Nortel Networks - Re Stock Split

RNS Number:4234E
Nortel Networks Corp
25 January 2000


For more information:

Investor Relations:                     Business Media:
Angela McMonagle                        Jeff Ferry
Nortel Networks                         Nortel Networks
[phone]                          [phone]
[e-mail]               [e-mail]


Nortel Networks Announces Proposed Two-for-One Stock Split

BRAMPTON, ONTARIO -The board of directors of Nortel Networks Corporation
(NYSE/TSE: NT) today approved, subject to common shareholder and
regulatory approval, a division of the common shares of Nortel Networks*
on a two-for-one basis. Common shareholders of Nortel Networks will be
asked to approve the two-for-one stock split at the Corporation's next
scheduled meeting of common shareholders.

"Since July 29, 1999, the day we announced the one-for-one stock
dividend, we have continued to experience strong business momentum and
there has been an approximate 125% increase in our share price" said John
Roth, president and chief executive officer. Nortel Networks. "We expect
that this two-for-one stock split will make our common shares more
accessible to a broader base of investors".

If effected, the stock split would increase the number of outstanding
Nortel Networks' common shares from approximately 1.38 billion to
approximately 2.76 billion.

Nortel Networks is a global leader in telephony, data, wireless and
wireline solutions for the Internet. The Company had 1999 revenues of
US$22.2 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 economics 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

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 impact of price and product competition;  the
dependence on new product development, the impact of rapid technological and
market change;  the ability of Nortel Networks to integrate the operations and
technologies of acquired businesses in an effective manner, general industry and
market conditions and growth rates;  international growth and global economic
conditions, particularly in emerging markets and including interest rate and
currency exchange rate fluctuations; unanticipated impact of Year 2000 issues; 
and the impact of consolidations in the telecommunications industry.  For
additional information with respect to certain of these and other factors, see
the reports filed by Nortel Networks with the United States Securities and
Exchange Commission.  Nortel Networks disclaims any intention or obligation to
update or revise any forward-looking statements.

*Nortel  Networks, the Nortel Networks logo, the Globemark, Unified Networks,
and How the world shares ideas are trademarks of  Nortel Networks.

END
MSCEAFFSASFEEAE