TORONTO, Jan. 23 /PRNewswire-FirstCall/ - The board of directors of
Nortel(x) Networks Corporation (NYSE/TSX: NT) called the annual meeting of
shareholders (the "Meeting") to be held on May 2, 2006 in Toronto, Ontario.
The board of directors set the close of business on March 6, 2006 as the
record date for determining the shareholders of Nortel Networks Corporation
entitled to receive notice of the Meeting. Details of the location, time and
agenda for the Meeting will be included in the Nortel Networks Corporation
proxy circular and proxy statement.

    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 http://www.nortel.com.
For the latest Nortel news, visit http://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, and any related potential dilution of Nortel's common
shares; the findings of Nortel's independent review and implementation of
recommended remedial measures; the outcome of the ongoing 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
control over financial reporting and the conclusion of Nortel's management and
independent auditor that Nortel's internal control over financial reporting is
ineffective, which could continue to impact Nortel's ability to report its
results of operations and financial condition accurately and in a timely
manner; the impact of Nortel's and NNL's failure to timely file their
financial statements and related periodic reports, including Nortel's
inability to access its shelf registration statement filed with the United
States Securities and Exchange Commission (SEC); 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 and December 14, 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; increased consolidation among Nortel's customers and the
loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to
improve its capital structure and financial flexibility; 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; general stock market volatility; negative
developments associated with Nortel's supply contracts and contract
manufacturing agreements, including as a result of using a sole supplier for a
key component of certain optical networks solutions; 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; any undetected product defects, errors or
failures; the future success of Nortel's strategic alliances; and certain
restrictions on how Nortel and its president and chief executive officer
conduct business. 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.

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

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