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Nortel Issues Encouraging Words

TORONTO – The following open letter to stockholders was released today by John Roth, president and chief executive officer, Nortel Networks Corp. (NYSE/Toronto: NT):

To Nortel Networks Shareholders:

Much has been said and written about Nortel Networks in recent weeks. I recognize that this has been of concern to our shareholders. It has also been a concern to me and all those associated with the company. That is why I want to review and update you on what has transpired since we issued a press release on February 15 revising our guidance for the first quarter and year 2001.

When issuing that release, we stated that Nortel Networks was not immune to the current economic downturn in the United States. Based on previous experience, we had anticipated a longer lead-time for the effects of a downturn to be felt by our sector and by our company. The current downturn occurred with unprecedented suddenness and severity. Our decision to revise guidance on February 15 occurred as soon as the effects of this downturn were clear to us.

We were among the first to recognize the severity of the downturn occurring in the U.S., our largest market. Since February 15, a growing number of technology companies with heavy dependence on the U.S. market have also revised their forecasts. This is clearly a broad market/economic slowdown that has affected companies in our sector with unprecedented speed.

At the same time, I want you to know that our position as an industry leader and innovator remains strong, despite the unfavorable economic and market conditions we are facing. Our fundamentals remain sound and we offer an industry-leading portfolio of end-to-end communications solutions. We have a diverse and strong base of customers throughout the world. And we have some of the most talented and committed people in the world working to provide those customers with breakthrough technologies that create value and competitive advantage for our customers around the world.

Where the class action lawsuits resulting from our February 15 announcement are concerned, our shareholders, customers and employees should also know that we will defend ourselves vigorously. Quite simply, we believe the allegations in the lawsuits against your company in Canada and the United States are without merit. I can assure you that your company is committed to maintaining the highest integrity and credibility of business practices. The way in which we conduct our business is as important as the business we conduct.

On behalf of everyone at Nortel Networks, I want to thank our shareholders, customers, suppliers and friends for their expressions of support and encouragement. We greatly value our hard-earned reputation for integrity, ethical behavior and corporate citizenship. I want to assure you that the senior executives of Nortel Networks and myself, as significant shareholders in the company, are fully committed to delivering the long-term performance and results you have come to expect of your company.

Sincerely,

John Roth
President and Chief Executive Officer
Whos on First? 12/4/2012 | 8:47:51 PM
re: Nortel Issues Encouraging Words To Advertisers and Shareholders:

Much has been said and written about Light Reading in recent weeks. I don't give two hoots that this has been of concern to all good people who work in this industry - you are all "Whiners" as I like to say. It has only been a concern to my VC backers, and the reading public, but is not a concern to me and all those associated with the company.

That is why I want to review and update you on what has transpired since we issued a series of completely inaccurate and scathing editorials since September of last year.

We at Lightreading now have 5 major lawsuits against us, largely brought to bear from companies who have taken offense to our practice of liberal inaccuracies, and our pandering to our advertisers. As I have mentioned on several occasions, we are a for-profit enterprise, and will continue to use this excuse to bribe monies from non-advertisers.

In related news, we have lost 4 advertisers on the site in protest of our policies, but have several new ones that are lining up to buy us off.

In conclusion, may I leave you with these words: Cisco sucks, Lucent sucks, Zaffire sucks, Ironbridge sucked, Mayan sucks, and Fujitsu sucks, and so all the other companies who either ourslves, our backers, or our advertisers hate; and we will do our best, using funding from the abovementioned companies' competitors; to destroy them by the end of the second quarter of this year.

You have my word,
calsurf23 12/4/2012 | 8:47:51 PM
re: Nortel Issues Encouraging Words Bravo, John!
The legions of BLAC lawyers that came out of the woodwork are simply unbelievable!
Hadn't you folks noticed that NT is NOT the only company that has guided earnings downward? It's a MACROenvironmental downturn, boys and girls, and piling one on top of the other to line up to waste EVERYONE's time and resources with frivolous lawsuits is just that, a waste...
As a NT shareholder, is there some legal recourse that NT can file countersuits against these worms for time and effort spent defending against baseless "class action" lawsuits...
I'm surprised that all these "Dewey Cheatham & Howe" law firms haven't filed "class action" lawsuits against every single publicly traded company that has experienced a share price reduction or HAD TO issue downward guidance releases in compliance with Reg FD???
Unbelievable....
(THERE, now I feel better....)
calsurf23 12/4/2012 | 8:47:51 PM
re: Nortel Issues Encouraging Words Bravo, John!
The legions of BLAC lawyers that came out of the woodwork are simply unbelievable!
Hadn't you folks noticed that NT is NOT the only company that has guided earnings downward? It's a MACROenvironmental downturn, boys and girls, and piling one on top of the other to line up to waste EVERYONE's time and resources with frivolous lawsuits is just that, a waste...
As a NT shareholder, is there some legal recourse that NT can file countersuits against these worms for time and effort spent defending against baseless "class action" lawsuits...
I'm surprised that all these "Dewey Cheatham & Howe" law firms haven't filed "class action" lawsuits against every single publicly traded company that has experienced a share price reduction or HAD TO issue downward guidance releases in compliance with Reg FD???
Unbelievable....
(THERE, now I feel better....)
Sperry Thomas 12/4/2012 | 8:47:50 PM
re: Nortel Issues Encouraging Words I luv it - we have some comedians in our industry!

I have followed this site for more than a year. Ain't nothing gonna change - the Lightreading guys are making a ton of money driving this yellow journalism.

Short of Steve Saunder being incarcerated, you can't stop the muckraking machine. I don't care if you're Cisco OR Nortel OR Lucent, or one of those puny start-ups.

I look up at the advertisers along the borders of this page - Coriolis, Digital Optics, Light Logic, Sycamore - they all can look forward to GREAT editorials!
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