Nortel Networks Inc., my company, just today fired with cause its CEO, along with the CFO and Comptroller who were put on leave a month ago. Apparently 2001 and 2002 losses were overprovisioned but 2003 profit was exaggerated to make the turn around looked better than it should have been.

William Owens has been appointed president and chief executive officer of the Company and NNL. Owens replaces Frank Dunn who has been terminated for cause. Owens has been a director of the Company and NNL since February 2002. Until this appointment, he was the chairman and chief executive officer of Teledesic LLC, a satellite communications company, since June 2003 and was vice chairman and co-chief executive officer from August 1999 to June 2003. Previously, he was president, chief operating officer and vice chairman of Science Applications International Corporation ("SAIC"), one of the largest employee-owned high-technology companies in the United States. Prior to joining SAIC, Owens was vice chairman of the United States Joint Chiefs of Staff, and the second-ranking military officer in the United States. Owens served as Commander of the U.S. Sixth Fleet during Operation Desert Storm.

The appointments of William Kerr as chief financial officer and MaryAnne Pahapill as controller have been made permanent. These appointments had been made on an interim basis on March 15, 2004. Kerr, a chartered accountant, originally joined Nortel Networks in 1994 as controller. Before leaving Nortel Networks in 2001, he held a number of senior positions in the Company's Finance organization including senior vice-president, finance and treasurer and senior vice-president, corporate business development. Since joining Nortel Networks in 1999, Pahapill, a chartered accountant, has held a number of positions in the Company's Finance organization including assistant controller and, most recently, assistant treasurer. Former chief financial officer, Douglas Beatty, and former controller, Michael Gollogly, both of whom had been placed on paid leave of absence by Nortel Networks on March 15, 2004, have been terminated for cause.