Terry Hungle resigns as chief financial officer; Frank Dunn to fill in

February 11, 2002

2 Min Read

TORONTO -- Nortel Networks (NYSE:NT)(TSE:NT.) today announced the resignation of Terry Hungle, its recently appointed chief financial officer. The U.S. Securities and Exchange Commission and the Ontario Securities Commission have been voluntarily notified of the circumstances surrounding certain personal investment transactions carried out in 2001 by Hungle in the Nortel Networks U.S. Long-Term Investment (401k) Plan. These transactions occurred outside the trading windows imposed by the Corporation upon certain employees, including Hungle, and prior to news releases issued by the Corporation on March 27, 2001 and December 21, 2001. The Investment Plan is a contributory savings plan that allows employees to invest (through payroll deductions and defined corporate contributions) in a number of diversified investment funds. In March 2001 (at which time Hungle was vice-president, finance and business development - Americas), Hungle transferred an investment (of approximately US$78,500) from a stock fund investing primarily in the Nortel Network's common shares to a fixed income fund. In December 2001, Hungle transferred an investment (of approximately US$86,300) from the fixed income fund to the stock fund. Nortel Networks also announced today that, pending the appointment of a new chief financial officer, Frank Dunn, president and chief executive officer, Nortel Networks, was also appointed acting chief financial officer. Dunn served as Nortel Networks chief financial officer from February 1, 1999 to October 31, 2001 prior to his appointment as president and chief executive officer on November 1,2001. Dunn said, "I will be working with the board of directors to appoint a new chief financial officer. This matter is unfortunate but the actions we have taken are in the best interests of Nortel Networks. Let me emphasize that this matter solely relates to the personal investment transactions made by Terry Hungle and does not relate to the business, operations or financials of Nortel Networks."Nortel Networks Corp.

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