Nortel to File and Report First Quarter 2006 Financial Results

Toronto (ots/PRNewswire) - Nortel Networks(x) Corporation
(NYSE/TSX:NT) today announced that in conjunction with its expected
filings early next week of its and Nortel Networks Limited's ("NNL")
first quarter of 2006 Quarterly Reports on Form 10-Q and
corresponding Canadian filings, the Company will issue a press
release (which will serve as its and NNL's status update pursuant to
the alternate information guidelines of the Ontario Securities
Commission) and then hold a teleconference/audio webcast on Tuesday,
June 6, 2006 at 8:30 am EDT to discuss the first quarter of 2006
results. The details of the call are provided below.

About Nortel

Nortel is a recognised 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. Our next-generation technologies, for both service
providers and enterprises, span access and core networks, support
multimedia and business-critical applications, and help eliminate
today's barriers to efficiency, speed and performance by simplifying
networks and connecting people with information. 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 statements in this press release may contain words such as
"could", "expects", "may", "anticipates", "believes", "intends",
"estimates", "plans", "envisions", "seeks" and other similar language
and are considered forward-looking statements or information under
applicable securities legislation. These statements are based on
Nortel's current expectations, estimates, forecasts and projections
about the operating environment, economies and markets in which
Nortel operates. These statements are subject to important
assumptions, risks and uncertainties, which are difficult to predict
and the actual outcome may be materially different. Further, actual
results or events could differ materially from those contemplated in
forward- looking statements as a result of the following (i) risks
and uncertainties relating to Nortel's restatements and related
matters including: Nortel's most recent restatement and two previous
restatements of its financial statements and related events; the
negative impact on Nortel and NNL of their most recent restatement
and delay in filing their financial statements and related periodic
reports (including the anticipated delay in filing the Quarterly
Reports on Form 10-Q for the first quarter of 2006) causing them to
breach their public debt indentures and obligations under their
credit facilities with the possibility that the holders of their
public debt or NNL's lenders would seek to accelerate the maturity of
that debt, and causing a breach of NNL's support facility with EDC
with the possibility that EDC would refuse to issue additional
support under the facility, terminate its commitments under the
facility or require NNL to cash collateralise all existing support;
legal judgments, fines, penalties or settlements, or any substantial
regulatory fines or other penalties or sanctions, related to the
ongoing regulatory and criminal investigations of Nortel in the US
and Canada; any significant pending civil litigation actions not
encompassed by Nortel's proposed class action settlement; any
substantial cash payment and/or significant dilution of Nortel's
existing equity positions resulting from the finalisation and
approval of its proposed class action settlement, or if such proposed
class action settlement is not finalised, any larger settlements or
awards of damages in respect of such class actions; any unsuccessful
remediation of Nortel's material weaknesses in internal control over
financial reporting resulting in an inability to report Nortel's
results of operations and financial condition accurately and in a
timely manner; the time required to implement Nortel's remedial
measures; Nortel's inability to access, in its current form, its
shelf registration filed with the United States Securities and
Exchange Commission (SEC), and Nortel's below investment grade credit
rating and any further adverse effect on its credit rating due to
Nortel's restatement of its financial statements; any adverse affect
on Nortel's business and market price of its publicly traded
securities arising from continuing negative publicity related to
Nortel's restatements; Nortel's potential inability to attract or
retain the personnel necessary to achieve its business objectives;
any breach by Nortel of the continued listing requirements of the
NYSE or TSX causing the NYSE and/or the TSX to commence suspension or
delisting procedures; any default in Nortel's filing obligations
extending beyond July 15, 2006 for the First Quarter 2006 Form 10-Qs,
causing any Canadian securities regulatory authority to impose an
order to cease all trading in Nortel's securities within the
applicable jurisdiction or to impose such an order sooner if Nortel
fails to comply with the alternate information guidelines of such
regulatory authorities; (ii) risks and uncertainties relating to
Nortel's business including: yearly and quarterly fluctuations of
Nortel's operating results; reduced demand and pricing pressures for
its products due to global economic conditions, significant
competition, competitive pricing practice, cautious capital spending
by customers, increased industry consolidation, rapidly changing
technologies, evolving industry standards, frequent new product
introductions and short product life cycles, and other trends and
industry characteristics affecting the telecommunications industry;
any material and adverse affects on Nortel's performance if its
expectations regarding market demand for particular products prove to
be wrong or because of certain barriers in its efforts to expand
internationally; any reduction in Nortel's operating results and any
related volatility in the market price of its publicly traded
securities arising from any decline in its gross margin, or
fluctuations in foreign currency exchange rates; any negative
developments associated with Nortel's supply contract and contract
manufacturing agreements including as a result of using a sole
supplier for key optical networking solutions components, and any
defects or errors in Nortel's current or planned products; any
negative impact to Nortel of its failure to achieve its business
transformation objectives; additional valuation allowances for all or
a portion of its deferred tax assets; Nortel's failure to protect its
intellectual property rights, or any adverse judgments or settlements
arising out of disputes regarding intellectual property; changes in
regulation of the Internet and/or other aspects of the industry;
Nortel's failure to successfully operate or integrate its strategic
acquisitions, or failure to consummate or succeed with its strategic
alliances; any negative effect of Nortel's failure to evolve
adequately its financial and managerial control and reporting systems
and processes, manage and grow its business, or create an effective
risk management strategy; and (iii) risks and uncertainties relating
to Nortel's liquidity, financing arrangements and capital including:
the impact of Nortel's most recent restatement and two previous
restatements of its financial statements; any acceleration under
their public debt indentures and credit facilities, which may result
in Nortel and NNL being unable to meet their respective payment
obligations; any inability of Nortel to manage cash flow fluctuations
to fund working capital requirements or achieve its business
objectives in a timely manner or obtain additional sources of
funding; high levels of debt, limitations on Nortel capitalising on
business opportunities because of credit facility covenants, or on
obtaining additional secured debt pursuant to the provisions of
indentures governing certain of Nortel's public debt issues and the
provisions of its credit facilities; any increase of restricted cash
requirements for Nortel if it is unable to secure alternative support
for obligations arising from certain normal course business
activities, or any inability of Nortel's subsidiaries to provide it
with sufficient funding; any negative effect to Nortel of the need to
make larger defined benefit plans contributions in the future or
exposure to customer credit risks or inability of customers to fulfil
payment obligations under customer financing arrangements; any
negative impact on Nortel's ability to make future acquisitions,
raise capital, issue debt and retain employees arising from stock
price volatility and further declines in the market price of Nortel's
publicly traded securities, or any future share consolidation
resulting in a lower total market capitalisation or adverse effect on
the liquidity of Nortel's common shares. For additional information
with respect to certain of these and other factors, see Nortel's
Annual Report on Form 10- K/A and other securities filings 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 Networks.

Nortel will host a teleconference/audio webcast to discuss first
quarter of 2006 results.

Time: 8:30 AM - 9:30 AM EDT on Tuesday, June 6, 2006.

To participate, please call the following at least 15 minutes
prior to the start of the event.

Teleconference: Webcast:
North America: +1-888-211-4395 http://www.nortel.com/q1earnings2006
International: +1-212-231-6007
Replay:
(Available one hour after the conference)
North America : +1-800-383-0935 Passcode: 21293763 #
International : +1-402-530-5545 Passcode: 21293763 #
Webcast: http://www.nortel.com/q1earnings2006

ots Originaltext: Nortel Networks
Im Internet recherchierbar: http://www.presseportal.de

Contact:
For further information: Media: Patricia Vernon, +1-905-863-1035,
patricve@nortel.com; Investors: +1-888-901-7286, +1-905-863-6049,
investor@nortel.com