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Exhibit 99.1
 News Release
    
    (NORTEL LOGO)
 www.nortel.com
 FOR IMMEDIATE RELEASE
    
    March 23, 2006For more information:Media
    
    InvestorsPatricia Vernon
    
    888-901-7286905-863-1035
    
    905-863-6049patricve@nortel.com
    
    investor@nortel.com
 Nortel Provides Status Update
    About Nortel
 www.nortel.com 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,




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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, 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 affect
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 affect 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 affect 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. 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.