Nortel Provides Further Update on Allocation Protocol Motion

Nortel Networks Corporation NRTLQ announced today that the Ontario Superior Court of Justice and the U.S. Bankruptcy Court for the District of Delaware have appointed The Honourable Warren K. Winkler, Chief Justice of Ontario, as the sole mediator for the mediation that the two courts directed to be held pending the release of their decisions on the motions heard by such courts on June 7, 2011 for approval of a proposed allocation protocol. The mediation was ordered because of both courts' concern that the time required to prepare their decisions would also delay allocation proceedings and, therefore, distributions to creditors of the various Nortel estates. The Mediator will have authority, in consultation with the parties to the mediation, to determine the scope of the mediation, as he deems appropriate, including the issue of allocation of the sale proceeds of Nortel's various businesses and patent portfolio, and global issues relating to allocation and claims. Participation in this mediation is mandatory.