Claude Mongeau and John David Watson Appointed to Nortel Board of Directors

Toronto (ots/PRNewswire) - Nortel(x) Networks Corporation
(NYSE/TSX: NT) announced the appointment of Claude Mongeau and John
David Watson to the Company's board of directors today at its Annual
Shareholders Meeting in Toronto.

Previously serving directors re-elected to the board today are
Jalynn Hamilton Bennett, Dr. Manfred Bischoff, The Hon. James Baxter
Hunt Jr., John Alan MacNaughton, The Hon. John Paul Manley, Richard
David McCormick, Harry Jonathan Pearce, and Mike Svetozar
Zafirovski. Harry J. Pearce remains chairman of the board.

The Company acknowledges the years of contribution and service to
Nortel by outgoing board directors Robert Ellis Brown, John Edward
Cleghorn , Robert Alexander Ingram and Ronald Walter Osborne who did
not stand for re-election at the annual meeting.

"Nortel and its shareholders owe Robert Brown, John Cleghorn,
Robert Ingram and Ronald Osborne a great deal of gratitude for their
dedication in striving to rebuild one of the industry's greatest
companies," said Mike Zafirovski, Nortel president and CEO. "We
welcome the addition of directors Claude Mongeau and John Watson
who, together with the rest of our board and my energized executive
team, give me complete confidence in our ability to position Nortel
for profitability and long-term growth."

The directors elected to the board of directors are also directors
of Nortel Networks Limited and will hold their position until the
earliest of the close of the next annual meeting of shareholders,
the date he or she ceases to be a director by operation of law, or
the date he or she resigns. The current Nortel board of directors
has a total of 10 directors.

Claude Mongeau

Claude Mongeau has been the executive vice-president and chief
financial officer of Canadian National Railway Company, a North
American railway company, since October 2000. Prior to that
appointment, Mr. Mongeau was senior vice-president and chief
financial officer from October 1999. Mr . Mongeau is also chairman of
the Audit and a member of the Governance Committees of SNCLavalin
Group Inc. He is also a director of the Pointe-à- Callière Museum and
of Forces Avenir. Mr. Mongeau was also a director of 360networks
Corporation (or 360networks).

John D. Watson

John D. Watson has been executive vice-president and chief
financial officer of EnCana Corporation (or EnCana), an Alberta,
Canada based oil and gas exploration and production company since
its formation in 2002 and until his retirement on February 28, 2006.
Prior to that appointment, Mr. Watson was vice-president finance and
chief financial officer of Alberta Energy Company Ltd., a
predecessor company to EnCana since 1987. Overall, he has been with
EnCana for 30 years. He is also a member of the Audit Committee of
the Province of Alberta, chair of the Calgary Police Commission and
a director of UTS Energy Corporation. In 2005, he was granted the
designation of ICD.D by the Institute of Corporate Directors.

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. 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 ", "targets", "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; 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 U.S. 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 finalization and approval of its
proposed class action settlement, or if such proposed class action
settlement is not finalized, 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 restatements 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; (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;
the sufficiency of recently announced restructuring actions,
including the potential for higher actual costs to be incurred in
connection with these restructuring actions compared to the
estimated costs of such actions and the ability to achieve the
targeted cost savings and reductions of Nortel's unfunded pension
liability deficit; 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 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 capitalizing 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
fulfill 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 capitalization 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 Form10- K/A, Quarterly Report
on Form 10-Q 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.

ots Originaltext: Nortel Networks
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Contact:
For further information: Media: Jay Barta, (+972)-685-2381,
jbarta@nortel.com; Investors: +1(888)-901-7286, +1-(905)-863-6049,
investor@nortel.com