##### 



Exhibit 99.1 News Release
    
    (NORTEL LOGO)
 www.nortel.com FOR IMMEDIATE RELEASE
    
    June 1, 2005
 For more information: Media
Bill Durling
(905) 863-1078bdurling@nortel.com
    
    Investors
(888) 901-7286
(905) 863-6049investor@nortel.com
 Nortel Reports Results for the First Quarter 2005Financial Reporting is Now Current
Nortel Provides Status Update  

Q1 2005 revenues of $2.54 billion, up year over year 4 percent

Q1 2005 net loss of $49 million, ($0.01) per common share on a diluted basis

Q1 2005 cash balance of $3.43 billion TORONTO  Nortel Networks* Corporation [NYSE/TSX: NT] today reported results for the first quarter
2005 prepared in accordance with accounting principles generally accepted in the United States in
U.S. dollars. As previously reported, commencing with the first quarter 2005 results Nortels new
reporting segments are GSM and UMTS Networks, Carrier Packet Networks, Enterprise Networks and CDMA
Networks. I am pleased that we are now current with our financial reporting; this is an important milestone
for Nortel as we move forward with our strategic plan. said Bill Owens, vice chairman and chief
executive officer, Nortel. First Quarter 2005 Results Revenues were $2.54 billion for the first quarter of 2005 compared to $2.44 billion for the first
quarter of 2004 and $2.62 billion for the fourth quarter of 2004. The Company reported a net loss
in the first quarter of 2005 of $49 million, or ($0.01) per common share on a diluted basis,
compared to net earnings of $59 million, or $0.01 per common share on a diluted basis, in the first
quarter of 2004 and net earnings of $133 million, or $0.03 per common share on a diluted basis, in
the fourth quarter of 2004. Net loss in the first quarter of 2005 included special charges of $21 million related to
restructuring activities. Net earnings in the fourth quarter of 2004 included $37 million of net
earnings from discontinued operations; special charges of $81 million related to restructuring
activities; and a benefit of approximately $133 million primarily related to customer financing
recoveries and settlements. Breakdown of First Quarter 2005 Revenues GSM and UMTS Networks revenues were $778 million, an increase of 20 percent compared with the
year-ago quarter and an increase of 18 percent sequentially. Carrier Packet Networks revenues were
$664 million, a decrease of 3 percent compared with the year-ago quarter and a decrease of 3
percent sequentially. Enterprise Networks revenues were $547 million, an increase of 2 percent
compared with the year-ago quarter and a decrease of 16 percent sequentially. CDMA Networks
revenues were $535 million, a decrease of 6 percent compared with the year-ago quarter and a
decrease of 13 percent sequentially.




---



##### 



Gross margin Gross margin was 42 percent of revenue in the first quarter of 2005. The performance was within the
Companys expected range of 40 to 44 percent of revenue. Selling, general and administrative (SG&A) SG&A expenses were $574 million in the first quarter of 2005, which included a cost of $60 million
in relation to restatement activities and investment in the Companys finance organization. This
compares to SG&A expenses of $542 million for the first quarter of 2004 and $542 million for the
fourth quarter of 2004. The fourth quarter of 2004 SG&A expenses included a benefit of $80 million
related to customer financing and trade bad debt recovery and a cost of $75 million in relation to
restatement activities and investment in the Companys finance organization. Research and development (R&D) R&D expenses were $474 million in the first quarter of 2005, compared to $471 million for the first
quarter of 2004 and $494 million for the fourth quarter of 2004. The R&D expenses in the first
quarter of 2005 decreased $20 million sequentially primarily as result of the Companys
restructuring plan. Other income (expense)  net Other income (expense)  net was a $46 million income for the first quarter of 2005, which
primarily related to a net foreign exchange gain of $26 million. Cash Cash balance at the end of the first quarter of 2005 was $3.43 billion, down from $3.69 billion at
the end of 2004. This decrease in cash from the end of 2004 was primarily driven by a cash outflow
from operations of $262 million which included cash proceeds from the sale of certain customer
financing notes receivables of $74 million, cash payments for restructuring of $128 million, and a
supplemental pension contribution of $55 million. Other items Financial Reporting Obligations; Stock Exchanges; Debt Securities; and EDC Support Facility With the filing by the Company and its principal operating subsidiary Nortel Networks Limited (NNL)
of their unaudited financial statements for the first quarter of 2005, and related Quarterly
Reports on Form 10-Q and corresponding Canadian filings, the Company and NNL are now current with
their financial reporting obligations. With the delivery of the filings to the New York and Toronto
stock exchanges, and their subsequent delivery to shareholders, the Company and NNL will be in
compliance with stock exchange listing requirements and their financial statement delivery
obligations under applicable securities laws. With the delivery of these filings to the trustees, the Company and NNL are also in compliance with
their obligations under their public debt indentures. In addition, NNL has obtained a permanent
waiver from Export Development Canada (EDC) of all remaining defaults and breaches under the EDC
performance-based support facility (EDC Support Facility). As a result, the $300 million small
bond sub-facility has been reclassified as committed support subject to the terms of the EDC
Support Facility. OSC Bi-Weekly Updates; Management Cease Trade Orders Todays announcements serve as a status update by the Company and NNL pursuant to the alternative
information guidelines of the Ontario Securities Commission (OSC). The Company and NNL reported
that there have been no material developments from prior status
updates and the Company's press release "Nortel Files First Quarter
2005 Financial Statements" dated May 31, 2005, with the exception of the
matters described herein. As previously announced, the OSC issued an order prohibiting certain
directors and officers and certain current and former employees of the Company and NNL from trading
in securities of the Company and NNL. Two other Canadian securities commissions issued similar
orders. Now that the Company and NNL are current in their financial reporting obligations for the
first quarter of 2005, the Company and NNL will be applying to have the management cease trade
orders revoked and will cease reporting under the OSCs alternative information guidelines.




---



##### 



Outlook Commenting on the Companys outlook, Owens said, This announcement marks a turning point for
Nortel. Our financial reporting is current. Gary Daichendt, the senior management team and I are
focused on business execution and operational performance. Our recent PEC, IBM and BT
announcements are further evidence that we are repositioning Nortel for the future and I look
forward to building on this momentum throughout the coming quarters. We are playing to win. Commenting on the Companys financial expectations, Peter Currie, executive vice president and
chief financial officer, Nortel, said, For the full year 2005, we continue to expect revenue to
grow compared to 2004, gross margins to be in the range of 40 to 44 percent of revenue and our
operating expenses as a percent of revenue to be approximately 35 percent by the end of the year.
For the second quarter of 2005, we expect solid revenue growth compared to the second quarter of
2004, margins to be at the low end of our expected range for 2005 due to mix of business and
spending to be lower as a percent of revenue compared to the second quarter of 2004. Recent Business Highlights Revenue Momentum:  

Nortel demonstrated continued success in the voice over
IP (VoIP) market with deployments at TeleCayman & VTR
Chile, and the selection by BT to upgrade to VoIP and
introduce Centrex IP across BT Retails contact centres
in the UK and India.

Nortels wireless momentum continued globally with
contracts for secure high speed mobile data services, 3G
mobile voice and data solutions, and wireless mesh
highlighted by China Mobile, Verizon Dominicana, HaiTel,
and Koreas Seowon University.

Partnering as main supplier with BT to deploy a
nationwide communications network that will be used to
provide secure managed voice and data services to the UK
Ministry of Defence and British Armed Forces. Using
Nortel multiservice switching and VoIP solutions, the
network is expected to provide improved security
responsiveness for the UK military and greater
operational and end user efficiencies.

Nortels commitment to Chinas government sector
continued with the decision by the City of Longkou, in
Chinas coastal province of Shandong, to deploy an
e-Government IP Telephony and data solution to enable
secure online services to its 620,000 citizens.

Continued cable operator momentum by working with
Cablevision company Lightpath to deploy their
metropolitan continuity service, a one-of-a-kind network
to ensure continued operations of New York
enterprises using an optical bypass private line
service from Nortel.

SR Technics Ireland, a major independent aviation
services provider, is deploying Nortel IP Telephony ,
Video Conferencing and Multimedia Collaboration
Capabilities making it one of the largest converged
communications solutions to be installed in Ireland to
date. Leading Next-Generation Solutions:  

Nortel along with mobilkom austria demonstrated High
Speed Downlink Packet Access (HSDPA) live test calls
with LG handsets and data cards connected to laptop
computers. Nortels HSDPA solution was deployed to allow
mobilkom austria to show how rapid FTP downloading,
real-time television broadcasts from Austrias GoTV, and
live web cam applications could change the future of
wireless communications.

The City of Richardson, Texas has implemented an IP
multimedia network with Nortel solutions which has
enabled its Information Services department to reduce
its annual budget by nearly eight percent while
increasing the performance of its network without the
need for additional expertise or people. This was
realized with an enhanced set of next generation
solutions newly introduced by Nortel which are designed
to enable enterprises to reduce deployment and operating
costs by as much as 50 percent based on Nortel
estimates.




---



##### 





Nortel continued to enhance customer solutions offered
with the introduction of the Business Communications
Manager (BCM) 50 to support smaller companies and remote
branch offices which met with immediate industry and
customer accolades from a diverse customer group
including Dominos Pizza, Apex Rentals (Calgary), Metro
Dodge Chrysler JEEP (Ottawa), and On Hold Marketing
(Richmond, Va.). New Business Partnerships:  

Nortel and IBM announced a strategic agreement designed
to support customized products for the network equipment
marketplace, and the establishment of a Nortel-IBM Joint
Development Center in Research Triangle Park, NC to
collaborate on the design and development of new
products and services.

A strategic action aimed at strengthening Nortels
position as a leading player in India with a $10 million
investment in Sasken Communications Technologies Limited
and an expanded services agreement to continue to work
together to develop new software and deploy Nortel
networking solutions. About Nortel Nortel is a recognized leader in delivering communications capabilities that enhance the human
experience, ignite and power global commerce, and secure and protect the worlds most critical
information. Serving both service provider and enterprise customers, Nortel delivers innovative
technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and
applications, and wireless broadband designed to help people solve the worlds greatest challenges.
Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at
www.nortel.com. For the latest Nortel news, visit www.nortel.com/news. 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 regulatory and criminal
investigations and civil litigation actions related to Nortels restatements and the impact any
resulting legal judgments, settlements, penalties and expenses could have on Nortels results of
operations, financial condition and liquidity, and any related potential dilution of Nortels
common shares; the findings of Nortels independent review and implementation of recommended
remedial measures; the outcome of the independent review with respect to revenues for specific
identified transactions, which review will have a particular emphasis on the underlying conduct
that led to the initial recognition of these revenues; the restatement or revisions of Nortels
previously announced or filed financial results and resulting negative publicity; the existence of
material weaknesses in Nortels internal control over financial reporting and the conclusion of
Nortels management and independent auditor that Nortels internal control over financial reporting
is ineffective, which could continue to impact Nortels ability to report its results of operations
and financial condition accurately and in a timely manner; the impact of Nortels and NNLs failure
to timely file their financial statements and related periodic reports, including Nortels
inability to access its shelf registration statement filed with the United States Securities and
Exchange Commission (SEC); ongoing SEC reviews, which may result in changes to Nortels and NNLs
public filings; the impact of management changes, including the termination for cause of Nortels
former CEO, CFO and Controller in April 2004; the sufficiency of Nortels restructuring activities,
including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December
14, 2004, including the potential for higher actual costs to be incurred in connection with
restructuring actions compared to the estimated costs of such actions; cautious or reduced spending
by Nortels customers; increased consolidation among Nortels customers and the loss of customers
in certain markets; fluctuations in Nortels operating results and general industry, economic and
market conditions and growth rates; fluctuations in Nortels cash flow, level of outstanding debt
and current debt ratings; Nortels monitoring of the capital markets for opportunities to improve
its capital structure and financial flexibility; Nortels ability to recruit and retain qualified
employees; the use of cash collateral to support Nortels normal course business activities; the
dependence on Nortels subsidiaries for funding; the impact of Nortels defined benefit plans and
deferred tax assets on results of operations and Nortels cash flow; the adverse resolution of
class actions, litigation in the ordinary course of business, intellectual property disputes and
similar matters; Nortels dependence on new product development and its ability to predict market
demand for particular products; Nortels 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 and consolidation in the telecommunications industry;
changes in regulation of the Internet; the impact of the credit risks of Nortels customers and the
impact of customer financing and commitments; stock market volatility generally and as a result of
acceleration of the settlement date of Nortels forward purchase contracts; negative developments
associated with Nortels supply contracts and contract manufacturing agreements, including as a
result of using a sole supplier for a key component of certain optical networks solutions; the
impact of Nortels 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; and the future success of Nortels strategic alliances. For additional information with
respect to certain of these and other factors, see the most recent Annual Report onForm 10-Kand
Quarterly Report onForm 10-Qfiled by Nortel with the SEC. Unless otherwise required by applicable
securities laws, Nortel 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, the Nortel logo and the Globemark are trademarks of Nortel.




---



##### 



Nortel will host a teleconference/audio webcast to discuss First Quarter 2005 Results. TIME:          8:30 AM  9:30 AM ET on Wednesday, June 1, 2005 To participate, please call the following at least 15 minutes prior to the start of the event. Teleconference:
North America:
International:
    
    888-211-4395
212-231-6007
    
    Webcast:http://www.nortel.com/q12005earnings
 Replay:
(Available one hour after the conference call until 5 :00 p.m. ET, June 14, 2005) North America :
International :
Webcast:
    
    800-383-0935
402-530-5545http://www.nortel.com/q12005earnings
    
    Passcode :
Passcode :
    
    21248030#
21248030#




---



##### 



(NORTEL LOGO) NORTEL NETWORKS CORPORATION
Consolidated Statements of Operations (unaudited) March 31,
    
    
    March 31,(US GAAP; millions of U.S. dollars, except per share amounts)
    
    2005
    
    
    2004Revenues
    
    $
    2,536
    
    
    $
    2,444Cost of revenues
    
    
    1,479
    
    
    
    1,391Gross profit
    
    
    1,057
    
    
    
    1,053Selling, general and administrative expense
    
    
    574
    
    
    
    542Research and development expense
    
    
    474
    
    
    
    471Amortization of intangibles
    
    
    2
    
    
    
    3Special charges
    
    
    21
    
    
    
    7(Gain) loss on sale of businesses and assets
    
    
    1
    
    
    
    Operating earnings (loss)
    
    
    (15
    )
    
    
    30Other income (expense)  net
    
    
    46
    
    
    
    86Interest expenseLong-term debt
    
    
    (50
    )
    
    
    (44
    )Other
    
    
    (3
    )
    
    
    (8
    )Earnings (loss) from continuing operations before income taxes,
minority interests and equity in net earnings (loss) of
associated companies
    
    
    (22
    )
    
    
    64Income tax benefit (expense)
    
    
    (16
    )
    
    
    9(38
    )
    
    
    73Minority interests  net of tax
    
    
    (14
    )
    
    
    (14
    )Equity in net earnings (loss) of associated companies  net of tax
    
    
    1
    
    
    
    (1
    )Net earnings (loss) from continuing operations
    
    
    (51
    )
    
    
    58Net earnings (loss) from discontinued operations  net of tax
    
    
    2
    
    
    
    1Net earnings (loss)
    
    $
    (49
    )
    
    $
    59Average shares outstanding (000s)  Basic
    
    
    4,337,513
    
    
    
    4,334,574Average shares outstanding (000s)  Diluted
    
    
    4,337,513
    
    
    
    4,378,559Basic earnings (loss) per common share from continuing operations
    
    $
    (0.01
    )
    
    $
    0.01 from discontinued operations
    
    
    0.00
    
    
    
    0.00Basic earnings (loss) per common share
    
    $
    (0.01
    )
    
    $
    0.01Diluted earnings (loss) per common share from continuing operations
    
    $
    (0.01
    )
    
    $
    0.01 from discontinued operations
    
    
    0.00
    
    
    
    0.00Diluted earnings (loss) per common share
    
    $
    (0.01
    )
    
    $
    0.01
 Please refer to our Quarterly Report onForm 10-Qfor the quarter
ended March 31, 2005 including the Notes to the
Consolidated Financial Statements (unaudited)




---



##### 



NORTEL NETWORKS CORPORATION
Consolidated Balance Sheets (unaudited) March 31,
    
    
    December 31,(US GAAP; millions of U.S. dollars, except for share amounts)
    
    2005
    
    
    2004ASSETSCurrent assetsCash and cash equivalents
    
    $
    3,431
    
    
    $
    3,686Restricted cash and cash equivalents
    
    
    81
    
    
    
    80Accounts receivable  net
    
    
    2,780
    
    
    
    2,551Inventories  net
    
    
    1,316
    
    
    
    1,414Deferred income taxes  net
    
    
    248
    
    
    
    255Other current assets
    
    
    424
    
    
    
    356Total current assets
    
    
    8,280
    
    
    
    8,342Investments
    
    
    148
    
    
    
    159Plant and equipment  net
    
    
    1,594
    
    
    
    1,651Goodwill
    
    
    2,260
    
    
    
    2,303Intangible assets  net
    
    
    75
    
    
    
    78Deferred income taxes  net
    
    
    3,706
    
    
    
    3,736Other assets
    
    
    694
    
    
    
    715Total assets
    
    $
    16,757
    
    
    $
    16,984LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilitiesTrade and other accounts payable
    
    $
    983
    
    
    $
    996Payroll and benefit-related liabilities
    
    
    462
    
    
    
    515Contractual liabilities
    
    
    506
    
    
    
    569Restructuring liabilities
    
    
    152
    
    
    
    254Other accrued liabilities
    
    
    2,869
    
    
    
    2,823Long-term debt due within one year
    
    
    1,290
    
    
    
    15Total current liabilities
    
    
    6,262
    
    
    
    5,172Long-term debt
    
    
    2,571
    
    
    
    3,862Deferred income taxes  net
    
    
    144
    
    
    
    144Other liabilities
    
    
    3,466
    
    
    
    3,189Total liabilities
    
    
    12,443
    
    
    
    12,367Minority interests in subsidiary companies
    
    
    629
    
    
    
    630Guarantees, commitments and contingenciesSHAREHOLDERS EQUITYCommon shares, without par value  Authorized shares: unlimited;
Issued and outstanding shares: 4,272,671,213 as of March 31, 2005
and 4,272,671,213 as of December 31, 2004
    
    
    33,840
    
    
    
    33,840Additional paid-in capital
    
    
    3,301
    
    
    
    3,282Accumulated deficit
    
    
    (32,632
    )
    
    
    (32,583
    )Accumulated other comprehensive income (loss)
    
    
    (824
    )
    
    
    (552
    )Total shareholders equity
    
    
    3,685
    
    
    
    3,987Total liabilities and shareholders equity
    
    $
    16,757
    
    
    $
    16,984
 Please refer to our Quarterly Report onForm 10-Qfor the quarter
ended March 31, 2005 including the Notes to the Consolidated Financial Statements (unaudited) Page 2




---



##### 



NORTEL NETWORKS CORPORATION
Consolidated Statements of Cash Flows (unaudited) March 31,
    
    
    March 31,(US GAAP; millions of U.S. dollars)
    
    2005
    
    
    2004Cash flows from (used in) operating activitiesNet earnings (loss) from continuing operations
    
    $
    (51
    )
    
    $
    58Adjustments to reconcile net earnings (loss) from continuing operations to
net cash from (used in) operating activities, net of effects from acquisitions
and divestitures of businesses:Amortization and depreciation
    
    
    82
    
    
    
    90Equity in net (earnings) loss of associated companies  net of tax
    
    
    (1
    )
    
    
    1Stock option compensation
    
    
    19
    
    
    
    15Deferred income taxes
    
    
    8
    
    
    
    (4
    )Other liabilities
    
    
    78
    
    
    
    60(Gain) loss on sale or write down of investments, businesses and assets
    
    
    6
    
    
    
    (33
    )Other  net
    
    
    (105
    )
    
    
    27Change in operating assets and liabilities
    
    
    (298
    )
    
    
    (554
    )Net cash from (used in) operating activities of continuing operations
    
    
    (262
    )
    
    
    (340
    )Cash flows from (used in) investing activitiesExpenditures for plant and equipment
    
    
    (54
    )
    
    
    (43
    )Proceeds on disposals of plant and equipment
    
    
    
    
    
    
    5Acquisitions of investments and businesses  net of cash acquired
    
    
    (2
    )
    
    
    (3
    )Proceeds on sale of investments and businesses
    
    
    83
    
    
    
    55Net cash from (used in) investing activities of continuing operations
    
    
    27
    
    
    
    14Cash flows from (used in) financing activitiesDividends paid by subsidiaries to minority interests
    
    
    (14
    )
    
    
    (9
    )Increase in notes payable
    
    
    20
    
    
    
    10Decrease in notes payable
    
    
    (26
    )
    
    
    (13
    )Repayments of long-term debt
    
    
    
    
    
    
    (97
    )Repayments of capital leases payable
    
    
    (1
    )
    
    
    (3
    )Issuance of common shares
    
    
    
    
    
    
    30Net cash from (used in) financing activities of continuing operations
    
    
    (21
    )
    
    
    (82
    )Effect of foreign exchange rate changes on cash and cash equivalents
    
    
    (35
    )
    
    
    13Net cash from (used in) continuing operations
    
    
    (291
    )
    
    
    (395
    )Net cash from (used in) in operating activities of discontinued operations
    
    
    36
    
    
    
    (3
    )Net increase (decrease) in cash and cash equivalents
    
    
    (255
    )
    
    
    (398
    )Cash and cash equivalents at beginning of period
    
    
    3,686
    
    
    
    3,997Cash and cash equivalents at end of period
    
    $
    3,431
    
    
    $
    3,599
 Please refer to our Quarterly Report onForm 10-Qfor the quarter ended March 31, 2005 including the Notes to the
Consolidated Financial Statements (unaudited) Page 3




---



##### 



Segment revenues The following table summarizes our revenues for the three months ended March 31, 2005 and
2004, respectively, by segment: For the three months ended March 31,2005
    
    
    2004
    
    
    $ Change
    
    
    % ChangeRevenuesCarrier Packet Networks
    
    $
    664
    
    
    $
    683
    
    
    $
    (19
    )
    
    
    (3
    )CDMA Networks
    
    
    535
    
    
    
    569
    
    
    
    (34
    )
    
    
    (6
    )GSM and UMTS Networks
    
    
    788
    
    
    
    656
    
    
    
    132
    
    
    
    20Enterprise Networks
    
    
    547
    
    
    
    534
    
    
    
    13
    
    
    
    2Other(a)
    
    
    2
    
    
    
    2
    
    
    
    
    
    
    
    Total revenues
    
    $
    2,536
    
    
    $
    2,444
    
    
    $
    92
    
    
    
    4
 (a)     Other represented miscellaneous business activities and corporate functions. The following table summarizes our quarterly and full year revenues for 2004, by segment: For the three months ended,March 31,2004
    
    
    June 30,2004
    
    
    September 30,2004
    
    
    December 31,2004
    
    
    For theYear2004RevenuesCarrier Packet Networks
    
    $
    683
    
    
    $
    724
    
    
    $
    533
    
    
    $
    686
    
    
    $
    2,626CDMA Networks
    
    
    569
    
    
    
    567
    
    
    
    511
    
    
    
    615
    
    
    
    2,262GSM and UMTS Networks
    
    
    656
    
    
    
    711
    
    
    
    543
    
    
    
    665
    
    
    
    2,575Enterprise Networks
    
    
    534
    
    
    
    578
    
    
    
    591
    
    
    
    651
    
    
    
    2,354Other(a)
    
    
    2
    
    
    
    10
    
    
    
    1
    
    
    
    (2
    )
    
    
    11Total revenues
    
    $
    2,444
    
    
    $
    2,590
    
    
    $
    2,179
    
    
    $
    2,615
    
    
    $
    9,828
 (a)     Other represented miscellaneous business activities and corporate functions. Geographic revenues The following table summarizes our geographic revenues for the three months ended March 31,
2005 and 2004, respectively, based on the location of the customer: For the three months ended March 31,2005
    
    
    2004
    
    
    $ Change
    
    
    % ChangeUnited States
    
    $
    1,146
    
    
    $
    1,217
    
    
    $
    (71
    )
    
    
    (6
    )EMEA(a)
    
    
    722
    
    
    
    596
    
    
    
    126
    
    
    
    21Canada
    
    
    114
    
    
    
    154
    
    
    
    (40
    )
    
    
    (26
    )Asia Pacific
    
    
    402
    
    
    
    347
    
    
    
    55
    
    
    
    16CALA(b)
    
    
    152
    
    
    
    130
    
    
    
    22
    
    
    
    17Consolidated
    
    $
    2,536
    
    
    $
    2,444
    
    
    $
    92
    
    
    
    4
 (a)     The Europe, Middle East and Africa region, or EMEA.(b)     The Caribbean and Latin America region, or CALA. Please refer to our Quarterly Report onForm 10-Qfor the quarter ended March 31, 2005
including the Notes to the Consolidated Financial Statements (unaudited). The 2004 comparative
financial information has been reclassified to reflect our new reporting segments. Page 4