrong or because of certain barriers in its  efforts to expand internationally; any reduction in Nortel's operating  results and any related volatility in the market price of its publicly  traded securities arising from any decline in its gross margin, or  fluctuations in foreign currency exchange rates; any negative developments  associated with Nortel's supply contract and contract manufacturing  agreements including as a result of using a sole supplier for key optical  networking solutions components, and any defects or errors in Nortel's  current or planned products; any negative impact to Nortel of its failure  to achieve its business transformation objectives, including completion of  the sale of its UMTS access business to Alcatel; additional valuation allowances for all or a portion of its deferred tax assets; Nortel's failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual  property; changes in regulation of the Internet and/or other aspects of the  industry; Nortel's failure to successfully operate or integrate its  strategic acquisitions, or failure to consummate or succeed with its  strategic alliances; any negative effect of Nortel's failure to evolve  adequately its financial and managerial control and reporting systems and  processes, manage and grow its business, or create an effective risk  management strategy; and (iii) risks and uncertainties relating to Nortel's  liquidity, financing arrangements and capital including: the impact of  Nortel's most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business  objectives in a timely manner or obtain additional sources of funding; high  levels of debt, limitations on Nortel capitalizing on business  opportunities because of support facility covenants, or on obtaining  additional secured debt pursuant to the provisions of indentures governing  certain of Nortel's public debt issues and the provisions of its support  facility; any increase of restricted cash requirements for Nortel if it is  unable to secure alternative support for obligations arising from certain  normal course business activities, or any inability of Nortel's  subsidiaries to provide it with sufficient funding; any negative effect to  Nortel of the need to make larger defined benefit plans contributions in  the future or exposure to customer credit risks or inability of customers  to fulfill payment obligations under customer financing arrangements; any  negative impact on Nortel's ability to make future acquisitions, raise  capital, issue debt and retain employees arising from stock price  volatility and further declines in the market price of Nortel's publicly  traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel's common shares. For additional information with respect to certain of these  and other factors, see Nortel's Annual Report on Form 10-K/A, Quarterly  Reports on Form 10-Q and other securities filings 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.

ots Originaltext: Nortel Networks
Im Internet recherchierbar: http://www.presseportal.ch

Contact:
For further information: Jay Barta, +1-(972)-685-2381,
jbarta@nortel.com



Weitere Meldungen: Nortel Networks

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