PLEASE NOTE:
The Company and Nortel Networks Limited (NNL) restated our respective consolidated financial statements for the 2005 and 2004 fiscal years, and for the quarters ended March 31, June 30 and September 30, 2006, in our respective 2006 Annual Reports on Form 10-K. Certain adjustments to previously reported consolidated financial statements for prior periods were also identified in connection with the restatement. The previously filed financial statements of the Company and NNL for the quarters ended March 31, June 30 and September 30, 2006, and for the 2005 and 2004 fiscal years, and our auditors' reports dated April 28, 2006 regarding the consolidated financial statements of the Company and NNL as of December 31, 2005 and for the years ended December 31, 2005 and 2004, including corresponding interim financial statements, should not be relied upon. Furthermore, the Company and NNL effected a restatement of our respective consolidated financial statements for the 2004 and 2003 fiscal years and the quarters ended March 31, June 30 and September 30, 2005, in our respective 2005 Annual Reports on Form 10-K/A and Form 10-K, respectively. Certain adjustments to our previously reported consolidated financial statements for fiscal 2002 and 2001 were also identified in connection with the restatement. The historical statements of the Company and NNL for the aforementioned restated periods, and for the 2002 and 2001 fiscal years and the auditors' reports thereon, as applicable, and the corresponding quarterly financial statements, should not be relied upon. We believe that we have included all information needed for current investor understanding in the financial statements that gave effect to our restatements.

Last Updated: March 17, 2008