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Exhibit 99.1 (NORTEL NETWORKS LOGO) www.nortelnetworks.com May 14, 2004For more information:Investors:
    
    Media:(888) 901-7286
    
    Tina Warren(905) 863-6049
    
    (905) 863-4702investor@nortelnetworks.com
    
    tinawarr@nortelnetworks.com
 Nortel Networks Receives Document Subpoena from U.S. Attorneys Office TORONTO Nortel Networks Corporation [NYSE/TSX: NT] today announced that Nortel
Networks has received a Federal Grand Jury Subpoena for the production of
certain documents, including financial statements and corporate, personnel and
accounting records, prepared during the period January 1, 2000 to date. The
Company has been advised that the materials sought are pertinent to an ongoing
criminal investigation being conducted by the U.S. Attorneys Office for the
Northern District of Texas, Dallas Division. The Company will fully cooperate
with the authorities in this matter. 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 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 of its previously announced or filed financial results;
the impact of the management changes announced on April 28, 2004; 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 covenants 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 financial covenants; 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,
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.