Nortel Announces Cease Trade Orders Issued by Manitoba Securities Commission

Nortel(i) Networks Corporation (NNC) (OTCBB:NRTLQ) and Nortel Networks Limited
(NNL) announced that they have received notice from the Manitoba Securities
Commission ("MSC") that the MSC has issued cease trade orders ("CTOs"), dated
January 25, 2013, in respect of the securities of NNC and NNL. 


Unlike the CTOs issued in December 2012 by the Ontario Securities Commission and
the Autorite des marches financiers, which orders remain in effect, the CTOs
issued by the MSC do not contain any permitted trading exceptions for tax loss
trades or trades to purchasers who are accredited investors as defined under
applicable Canadian securities laws. Accordingly, all trading in Manitoba in
securities of both NNC and NNL is prohibited with effect as of January 25, 2013.


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www.nortel-canada.com.


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Certain statements in this press release may contain words such as "could",
"expects", "may", "should", "will", "anticipates", "believes", "intends",
"estimates", "targets", "plans", "envisions", "seeks" and other similar language
and are considered forward-looking statements or information under applicable
securities laws. 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 that are difficult to predict, and the
actual outcome may be materially different. Nortel's assumptions, although
considered reasonable by Nortel at the date of this press release, may prove to
be inaccurate and consequently Nortel's actual results could differ materially
from the expectations set out herein.

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: obtain required approvals and
successfully consummate remaining divestitures; successfully conclude ongoing
discussions for the sale of Nortel's remaining assets; 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;
maintain adequate cash on hand in each of its jurisdictions to fund remaining
work within the jurisdiction during the Creditor Protection Proceedings; obtain
any further required approvals from the Canadian Monitor, the U.K.
Administrators, the U.S. Principal Officer, the U.S. Creditors' Committee, or
other third parties; 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; operate
effectively, and in consultation with the Canadian Monitor, the Canadian
creditors' committee, the U.S. Creditors' Committee, the U.S. Principal Officer,
and work effectively with the U.K. Administrators and French Administrator 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; retain and incentivize key employees as may be
needed; retain, or if necessary, 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; and
resolve disputes regarding the allocation of sale proceeds of Nortel's various
business and asset divestitures and other inter-estate matters, including
inter-company claims; 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; the delisting of NNC
common shares and NNL preferred shares from the TSX; the discontinuance of
preparing and filing NNC and NNL's quarterly and annual financial statements and
related filings under Canadian and/or U.S. securities laws; and the cease trade
orders that have been, or may in the future be, issued by the Canadian
Securities Administrators to prohibit trading in securities of NNC and NNL by
reason of NNC and NNL's failure to file their respective financial statements
and related disclosure filings for the third quarter of 2012 or future periods
by the required filing deadlines; and (ii) risks and uncertainties relating to
Nortel's remaining restructuring work including fluctuations in foreign currency
exchange rates; the sufficiency of workforce and cost reduction initiatives; 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; and Nortel's potential inability to maintain an
effective risk management strategy. 


For additional information with respect to certain of these and other factors,
see Nortel's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
other 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. 


(i)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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Nortel
Media Relations
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