June 22, 2009

Nortel Networks Corp.’s principal operating subsidiary—Nortel Networks Ltd. (NNL)—and certain of NNL’s subsidiaries (including Nortel Networks Inc.) have entered into a STALKING HORSE asset sale agreement with Nokia Siemens Networks B.V. (NSN) for the sale of substantially all of its CDMA business and LTE Access assets for $650 million US. The agreement with NSN specifies that at least 2500 employees would have the opportunity to continue with NSN.

In addition to sale agreement, Nortel announced it is advancing in its
discussions with external parties to sell its other businesses. The
company will assess other restructuring alternatives for these
businesses in the event it is unable to maximize value through sales.
In addition, Nortel will apply to delist its common shares and the NNL
preferred shares from trading on the Toronto Stock Exchange (TSX) and
expects that the creditor protection proceedings will ultimately result
in the cancellation of these equity interests.

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