##### 



Exhibit 99.1

News Release
    
    (NORTEL NETWORKS LOGO)


www.nortelnetworks.comFOR IMMEDIATE RELEASE
    
    April 5, 2004For more information:Investors:
    
    Media:(888) 901-7286
    
    Tina Warren(905) 863-6049
    
    (905) 863-4702investor@nortelnetworks.com
    
    tinawarr@nortelnetworks.com


Nortel Networks Updates Status of SEC Inquiry

TORONTO  Nortel Networks* Corporation [NYSE/TSX: NT] today announced that the
Securities and Exchange Commission (the SEC) has issued a formal order of
investigation in connection with the Companys previous restatement of its
financial results for certain periods, as announced in October 2003, and the
Companys announcements in March 2004 regarding the likely need to further
revise certain previously announced results and restate previously filed
financial results for one or more earlier periods.

The matter has been the subject of an informal SEC inquiry. As previously
announced, an independent review is also being undertaken by the Nortel
Networks Audit Committee.

Nortel Networks has been fully cooperating with the SEC and will continue to do
so in order to bring the inquiry to a conclusion as promptly as possible.

Nortel Networks is an industry leader and innovator focused on transforming how
the world communicates and exchanges information. The Company is supplying its
service provider and enterprise customers with communications technology and
infrastructure to enable value-added IP data, voice and multimedia services
spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical
Networks. As a global company, Nortel Networks does business in more than 150
countries. More information about Nortel Networks can be found on the Web at
www.nortelnetworks.com.

Certain information included in this press release is forward-looking and is
subject to important risks and uncertainties. The results or events predicted
in these statements may differ materially from actual results or events.
Factors which could cause results or events to differ from current expectations
include, among other things: the outcome of Nortel Networks independent review
and any further restatement of its previously announced or filed financial
results; the impact of the inability to meet Nortel Networks filing obligations
on credit and support facilities and public debt obligations; the sufficiency
of Nortel Networks restructuring activities, including the potential for higher
actual costs to be incurred in connection with restructuring actions compared
to the estimated costs of such actions; continued reductions in spending by
Nortel Networks customers; fluctuations in Nortel Networks operating results
and general industry, economic and market conditions and growth rates; the
communication by Nortel Networks auditors of the existence of material
weaknesses in internal control; Nortel Networks ability to recruit and retain
qualified employees; fluctuations in Nortel Networks cash flow, level of
outstanding debt and current debt ratings; Nortel Networks ability to meet the
financial covenant in its credit facilities; the use of cash collateral to
support Nortel Networks normal course business activities; the dependence on
Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined
benefit plans and deferred tax assets on results of operations, Nortel Networks
cash flows and compliance with its financial covenant; Nortel Networks
dependence on new product development and its ability to predict market demand
for particular products; Nortel Networks ability to integrate the operations
and technologies of acquired businesses in an effective manner; the impact of
rapid technological and market change; the impact of price and product
competition; barriers to international growth and global economic conditions,
particularly in emerging markets and including interest rate and currency
exchange rate fluctuations; the impact of rationalization in the
telecommunications industry; changes in regulation of the Internet; the impact
of the credit risks of Nortel Networks customers and the impact of customer
financing and commitments; stock market volatility generally and as a result of
acceleration of the settlement date or early settlement of Nortel Networks
purchase contracts; risks associated with a consolidation of Nortel Networks
common shares; the impact of Nortel Networks supply and outsourcing contracts
that contain delivery and installation provisions, which, if not met, could
result in the payment of substantial penalties or liquidated damages; the
future success of Nortel Networks strategic alliances; and the adverse
resolution of litigation, intellectual property disputes and similar matters.
For additional information with respect to certain of these and other factors,
see the most recent Form 10-Q/A and Form 10-K/A filed by Nortel Networks with
the United States Securities and Exchange Commission. Unless otherwise required
by applicable securities laws, Nortel Networks disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

-end-

*Nortel Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks.