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Exhibit 99.1
 News Release
    

(NORTEL LOGO)www.nortel.comFOR IMMEDIATE RELEASE
    
    February 1, 2006For more information:Media
    
    InvestorsPatricia Vernon
    
    (888) 901-7286(905) 863-1035
    
    (905) 863-6049patricve@nortel.com
    
    investor@nortel.com
 Nortel announces US$1.3 Billion Financing Commitment
 
    
    US$1.3 Billion Credit Facility to Refinance Bond Maturity
    
    Cash Balance of US$3.0 Billion as at December 31, 2005
    
    Timing of Fourth Quarter & Full Year 2005 Financial Reporting




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Cash
  Financial Reporting
  About Nortel
 www.nortel.com. 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 ongoing 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); 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;
general stock market volatility; 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; any undetected product defects, errors or
failures; the




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future success of Nortels
strategic alliances; and certain restrictions on how Nortel and its president and chief executive
officer conduct business. For additional information with respect to certain of these and other
factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q 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.