Nortel's Chandran Resigns

TORONTO – John Roth, president and chief executive officer of Nortel Networks* [NYSE/TSE: NT], announced today that Clarence J. Chandran, chief operating officer, has resigned effective immediately in order to take additional time for the successful completion of his medical leave announced March 13, 2001. Roth said that Chandran has resigned as chief operating officer and as a director of the corporation.

The company announced on March 13 that, on the advice of his doctors, Chandran was taking a medical leave of absence for a six to 12-month period to recuperate fully from recent surgeries to address complications arising from an incident in June 1997 in which he was seriously injured in a stabbing attack in Singapore.

Roth said: “We regret that Clarence is resigning from the company but fully understand and support his decision. We wish him a speedy recovery and success in his future endeavors. On behalf of the board of directors and executive team, I want to thank Clarence for his dedication and contributions to Nortel Networks growth and development which helped make the company the world’s leading communications and Internet solutions supplier.”

Following the announcement of the Chandran resignation, Roth said that, in view of his own plans to retire in April 2002, the company will immediately launch a search for his successor as CEO.

Roth said: “Since Clarence is no longer available in our succession planning, I’ll be working with our board of directors to undertake a search for my successor. Our priority is to have my successor in place well before I retire to ensure a smooth and orderly transition. I will not be leaving until our annual meeting next year. This gives us plenty of time to recruit a successor and ensure a smooth transition.”

Nortel Networks Corp.