Nortel Auction Date for the Sale of its GSM/GSM-R Business

Nortel* Networks Corporation announced that, as an
update to its previous announcement regarding the timing of the auction
date for the sale of its GSM/GSM-R business, the auction will be held
on Tuesday, November 24, 2009.

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 the Creditor
Protection Proceedings including: (a) risks associated with Nortel’s
ability to: stabilize the business and maximize the value of Nortel’s
businesses; obtain required approvals and successfully consummate
pending and future divestitures; ability to satisfy transition services
agreement obligations in connection with divestiture of operations;
successfully conclude ongoing discussions for the sale of Nortel’s
other assets or businesses; develop, obtain required approvals for, and
implement a court approved plan; resolve ongoing issues with creditors
and other third parties whose interests may differ from Nortel’s;
generate cash from operations and maintain adequate cash on hand in
each of its jurisdictions to fund operations within the jurisdiction
during the Creditor Protection Proceedings; access the EDC Facility
given the current discretionary nature of the facility, or arrange for
alternative funding; if necessary, arrange for sufficient
debtor-in-possession or other financing; continue to have cash
management arrangements and obtain any further required approvals from
the Canadian Monitor, the U.K. Administrators, the French
Administrator, the Israeli Administrators, the U.S. Creditors’
Committee, or other third parties; raise capital to satisfy claims,
including Nortel’s ability to sell assets to satisfy claims against
Nortel; maintain R&D investments; realize full or fair value for
any assets or business that are divested; utilize net operating loss
carryforwards and certain other tax attributes in the future; avoid the
substantive consolidation of NNI’s assets and liabilities with those of
one or more other U.S. Debtors; attract and retain customers or avoid
reduction in, or delay or suspension of, customer orders as a result of
the uncertainty caused by the Creditor Protection Proceedings; maintain
market share, as competitors move to capitalize on customer concerns;
operate Nortel’s business effectively in consultation with the Canadian
Monitor, and the U.S. Creditors’ Committee and work effectively with
the U.K. Administrators, French Administrator and Israeli
Administrators in their respective administration of the EMEA
businesses subject to the Creditor Protection Proceedings; continue as
a going concern; actively and adequately communicate on and respond to
events, media and rumors associated with the Creditor Protection
Proceedings that could adversely affect Nortel’s relationships with
customers, suppliers, partners and employees; retain and incentivize
key employees and attract new employees as may be needed; retain, or if
necessary, replace major suppliers on acceptable terms and avoid
disruptions in Nortel’s supply chain; maintain current relationships
with reseller partners, joint venture partners and strategic alliance
partners; obtain court orders or approvals with respect to motions
filed from time to time; resolve claims made against Nortel in
connection with the Creditor Protection Proceedings for amounts not
exceeding Nortel’s recorded liabilities subject to compromise; prevent
third parties from obtaining court orders or approvals that are
contrary to Nortel’s interests; reject, repudiate or terminate
contracts; and (b) risks and uncertainties associated with: limitations
on actions against any Debtor during the Creditor Protection
Proceedings; the values, if any, that will be prescribed pursuant to
any court approved plan to outstanding Nortel securities  and, in
particular, that Nortel does not expect that any value will be
prescribed to the NNC common shares or the NNL preferred shares in any
such plan; the delisting of NNC common shares from the NYSE; and the
delisting of NNC common shares and NNL preferred shares from the TSX;
and (ii) risks and uncertainties relating to Nortel’s business
including: the sustained economic downturn and volatile market
conditions and resulting negative impact on Nortel’s business, results
of operations and financial position and its ability to accurately
forecast its results and cash position; cautious capital spending by
customers as a result of factors including current economic
uncertainties; fluctuations in foreign currency exchange rates; any
requirement to make larger contributions to defined benefit plans in
the future; a high level of debt, arduous or restrictive terms and
conditions related to accessing certain sources of funding; the
sufficiency of workforce and cost reduction initiatives; any negative
developments associated with Nortel’s suppliers and contract
manufacturers including Nortel’s reliance on certain suppliers for key
optical networking solutions components and on one supplier for most of
its manufacturing and design functions; potential penalties, damages or
cancelled customer contracts from failure to meet contractual
obligations including delivery and installation deadlines and any
defects or errors in Nortel’s current or planned products; significant
competition, competitive pricing practices, 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, adverse affects on Nortel’s performance if its
expectations regarding market demand for particular products prove to
be wrong; potential higher operational and financial risks associated
with Nortel’s international operations; a failure to protect Nortel’s
intellectual property rights; any adverse legal judgments, fines,
penalties or settlements related to any significant pending or future
litigation actions; failure to maintain integrity of Nortel’s
information systems; changes in regulation of the Internet or other
regulatory changes; and Nortel’s potential inability to maintain an
effective risk management strategy. 


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