Nortel Launches Discussion Series to Examine Impact of Communications

Nortel Launches Discussion Series to Examine Impact of Communications Convergence on Public Policy and Society

    Business Editors/Government Writers/Technology Editors

    WASHINGTON--(BUSINESS WIRE)--March 30, 2005--

First Event to Feature Telecommunications Industry Executives and Authorities
    Nortel (NYSE:NT) (TSX:NT) today announced that it will host a series of discussions examining the power of convergence and its economic, public policy and social ramifications.
    The series, entitled "Perspectives on the Power of Telecommunications Convergence and Solving the Policy Conundrum," begins today on Capitol Hill. Nortel's president of Global Operations, Sue Spradley, will lead the discussion as panelists explore the convergence phenomenon and its technological and policy enablers.
    Through convergence, multiple voice and data networks are converged into a single network based on Internet Protocol (IP), a standardized method for transmitting all information across the Internet in packets of data. A converged network delivers voice, data, video and other applications together to provide business and consumers with a range of communications options that can be personalized for 'anywhere, anytime' secure access using 'any' communications device -- computer, PDA or cell phone.
    "Convergence is much more than a new technology innovation," Spradley said. "It's a catalyst for societal change that affects the way we live, work and play."
    Nortel plans to host these discussions periodically throughout the year bringing together policymakers, industry executives and other subject matter experts.
    "Understanding the impact of technological convergence is vital as Congress and the FCC wrestle with the legislative and regulatory implications of the convergence phenomenon," said Ray Strassburger, vice president, Global Government Relations, Nortel. "We hope over the next months that these discussions will add important information and perspective to the policy debates."
    Nortel's 'kickoff' event takes place today, March 30, 2005, in room B-339 of the Rayburn House Office Building at noon local (Eastern) time. Other speakers at the kickoff event will include Randy May, Senior Fellow and Director of Communications Policy Studies at the Progress and Freedom Foundation and Link Hoewing, Assistant Vice President, Internet Technology Policy and Business Support Planning, Verizon Communications.

    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 regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; 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; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's ability to recruit and retain qualified employees; 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 flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; 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 and consolidation 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, which is currently not available, of Nortel's forward 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 Annual Report on Form 10-K and Quarterly Report on Form 10-Q 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.

--30--BD/da*

CONTACT: Nortel Ann Fuller, 613-768-1208 email: afuller@nortel.com or John Pappas, 202-715-1514 email: john.pappas@dittus.com

KEYWORD: TEXAS DISTRICT OF COLUMBIA INDUSTRY KEYWORD: GOVERNMENT LEGAL/LAW TELECOMMUNICATIONS NETWORKING PRODUCT SOURCE: Nortel

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