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Exhibit 99.1 News Release
    
    (NORTEL LOGO)
 www.nortel.comFOR IMMEDIATE RELEASE
    
    March 17, 2005For more information:Media
    
    InvestorsMarion MacKenzie
    
    (888) 901-7286(905) 863-1035
    
    (905) 863-6049mackenm@nortel.com
    
    investor@nortel.com
  Nortel Networks Corporation Shareholder Proposals TORONTO  Nortel Networks* Corporation [NYSE/TSX: NT] announced today that in connection with
its planned combined 2004/2005 annual meeting of shareholders to be held this year following the
filing of the Companys 2004 audited financial statements (the Meeting), eligible shareholders of
the Company may propose matters for a vote by the Companys shareholders at the Meeting. The
Company is publishing today certain eligibility and procedural requirements in order to assist
shareholders in understanding the requirements of applicable law and expedite the timely submission
and processing of shareholder proposals. The Company will consider a shareholders proposal for inclusion in its proxy materials for the
Meeting if the Company receives the proposal in writing, no later than 5:00 p.m. (Eastern Standard
Time) on March 31, 2005, provided that the following procedural and eligibility requirements are
satisfied. Eligibility and Procedural Requirements for Shareholder Proposals  
    The proposal must be addressed to the Corporate Secretary, Nortel Networks Corporation,
8200 Dixie Road, Suite 100, Brampton, Ontario, Canada L6T 5P6.
    The proposal must be accompanied by (i) the name and address of the proposer and, if
applicable, the name and address of each other shareholder who is to be included as a
supporter of the proposal, (ii) the number of common shares of the Company owned by the
proposer and, if applicable, by the supporting shareholders and (iii) the date the shares
were acquired by the proposer and, if applicable, the supporting shareholders.
    The proposal, including any supporting statement, must not exceed 500 words.
    The shareholder submitting the proposal, either alone or together with any supporting
shareholders, or the supporting shareholders together without the proposer, must be the
beneficial or registered holder of common shares of the Company having an aggregate market
value of at least Cdn. $2,000, or the United States dollar equivalent, and must have
continuously held such shares for at least six months prior to the date of submission of
the proposal.
    Proposers and, if applicable, supporting shareholders, whose common shares of the
Company are beneficially held indirectly through another person or entity (e.g., a broker
or a bank in whose name such shares are registered) must provide to the Company proof of
beneficial ownership of the shares. For this purpose, the Company will accept a written
statement from the registered holder of the shares verifying the number of shares the
proposer and each of the supporting shareholders, if applicable, beneficially owns and the
date such shares were acquired. Alternatively, a proposer (and/or any supporting
shareholder) who has filed a Schedule 13D, Schedule 13G, Form 3, Form 4 and/or Form 5 with
the United States Securities and Exchange Commission reflecting ownership of such shares as
of or before the date on which the six-month eligibility period begins, may submit copies
of such forms and any subsequent amendments reporting a change in ownership level, together
with a written statement that the proposer (or, if applicable, supporting shareholder) has
held the required number of shares continuously for six months as of the date the proposal
is submitted to the Company.
    If the Company believes that a proposer has not satisfied any of these eligibility or
procedural requirements in accordance with applicable law, the Company will notify the
proposer within 14 days of receiving the proposal. The proposer will then have 21 days from
the date of receipt of the Companys notification to prove eligibility or remedy any
procedural defects. Failure to do so may result in the exclusion of the proposal from the
Companys proxy materials.




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Page 2 The Company will review all proposals made by eligible shareholders to determine whether they will
be included in the Companys proxy materials for the Meeting. If the Company intends to omit a
proposal, which it may do in certain circumstances prescribed under applicable law, it will notify
the proposer of such intention and the reasons for doing so. Shareholder proposals that are accepted must be presented by the proposer or a representative of
the proposer at the Meeting. If the Company chooses to do so, it may include a statement supporting
or opposing the proposal and the reasons why the Company recommends voting for or against the
proposal in its proxy materials for the Meeting. The Company received an order from the Ontario Superior Court of Justice extending the time for
calling the Companys 2004 annual meeting of shareholders to a date no later than June 30, 2005.
The Company plans to hold the combined 2004/2005 annual meeting of shareholders as soon as
reasonably possible within the extended time period granted by the Court. ************************ 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 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; the findings of Nortels independent review and
implementation of recommended remedial measures; the outcome of the 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 controls over financial
reporting; the impact of Nortels and NNLs failure to timely file their financial statements and
related periodic reports, including breach of its support facility and public debt obligations and
Nortels inability to access its shelf registration statement filed with the United States
Securities and Exchange Commission (SEC); ongoing SEC reviews, which may result in changes to our
public filings; the potential delisting or suspension of Nortels and NNLs publicly traded
securities; 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, 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; fluctuations in Nortels cash flow, level of outstanding debt and
current debt ratings; 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 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, which is currently not available, of Nortels forward 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 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. -end- *Nortel, the Nortel logo and the Globemark are trademarks of Nortel.