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Exhibit 99.1 News Release
    
    (NORTEL NETWORKS LOGO)www.nortelnetworks.comFOR IMMEDIATE RELEASE
    
    September 16, 2004For more information:Media:
    
    Investors:Tina Warren
    
    (888) 901-7286(905) 863-4702
    
    (905) 863-6049tinawarr@nortelnetworks.com
    
    investor@nortelnetworks.com
 Nortel Networks Provides Status Update TORONTO  Nortel Networks* Corporation [NYSE/TSX: NT] and its principal
operating subsidiary, Nortel Networks Limited (NNL), today provided a status
update pursuant to the alternative information guidelines of the Ontario
Securities Commission. These guidelines contemplate that the Company and NNL
will normally provide bi-weekly updates on their affairs until such time as
they are current with their filing obligations under Canadian securities laws. The Company and NNL reported that there have been no material developments in
the matters reported in their status updates of June 2, 2004, June 29, 2004,
July 13, 2004, July 27, 2004, August 10, 2004, August 19, 2004 and September 2,
2004 with the exception of the matters described below. Business Outlook The Company expects its revenues in the third quarter of 2004 to be lower than
the Companys previously announced preliminary unaudited revenues for the
second quarter of 2004. On a full year basis, the Company now expects that its
2004 revenue percentage growth over 2003 will be in the mid single digits and
that the overall communications equipment market will grow faster than that. Bill Owens, president and chief executive officer, Nortel Networks, said, As
we work through this challenging transition period, completing our restatement
activity and implementing the new strategic plan for the Company, I am
confident that Nortel Networks will be positioned to compete strongly in all of
our markets with the right products and services as we move into 2005. Other Matters Status of Civil Proceedings As previously announced, on June 30, 2004 the United States District Court in
the Southern District of New York signed Orders which consolidated the 27 class
action complaints that had been filed against Nortel Networks, and certain
former officers, in the Southern District of New York and appointed lead
counsel and lead plaintiffs in respect of the consolidated action. On
September 10, 2004, a consolidated class action complaint was filed alleging
that the named defendants (Nortel Networks, certain current directors and
certain former officers) violated U.S. securities laws, including by making
materially false and misleading statements. ****************




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Page 2 As a global innovation leader, Nortel Networks enriches consumer and business
communications worldwide by offering converged multimedia networks that
eliminate the boundaries among voice, data and video. These networks use
innovative packet, wireless, voice and optical technologies and are underpinned
by high standards of security and reliability. For both carriers and
enterprises, these networks help to drive increased profitability and
productivity by reducing costs and enabling new business and consumer services
opportunities. Nortel Networks does business in more than 150 countries. For
more information, visit Nortel Networks on the Web at www.nortelnetworks.com or
www.nortelnetworks.com/media_center. 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 planned restatement or revisions of its previously announced or filed
financial results; the impact of the management changes announced on April 28,
2004 and August 19, 2004; the impact of the inability to meet Nortel Networks
filing obligations on 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 controls; Nortel Networks
ability to recruit and retain qualified employees; fluctuations in Nortel
Networks cash flow, level of outstanding debt and current debt ratings; 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 and Nortel Networks cash flows; 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; 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, investigations, 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.