Nortel President, COO Resigns

TORONTO -- Nortel Networks Corporation (NYSE:NT - News; TSX:NT - News) today announced the resignation of Gary Daichendt, president and chief operating officer of the Company and Nortel Networks Limited, effective June 10, 2005. Bill Owens, vice chairman and chief executive officer, will assume these responsibilities.

"Gary has made a major contribution to Nortel during his time here and has added value to our strategic initiatives and business plan," said Owens. "It has become apparent to Gary and me, however, that we have divergent management styles and our business views differ. I respect him for his decision and I wish him every success in his future endeavors."

"While making the decision to leave Nortel was a difficult one, my time with the Company has confirmed that Nortel has world class technology and people," said Daichendt.

"You can be certain that we will continue to focus on operational excellence as a broad-based carrier and enterprise networking company," said Owens. "We have a strong business and technology team with significant depth and experience that we will continue to build on."

Nortel also announced that Gary Kunis, chief technology officer, who joined Nortel following the appointment of Daichendt, will also be leaving the Company. Kunis previously worked alongside Daichendt at Cisco Systems.

Nortel Networks Ltd.