TORONTO -- Nortel Networks Corporation (NYSE:NT)(TSX:NT) today provided an update on certain activities related to the delay in the filing of its 2003 financial statements and those of its principal operating subsidiary Nortel Networks Limited ("NNL"). Nortel Networks will provide further updates as it moves through the process of filing its 2003 financial statements. EDC Waiver
NNL has obtained a waiver from Export Development Canada ("EDC") to permit continued access by NNL to the EDC performance-related support facility in accordance with its terms while the Company and NNL complete their filing obligations with the U.S. Securities and Exchange Commission (the "SEC"). As previously announced, both the Company and NNL will delay the filing of their respective annual reports on Form 10-K for the year ended Dec. 31, 2003 ("2003 Form 10-K") to a date beyond March 30, 2004. The waiver will remain in effect until the earliest of certain events including:

EDC may also suspend its obligation to issue NNL any additional support if events occur that have a material adverse effect on NNL's business, financial position or results of operation. NNL and EDC have also agreed to amend the support facility to give EDC this suspension right beyond the waiver period. There can be no assurance that the Company or NNL will file its 2003 Form 10-K within the waiver period or if they fail to do so, that NNL would receive an extension of the waiver beyond its scheduled expiry date. The waiver also applies to certain other potential breaches by NNL which may arise under the support facility in relation to the Company's need to revise its previously announced unaudited results for the year ended Dec. 31, 2003, and the results reported in certain of its quarterly reports for 2003, and to restate its previously filed financial results for one or more earlier periods. The EDC support facility provides for up to US$300 million of committed support and US$450 million of uncommitted support and, as of Dec. 31, 2003, there was approximately US$334 million of outstanding support under this facility. First Quarter 2004 Results Announcement
The Company confirmed it plans to announce limited preliminary unaudited financial results for the first quarter of 2004 on April 29, 2004 and to hold a conference call to discuss its results after they are publicly announced. Annual Shareholders' Meeting
The Company also announced due to the delay in the filing of its 2003 financial statements, it is postponing its previously announced Annual Shareholders' Meeting originally scheduled for April 29, 2004 to a later date. The new date will be announced, and the meeting will be held, as soon as practicable after the filing of the 2003 financial statements. Nortel Networks Corp.