Nortel Declares Dividend

TORONTO -- The board of directors of Nortel Networks Limited today declared a dividend on the outstanding Cumulative Redeemable Class A Preferred Shares Series 5 (TSX:NTL.PR.F), the amount of which will be calculated by multiplying (a) the average prime rate of Royal Bank of Canada and Toronto-Dominion Bank during November 2002 by (b) the applicable percentage for the dividend payable for October 2002 as adjusted up or down by a maximum of 4 percentage points (subject to a maximum applicable percentage of 100 percent) based on the weighted average trading price of such shares during November 2002, in each case as determined in accordance with the terms and conditions attaching to such shares. The dividend is payable on December 12, 2002 to shareholders of record at the close of business on November 29, 2002. The board of directors of Nortel Networks Limited also declared a dividend on the outstanding Non-cumulative Redeemable Class A Preferred Shares Series 7 (TSX:NTL.PR.G), in the amount of Cdn$0.30625 per share. The dividend is payable on December 2, 2002 to shareholders of record at the close of business on November 11, 2002. Nortel Networks Corp.