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Exhibit 99.1
 News Release
    
    (NORTEL LOGO)
 www.nortel.com
 FOR IMMEDIATE RELEASE
    
    April 20, 2006For more information:Media
    
    InvestorsPatricia Vernon
    
    888-901-7286905-863-1035
    
    905-863-6049patricve@nortel.com
    
    investor@nortel.com
 Nortel Provides Status Update
  Restatements
   Timing of Filing of Financial Statements




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Page 2  Credit Facility; EDC Support Facility; Debt Securities
      OSC Management Cease Trade Order




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Page 3 About Nortel
 www.nortel.com/news
 Certain statements in this press release may contain words such as could, expects, may,
anticipates, believes, intends, estimates, plans, envisions, seeks and other similar
language and are considered forward-looking statements or information under applicable securities
legislation. These statements are based on Nortels current expectations, estimates, forecasts and
projections about the operating environment, economies and markets in which Nortel operates. These
statements are subject to important assumptions, risks and uncertainties, which are difficult to
predict and the actual outcome may be materially different. Although Nortel believes expectations
reflected in such forward-looking statements are reasonable based upon the assumptions in this
press release, they may prove to be inaccurate and consequently Nortels actual results could
differ materially from its expectations set out in this press release. Further, actual results or
events could differ materially from those contemplated in forward-looking statements as a result of
the following (i) risks and uncertainties relating to Nortels restatements and related matters
including: Nortels recently announced restatement and two previous restatements of its financial
statements and related events and that the previously filed financial statements of Nortel and NNL
and related audit reports should not be relied upon; the negative impact on Nortel and NNL of their
announced restatement and delay in filing their financial statements and related periodic reports
causing them to breach their public debt indentures and obligations under their credit facilities
with the possibility that the holders of their public debt or NNLs lenders would seek to
accelerate the maturity of that debt; and causing a breach of NNLs support facility with EDC with
the possibility that EDC would refuse to issue additional support under the facility, terminate its
commitments under the facility or require NNL to cash collateralize all existing support; legal
judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties
or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S.
and Canada; any significant pending civil litigation actions not encompassed by Nortels proposed
class action settlement; any substantial cash payment and/or significant dilution of Nortels
existing equity positions resulting from the finalization and approval of its proposed class action
settlement, or if such proposed class action settlement is not finalized, any larger settlements or
awards of damages in respect of such class actions; any unsuccessful remediation of Nortels
material weaknesses in internal control over financial reporting resulting in an inability to
report Nortels results of operations and financial condition accurately and in a timely manner;
the time required to implement Nortels remedial measures; Nortels inability to access, in its
current form, its shelf registration filed with the United States Securities and Exchange
Commission (SEC), and Nortels below investment grade credit rating and any further adverse effect
on its credit rating due to Nortels restatement of its financial statements; any adverse affect on
Nortels business and market price of its publicly traded securities arising from continuing
negative publicity related to Nortels restatements; Nortels potential inability to attract or
retain the personnel necessary to achieve its business objectives; any breach by Nortel of the
continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence
suspension or delisting procedures; any default in Nortels filing obligations extending beyond May
9, 2006 for the 2005 Form 10-Ks , and July 15, 2006 for the First Quarter 2006 Form 10-Qs , causing
any Canadian securities regulatory authority to impose an order to cease all trading in Nortels
securities within the applicable jurisdiction or to impose such an order sooner if Nortel fails to
comply with the alternate information guidelines of such regulatory authorities; (ii) risks and
uncertainties relating to Nortels business including: yearly and quarterly fluctuations of
Nortels operating results; reduced demand and pricing pressures for its products due to global
economic conditions, significant competition, competitive pricing practice, cautious capital
spending by customers, increased industry consolidation, rapidly changing technologies, evolving
industry standards, frequent new product introductions and short product life cycles, and other
trends and industry characteristics affecting the telecommunications industry; any material and
adverse affects on Nortels performance if its expectations regarding market demand for particular
products prove to be wrong or because of certain barriers in its efforts to expand internationally;
any reduction in Nortels operating results and any related volatility in its market price of its
publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign
currency exchange rates; any negative developments associated with Nortels supply contract and
contract manufacturing agreements including as a result of using a sole supplier for key optical
networking solutions components, and any defects or errors in Nortels current or planned products;
any negative impact to Nortel of its failure to achieve its business transformation objectives;
restrictions on how Nortel and its president and chief executive officer conduct its business
arising from a settlement with Motorola Inc.; additional valuation allowances for all or a portion
of its deferred tax assets; Nortels failure to protect its intellectual property rights, or any
adverse judgments or settlements arising out of disputes regarding intellectual property; changes
in regulation of the Internet and/or other aspects of the industry; Nortels failure to
successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed
with its strategic alliances; any negative effect of Nortels failure to evolve adequately its
financial and managerial control and reporting systems and processes, manage and grow its business,
or create an effective risk management strategy; and (iii) risks and uncertainties relating to
Nortels liquidity, financing arrangements and capital including: the impact of Nortels recently
announced restatement and two previous restatements of its financial statements; any acceleration
under their public debt indentures and credit facilities, which may result in Nortel and NNL being
unable to meet their respective payment obligations; any inability of Nortel to manage cash flow
fluctuations to fund working capital requirements or achieve its business objectives in a timely
manner or obtain additional sources of funding; high levels of debt, limitations on Nortel
capitalizing on business opportunities because of credit facility covenants, or on obtaining
additional secured debt pursuant to the provisions of indentures governing certain of Nortels
public debt issues and the provisions of its credit facilities; any increase of restricted cash
requirements for Nortel if it is unable to secure alternative support for obligations arising from
certain normal course business activities, or any inability of Nortels subsidiaries to provide it
with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit
plans contributions in the future or exposure to customer credit risks or inability of customers to
fulfill payment obligations under customer financing arrangements; any negative impact on Nortels
ability to make future acquisitions, raise capital, issue debt and retain employees arising from
stock price volatility and further declines in Nortels market price of its publicly traded
securities, or any future share consolidation resulting in a lower total market capitalization or
adverse effect on the liquidity of Nortels common shares. For additional information with respect
to certain of these and other factors, see Nortels securities filings with the SEC, which have not
been updated to reflect each of these risks and uncertainties and which include financial
information that Nortel announced on March 10, 2006 cannot be relied upon. 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.