Recent Schedule Amendments for Certain Former Employees’ Pre-Petition Severance Claims

Nortel Networks Inc. and its affiliated U.S. Debtors in chapter 11 proceedings are in the process of amending certain employee claims included on their Schedules E and F, which were previously filed with the Bankruptcy Court. If you received a letter, this means that the debtors have amended the schedules to reflect the amount and priority of your claim for severance under the Nortel Networks Severance Allowance Plan in accordance with their calculations based on their books and records, and applicable law. If you have questions about what you need to do next, please refer to the frequently asked questions.

General Bar Date for Claims

The deadline (general bar date) for filing proofs of claim against Nortel Networks Inc. (NNI) and the other debtors who filed for bankruptcy protection on January 14, 2009 was September 30, 2009.

The deadline (general bar date) for filing proofs of claim against Nortel Networks CALA Inc. was January 25, 2010.

The deadline for filing proofs of claim by intercompany creditors other than the EMEA Claimants, the Canadian Applicants subject to CCAA protection and subsidiaries of the U.S. Debtors against the U.S. Debtors is November 15, 2011.

The deadline for filing proofs of claim by directors and officers who were directors and officers as of August 1, 2009 for indemnification and/or contribution claims against the U.S. Debtors is November 15, 2011.

Nortel Networks Inc. and its affiliated U.S. Debtors in chapter 11 proceedings have retained Epiq Bankruptcy Solutions, LLC as claims agent. Information about NNI’s and its affiliated U.S. Debtors’ claims process can be found at Epiq’s website at chapter11.epiqsystems.com/nortel.

Distributions

Allowed claims will be paid at the end of the bankruptcy process in accordance with a plan of reorganization or liquidation confirmed by the Delaware Bankruptcy Court. We do not have an estimate of when a plan will be confirmed.

The plan will dictate the amounts that will be paid to holders of allowed claims. We cannot give you an estimate of those recovery rates at this time.

The proposed plan of reorganization and disclosure statement with respect to such plan of reorganization currently on file with the Delaware Bankruptcy Court can be found on the Claims Agent’s website at chapter11.epiqsystems.com/NNI/document/Default.aspx?rc=1. The Delaware Bankruptcy Court has not approved the proposed Disclosure Statement, and solicitation with respect to the proposed Plan has not commenced.