Cease-trade order against Nortel officers

Decisions and Freeze and cease trade orders Securities

Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued a cease-trade order on March 27, 2006 against Robert Ellis Brown, Philippe Morin, Chahram Bolouri, Diane Malboeuf and Brian William McFadden with respect to the securities of Nortel Networks Corporation and Nortel Networks Limited.

The above-mentioned persons, all of whom live in Québec, have served or are serving as directors or senior executives of the companies, or have been insiders since the companies’ latest financial statements were filed, namely, those dated September 30, 2005.

In a news release dated March 10, 2006, Nortel Networks Corporation and Nortel Networks Limited announced that they were delaying the filing of their 2005 annual reports until the end of April 2006 in order to restate certain prior period results.

According to the news release, both companies “will restate their financial results for 2003, 2004 and the first nine months of 2005, and will have adjustments to periods prior to 2003, primarily due to revenue incorrectly recognized in prior periods that should have been deferred to future periods.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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