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NEW YORK CITY – Bill Owens, president and chief executive officer, Nortel* [NYSE/TSX: NT] received the 2004 Intrepid Salute Award last night in recognition of his business achievements and support of important philanthropic activities.

The 13th annual Salute to Freedom awards, sponsored by the Intrepid Foundation and held at its Intrepid Air-Sea-Space Museum in New York City, also honored U.S. Senator Hillary Rodham Clinton for her efforts in promoting and defending the values of freedom and democracy.

Widely recognized for bringing commercial high-technology into the U.S. Department of Defense, Owens was the architect of an advanced systems technology approach to military operations during his tenure in 1994 and 1995 as vice chairman of the Joint Chiefs of Staff, the second highest military officer position in the United States. Owens is a member of several philanthropic boards including the Carnegie Foundation and the Fred Hutchinson Cancer Research Center. He is also a member of the Canadian Council of Chief Executives and the Brookings Institution.

“I’m honored to be recognized by this most special organization, the Intrepid Foundation,” Owens said. “In my experience, there is no group of people more dedicated to the welfare of our servicemen and women than Intrepid.”

Owens chose to share the Intrepid Award ceremonies with friends, colleagues and business associates, including 12 individuals who have recently served in Iraq, Kuwait and Afghanistan. Nine are Nortel employees from Washington, Nashville, Tenn., Dallas, Detroit, and Raleigh, N.C. Additionally, Owens invited three marines, Corporal Angel Villalobos, Corporal Jason Finch, and Corporal Roy Thomas, all from the 2nd Battalion, 4th Marines, 1st Marine Division and recent recipients of the Purple Heart. He acknowledged their military contributions, saying, “These are the true heroes of our times, and I’m very proud to be here with them.”

Prior to becoming president and CEO of Nortel in April 2004, Owens’ private sector experience included serving as CEO and chairman of Teledesic LLC; and as president, chief operating officer and vice chairman of Science Applications International Corporation (SAIC), the largest employee-owned high-technology company in the United States. He also founded Extend America, a telecommunications venture that delivers wireless services to rural areas in the United States. Owens has written more than 50 articles on U.S. national security and authored two books, High Seas and Lifting the Fog of War.

The Intrepid Foundation provides oversight, administration and support for the mission of the Intrepid Sea-Air-Space Museum, and operates the Museum as a memorial, educational and charitable institution. Each year the Foundation honors the men and women of the United States Armed Forces through its Salute to Freedom ceremonies and dinner held at the museum.

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 (SEC); 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 Networks.

Contact for Press and Analysts:

Christina Warren
Nortel
(905) 863-4702
tinawarr@nortelnetworks.com

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