##### 



Exhibit 99.1  News Release
    
    (NORTEL NETWORKS LOGO)
 www.nortelnetworks.com  FOR IMMEDIATE RELEASE
    
    October 29, 2004For more information:Media:
Tina Warren
(905) 863-4702
tinawarr@nortelnetworks.com
    
    Investors:
(888) 901-7286
(905) 863-6049
investor@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) 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 Delayed 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 planned restatements and
revisions to the Companys and NNLs prior financial results (the Related
Breaches). The new waiver from EDC will remain in effect until the earlier of certain
events including:  
    
    the date on which the Delayed Reports have been filed with the SEC; or  
    
    November 19, 2004. NNLs prior waiver from EDC, previously announced on September 30, 2004, was
set to expire on October 31, 2004. As previously announced, the Company and NNL expect to file the Delayed Reports
in mid November 2004 and expect to file their third quarter 2004 Quarterly
Reports on Form 10-Q (the Third Quarter Reports) after November 24, 2004. If
the Company and NNL fail to file either the Delayed Reports by November 19,
2004 or the Third Quarter Reports by November 24, 2004, EDC will have the
right, on such dates, unless EDC has granted a further waiver in relation to
the 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. If the Company and NNL fail to file the
Delayed Reports by November 19, 2004, there can be no assurance that NNL would
receive any further waivers or any extensions of the waiver beyond its
scheduled expiry date. While NNL expects to seek a new waiver from EDC in
connection with the delay in filing the Third Quarter Reports past November 24,
2004, 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
Delayed Reports. Accordingly, EDC will have the right (absent a further waiver
of the Related Breaches) beginning on the earlier of the date upon which the
Delayed Reports are filed and November 19, 2004 to terminate or suspend the




---



##### 



EDC Support Facility notwithstanding the filing of the Delayed 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 the Delayed Reports and the Third Quarter Reports are filed with the SEC
and NNL obtains a permanent waiver of the Related Breaches. As of October 28,
2004, there was approximately US$288 million of outstanding support utilized
under the EDC Support Facility, approximately US$204 million of which was
outstanding under the small bond sub-facility. * * * * * * * * * * * * * * * * * As a global innovation leader, Nortel Networks enriches consumer and business
communications worldwide by offering converged multimedia networks that
eliminate the boundaries among voice, data and video. These networks use
innovative packet, wireless, voice and optical technologies and are underpinned
by high standards of security and reliability. For both carriers and
enterprises, these networks help to drive increased profitability and
productivity by reducing costs and enabling new business and consumer services
opportunities. Nortel Networks does business in more than 150 countries. For
more information, visit Nortel Networks 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 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 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 recentForm 10-Q/AandForm 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.