Nortel Networks

Nortel Files Resegmented Financial Information

    Toronto (ots/PRNewswire) - Nortel Networks(x) Corporation (NYSE/TSX: NT) today announced that it and its principal direct operating subsidiary, Nortel Networks Limited ("NNL"), have filed and furnished certain additional information under cover of Form 8-K. This additional information includes new audited consolidated financial statements as of December 31, 2005 and 2004 and for each of the years in the three-year period ended December 31, 2005, restated only to reflect the change in the Company's and NNL's reportable segments effective January 1, 2006 (which had no impact to the Company's and NNL's consolidated statements of operations, consolidated balance sheets or consolidated statements of cash flows), as well as the management's discussion and analysis of financial condition and results of operations section and portions of the business description contained in the Company's 2005 Annual Report on Form 10-K/A and NNL's 2005 Annual Report on Form 10-K, also revised only to reflect the new reportable segments. Also contained in the Form 8-K is certain supplementary financial and other information. This announcement is being made in accordance with the Company's disclosure policies adopted pursuant to applicable Canadian regulatory pronouncements.

    (x)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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