Nortel Networks Announces OSC Management Cease Trade Order



TORONTO -/May 18, 2004 Wi-Fi Technology News/-?Nortel Networks* Corporation [NYSE/TSX: NT] announced (May 17, 2004) that the Ontario Securities Commission (the ?OSC?) has issued a temporary order that prohibits, effective immediately, all trading by directors, officers and certain current and former employees in the securities of the Company and its principal operating subsidiary, Nortel Networks Limited (?NNL?).

Under the procedures of the OSC, this temporary order is expected to be replaced by a permanent order within the next 15 days. The permanent management cease trade order is expected to be in place until two full business days following receipt by the OSC of all filings that the Company and NNL are required to make pursuant to Ontario securities laws. The Company expects that securities commissions in certain other provinces will also issue similar orders with respect to residents in those jurisdictions. Under the guidelines pursuant to which this management cease trade order was issued, Nortel Networks expects to generally provide bi-weekly updates on the affairs of the Company.

On April 28, 2004, Nortel Networks had announced the possibility of a management cease trade order being issued as a result of the Company?s and NNL?s inability to file their financial statements in a timely manner.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at http://www.nortelnetworks.com