(Source: MARKETWIRE)Nortel(i) Networks Corporation (OTCBB: NRTLQ) announced today that in light of the current status of the Company's various divestiture activities and asset sales, it has determined, after discussions with interested parties, that it is preferable to schedule the auction in relation to the sale of its GSM/GSM-R business at a later date than initially planned. The anticipated auction date will be postponed from November 9, 2009 to November 20, 2009. Qualified bidders will be required to submit offers by November 16, 2009.

As previously announced, Nortel plans to sell substantially all of its global GSM/GSM-R business by "open auction", including the transfer of specified patents predominantly used in the GSM business and granting of non-exclusive licenses of other relevant patents.

Nortel also announced that it, its principal operating subsidiary Nortel Networks Limited ("NNL") and its other Canadian subsidiaries that filed for creditor protection under the Companies' Creditors Arrangement Act have obtained an order from the Ontario Superior Court of Justice ("Canadian Court") further extending, to December 18, 2009, the stay of proceedings that was previously granted by the Canadian Court. The purpose of the stay of proceedings is to allow the Nortel companies to consummate planned sales, continue to advance in discussions with interested parties for the sale of its other businesses, continue to assess other restructuring alternatives if it is unable to maximize value through sales and file a plan of arrangement.

In addition, Nortel announced that it, NNL and Nortel Networks Inc., obtained orders from the United States Bankruptcy Court for the District of Delaware and the Canadian Court approving the agreement with Hitachi, Ltd. for the sale of certain assets associated with the development of next generation packet core network components (excluding legacy packet core components for Nortel's GSM and UMTS businesses) for a purchase price of US$10 million. Under the agreement, the assets include software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, including relevant non-patent intellectual property, equipment and other related tangible assets, as well as a non-exclusive license of certain relevant patents and other intellectual property. Consummation of the transaction is subject to the satisfaction of regulatory and other customary conditions. The sale is expected to close in 2009.

As previously announced, Nortel does not expect that the Company's common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

About Nortel

Nortel delivers communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. For more information, visit Nortel on the Web at www.nortel.com.