Nortel Networks - Dividend Declaration

RNS No 8203v
NORTEL NETWORKS CORPORATION
28 October 1999

For more information:

Media Relations:                      Investor Relations:
Jeff Ferry                            Angela McMonagle
Nortel Networks                       Nortel Networks
703-712-8339                          905-863-6044
[e-mail]             [e-mail]

Nortel Networks Declares Common and Preferred Share Dividends

BRAMPTON, Ontario -- The board of directors of Nortel Networks Corporation
(NYSE/TSE: NT) today declared Nortel Networks* regular quarterly dividend of
US$0.0375 per common share, payable on December 31, 1999 to shareholders of
record at the close of business on December 3, 1999.

W1th respect to Nortel Networks' Cumulative Redeemable Class A Preferred Shares
Series 4, the board of directors declared a dividend in the amount of Cdn.
$1,495.89 per share. The dividend is payable on November 10, 1999 to
shareholders of record at the close of business on November 9, 1999.

The hoard of directors also declared a second dividend on Nortel Networks'
Cumulative Redeemable Class A Preferred Shares Series 4, the amount of which
will be determined in accordance with the terms and conditions attaching to such
shares, payable on December 15, 1999 to shareholders of record at the dose of
business on December 14, 1999.

With respect to Nortel Networks' Cumulative Redeemable Clam A Preferred Shares
Series 5, the board of directors declared a dividend in the amount of Cdn.
$0.31875 per share. The dividend is payable on December 1, 1999 to shareholders
of record at the close of business on November 15, 1999.

The board of directors also declared a dividend on Nortel Networks
Non-cumulative Redeemable Class A Preferred Shares Series 7 in the amount of
Cdn. $0.30625 per share. The dividend is payable on December 1, 1999 to
shareholders of record at the close of business on November 15, 1999.

Nortel Networks is a global leader in telephony, data, wireless and wireline
solutions for the Internet. The Company had 1998 revenues of US$ 17.6 billion
and serves carrier, service provider and enterprise customers globally. Today,
Nortel Networks is creating a high performance Internet that is more reliable
and faster than ever before. It is redefining the economies and quality of
networking and the Internet through Unified Networks* that promise a new era of
collaboration, communications and commerce. Visit us at www.nortelnetworks.com
                            
*Nortel Networks , the Nortel Networks Globalmark, Unified Networks and How the
world shares ideas are trademarks of Nortel Networks.

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