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Exhibit 99.1 (NEWS RELEASE-NORTEL LOGO) www.nortel.comFOR IMMEDIATE RELEASE
    
    January 6, 2005For more information:Media
    
    InvestorsTina Warren
    
    (888) 901-7286(905) 863-4702
    
    (905) 863-6049tinawarr@nortelnetworks.com
    
    investor@nortelnetworks.com
 Nortel Provides Status UpdateExpects to Commence Filing of Financial Statements on January 10, 2005 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 15, 2004, June 29, 2004, July 13, 2004, July 27,
2004, August 10, 2004, August 19, 2004, September 2, 2004, September 16, 2004, September 30, 2004,
October 14, 2004, October 27, 2004, November 11, 2004, November 24, 2004, December 8, 2004,
December 21, 2004 and the Companys press release New York Stock Exchange Grants Nortel Three
Month Extension dated January 3, 2005, with the exception of the matters described below. Filing of Financial Statements Consistent with previous announcements, Nortel Networks Corporation expects that it will commence
to file its audited financial statements for the year 2003 prepared in accordance with United
States and Canadian generally accepted accounting principles, and related Annual Report on Form
10-K and Canadian filing, on January 10, 2005. In conjunction with the filing of these statements
and related periodic reports, the Company will issue a press release. In addition, the Company
plans to hold a conference call to discuss the filings followed by a media question and answer
session. The details of the conference call and media press conference will be provided in a
separate communication. The Company expects that its subsidiary NNL will file its audited financial statements for the year
2003 prepared in accordance with United States and Canadian generally accepted accounting
principles, and related Annual Report on Form 10-K and Canadian filing, shortly after the filing of
the Companys 2003 audited financial statements and related periodic reports. Further, the Company
expects that it and NNL will file their unaudited financial statements for the first and second
quarters of 2004, and related periodic reports, before the end of January 2005 and follow as soon
as practicable thereafter with the filing of their unaudited financial statements for the third
quarter of 2004 and related periodic reports and any required amendments to periodic reports for
prior periods.




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Outlook The Company now expects revenues in the fourth quarter of 2004 to be approximately US$2.8 billion. EDC Support Facility As previously announced, NNL obtained a further waiver on December 10, 2004 from Export Development
Canada (EDC) of certain defaults under the EDC performance-related support facility (the EDC
Support Facility) related to the delay by the Company and NNL in filing the Companys and NNLs
2003 Annual Reports on Form 10-K (the 2003 Annual Reports), and Quarterly Reports on Form 10-Q
for the first, second and third quarters of 2004 (the 2004 Quarterly Reports), in each case with
the U.S. Securities and Exchange Commission (the SEC), the trustees under the Companys and NNLs
public debt indentures and EDC. The waiver also applies to certain additional breaches under the
EDC Support Facility related to the delayed filings and the planned restatements and revisions to
the Companys and NNLs prior financial results (the Related Breaches). The current waiver from EDC will expire on January 15, 2005. As the Company and NNL do not expect
to deliver the 2004 Quarterly Reports by January 15, 2005, EDC will have the right, on such date,
unless EDC has granted a further waiver in relation to these delayed filings and the Related
Breaches, to terminate the EDC Support Facility, exercise certain rights against collateral or
require NNL to cash collaterize all existing support. While NNL is seeking a new waiver from EDC in
connection with the delay in filing the 2004 Quarterly Reports, there can be no assurance that NNL
will receive a new waiver or as to the terms of any such waiver. In addition, the Related Breaches will continue beyond the filing of the 2003 Annual Reports and
the 2004 Quarterly Reports. Accordingly, EDC will have the right (absent a further waiver of the
Related Breaches) to terminate or suspend the EDC Support Facility or exercise certain rights
against collateral notwithstanding the filing of the 2003 Annual Reports and the 2004 Quarterly
Reports. While NNL expects to seek a permanent waiver from EDC in connection with the Related
Breaches, there can be no assurance that NNL will receive a permanent waiver, or any waiver or as
to the terms of any such waiver. The EDC Support Facility provides up to US$750 million in support, all presently on an uncommitted
basis. The US$300 million revolving small bond sub-facility of the EDC Support Facility will not
become committed support until all of the delayed reports are filed with the SEC and NNL obtains a
permanent waiver of the Related Breaches. As of December 31, 2004, there was approximately US$296
million outstanding support utilized under the EDC Support Facility, approximately US$212 million
of which was outstanding under the small bond sub-facility. The Companys and NNLs next bi-weekly status update is expected to be released during the week of
January 17, 2005. ************************ 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 Nortels independent review
and planned restatement or revisions of its previously announced or filed financial results; the
resolution of the accounting issues announced on November 11, 2004, including the outcome of
discussions with the United States Securities and Exchange Commission; the impact of the management
changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet
Nortels filing obligations on support facilities and public debt obligations; any potential
delisting or suspension of the Companys or NNLs securities; the adverse resolution of litigation,
investigations, intellectual property disputes and similar matters; the sufficiency of Nortels
restructuring activities, including the work plan announced on August 19, 2004 as updated on
September 30, 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; fluctuations in Nortels operating results and general industry,
economic and market conditions and growth rates; the
communication by Nortels auditors of the existence of material weaknesses in internal controls;
Nortels ability to recruit and retain qualified employees; fluctuations in Nortels cash flow,
level of outstanding debt and current debt ratings; the use of cash collateral to Page 2




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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 flows; 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 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 or early settlement of Nortels purchase contracts; 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 Form 10-Q/A and Form 10-K/A filed 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. Page 3