Corporate Information 
Investor Relations
|
 |
Your Location: Home / News & Events / News Releases
November 25, 2004
Nortel Networks Declares Preferred Share Dividends
TORONTO – The board of directors of Nortel Networks* Limited declared a dividend on each of the
outstanding Cumulative Redeemable Class A Preferred Shares Series 5 [TSX: NTL.PR.F] and the
outstanding Non-cumulative Redeemable Class A Preferred Shares Series 7 [TSX: NTL.PR.G]. The dividend
amount for each series is calculated in accordance with the terms and conditions applicable to each
respective series, as set out in the Company’s articles. The annual dividend rate for each series floats in
relation to changes in the average of the prime rate of Royal Bank of Canada and The Toronto-Dominion
Bank during the preceding month (“Prime”) and is adjusted upwards or downwards on a monthly basis by an
adjustment factor which is based on the weighted average daily trading price of each of the series for the
preceding month, respectively. The maximum monthly adjustment for changes in the weighted average daily
trading price of each of the series will be plus or minus 4.0% of Prime. The annual floating dividend rate
applicable for a month will in no event be less than 50% of Prime or greater than Prime. The dividend on
each series is payable on January 12, 2005 to shareholders of record of such series at the close of business
on December 31, 2004.
************************
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 Nortel’s independent review and planned restatement or
revisions of its previously announced or filed financial results; the resolution of the accounting issues announced on November 11, 2004,
including the outcome of discussions with the United States Securities and Exchange Commission; the impact of the management
changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel’s filing obligations on support
facilities and public debt obligations; any potential delisting or suspension of the Company’s or NNL’s securities; the adverse resolution of
litigation, investigations, intellectual property disputes and similar matters; 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; the
communication by Nortel’s auditors of the existence of material weaknesses in internal controls; Nortel’s ability to recruit and retain
qualified employees; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; 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 flows; 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 of Nortel’s 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 Form 10-Q/A and Form 10-K/A 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.
Contact for Press and Analysts:
Investors
Nortel
(888) 901-7286
(905) 863-6049
investor@nortel.com
Media
Tina Warren
Nortel
(905) 863-4702
tinawarr@nortel.com
Additional Media & Analyst Contacts
|
