Nortel Pays for Deadline Blunders

    January 11, 2005

After three deadline blunders, Nortel finally completed a restatement of 2001 to 2003 results.

“The restatement has been a monumental task, both complex and demanding,” Bill Owens, Nortel’s current president and CEO stated.

“With the completion of our restatements we have a solid foundation on which to move forward with our business,” he said in a press release. “I want to thank all our employees and partners, who have tirelessly dedicated their time and efforts. The restatement has been a monumental task, both complex and demanding. I also want to thank our customers for their consistent support that has allowed us to maintain our business and strong financial position during this time and continue our expansion in critical markets. We are well-positioned for the future with an extensive global presence.”

“We have a number of important initiatives we expect to announce in the near future including those focusing on Asia and China, and those associated with converged, solutions-oriented networks,” continued Owens. “We also expect to make announcements regarding our progress in important new areas of business such as security and Federal solutions. We are committed to continued innovation leadership through our strong investment in R&D. We are focused on cash, cost and revenue to ensure our business model better serves our targeted operating performance. I am pleased with our cash performance in Q4, 2004 and we enter 2005 in a strong position.”

Nortel announced that 12 senior executives will return $8.6 million in bonuses in addition to the cancellation of their bonus plan to make up for incorrect figures.

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