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Exhibit 99.1News Release
    
    (NORTEL LOGO)www.nortelnetworks.comFOR IMMEDIATE RELEASE
    
    August 20, 2004For more information:Investors:(888) 901-7286(905) 863-6049investor@nortelnetworks.com
    
    Media:Tina Warren(905) 863-4702tinawarr@nortelnetworks.com
 Nortel Networks Announces New Waiver from Export Development Canada TORONTO  Nortel Networks* Corporation [NYSE/TSX: NT] today announced that its
principal operating subsidiary, Nortel Networks Limited (NNL), has obtained a
new waiver from Export Development Canada (EDC) under the EDC
performance-related support facility (the EDC Support Facility). It is a
waiver of certain defaults related to the delay by the Company and NNL in
filing their respective 2003 Annual Reports on Form 10-K, Q1 2004 Quarterly
Reports on Form 10-Q and Q2 2004 Quarterly Reports on Form 10-Q (collectively,
the 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 relating to the delayed filings and the previously announced
restatement of the Companys and NNLs financial results. NNL has obtained a new waiver from EDC that will remain in effect until the
earlier of certain events including:  
    
    the date on which the Reports have been filed with the SEC; or
    
    11:59pm Eastern Daylight Time on September 30, 2004. The EDC Support Facility provides up to US$750 million in support, all
presently on an uncommitted basis. Once the Reports have been filed with the
SEC and the related breaches cured, the US$300 million revolving small bond
sub-facility of the EDC Support Facility would again become committed support.
As of August 15, 2004, there was approximately US$274 million of outstanding
support utilized under the EDC Support Facility, US$202 million of which was
outstanding under the small bond sub-facility. If the Company and NNL fail to file the Reports within the waiver period, there
can be no assurance that NNL would receive any further waivers or any
extensions of the waiver beyond its scheduled expiry date. If the waiver
announced today expires prior to the filing of such Reports, EDC would have the
right at such time to require NNL to cash collateralize the support outstanding
under the EDC Support Facility and to exercise its rights against the
collateral under related security agreements. As previously announced, the
Company and NNL expect to file the Reports by the end of the third quarter of
2004.




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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 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 andForm 10-K/Afiled 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.