Nortel Securities Legislation

A Settlement in the amount of $438,667,428 in cash, and 314,333,875 shares of Nortel common stock was reached on behalf of investors who purchased Nortel common stock or call options on Nortel common stock, or wrote (sold) put options on Nortel common stock, during the period October 24, 2000 through February 15, 2001, inclusive. This Settlement is referred to as the Nortel I Settlement.

A Settlement in the amount of $370,157,418 in cash, and 314,333,875 shares of Nortel common stock was reached on behalf of investors who purchased Nortel common stock or call options on Nortel common stock, or wrote (sold) put options on Nortel common stock, during the period April 24, 2003 through April 27, 2004, inclusive. This Settlement is referred to as the Nortel II Settlement.

Investors only qualify if the transactions took place during the Nortel I and the Nortel II periods. Otherwise, investors do not qualify.

A claim must be made in order to participate in the settlement – inclusion is NOT automatic. Claim forms and details of the class action settlement are now available from the following web site; we have also enclosed the claim forms.

http://www.nortelsecuritieslitigation.com

Investors are required to enclose photocopies of confirmation slips, stockbroker’s statements, or other documents evidencing each purchase, sale or retention of Nortel common stock or Nortel common stock options listed below in support of their claim.

The Claims Administrator has noted that it will take a significant amount of time to process fully all of the Proofs of Claim and to administer the Settlement. This work will be completed as promptly as time permits, given the need to investigate and tabulate each Proof of Claim. Further, according to the Nortel Securities Legislation website,

“Benefits will be calculated according to the Plan of Allocation summarized in the Notice. It will not be possible to estimate individual benefit amounts until all claim forms have been received and authorized by the Courts.”