New Headquarters for The New York Times Company to Stay Connected With Nortel

Communications to Help Reflect Quality of Foremost American Daily Newspaper

OCTOBER 30, 2006 - NEW YORK - When The New York Times Company opens its new headquarters in the spring of 2007, state-of-the-art technology from Nortel* [NYSE/TSX: NT] will give its employees a range of options for staying connected to breaking news stories, readers, advertisers and business affiliates.

The Times Company has selected Nortel’s integrated communications solution for its new headquarters now under construction in Times Square. This will include Nortel IP phones, VoIP, unified messaging, contact center, data and security solutions to be provided through a Nortel channel partner.

The Times Company has also signed a professional services agreement with Nortel under which it is expected to purchase installation and maintenance services from the Nortel Global Services portfolio.

“Our new headquarters will reflect a corporate vision of openness to our readers and our community, as well as our commitment to quality and integrity,” said David Thurm, vice president and chief information officer, The New York Times Company. “Because we expect real business benefits from this new building, we’ve taken an aggressive role in every step of its design and construction, including selection of the technology that will help keep us open and connected to the global community we serve.”

“We chose Nortel’s solution after a rigorous selection process that included extensive ’proof of concept’ testing of the industry’s top IP vendor offerings,” Thurm said. “The strong working relationship we have forged with Nortel will be integral to our efforts to enhance society by creating, collecting and distributing high-quality news, information and entertainment.”

Times reporters and editors will be able to collaborate on stories in real-time with colleagues and editors via their PCs or through instant ’meet me’ audio conferencing. They will be free to work from anywhere with the ability to make any phone and desk their own ’virtual office’ and secure remote access for filing stories ’on the go’.

Nortel’s Contact Center solution will give Times customer care agents the flexibility and agility to handle requests from the main contact center, from a branch office, or from home. Customer requests will be expedited seamlessly across telephone, e-mail and Web applications.

“The New York Times Company is a leading global content provider with high purpose and high goals,” said Mike Zafirovski, president and chief executive officer, Nortel. “To help serve that purpose, The Times Company requires a communications solution up to the task of seamlessly and transparently connecting what will be one of the most advanced corporate headquarters in the world to its two greatest assets - its readers and its employees.”

“More than that, The Times Company wants this solution to be efficient, effective, and a catalyst for new opportunities to serve its readers and society,” Zafirovski said. “Nortel offers that solution. And not just the equipment, but also the applications, the services, and the relationship best suited to helping achieve The Times Company’s business objectives.”

The Nortel solution for The Times Company will include Nortel CallPilot* Unified Messaging, Nortel Contact Center, Nortel Communication Server 1000, Nortel IP phones, Nortel Ethernet Routing Switch 8600, and Nortel Power over Ethernet Switch 5520.

Nortel’s Global Services include a full range of integrated services for design, deployment, management and maintenance of end-to-end multi-vendor network solutions, including seamless migration to next generation technologies.

About The New York Times Company

The New York Times Company [NYSE: NYT], a leading media company with 2005 revenues of US$3.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, nine network-affiliated television stations, two New York City radio stations and 35 Web sites, including NYTimes.com, Boston.com and About.com. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s restatements and related matters including: Nortel’s most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel’s proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel’s existing equity positions resulting from the finalization and approval of its proposed class action settlement, or if such class action settlement is not finalized, any larger settlements or awards of damages in respect of such class actions; any unsuccessful remediation of Nortel’s material weaknesses in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel’s remedial measures; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel’s below investment grade credit rating and any further adverse effect on its credit rating due to Nortel’s restatements of its financial statements; any adverse affect on Nortel’s business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel’s restatements; Nortel’s potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; (ii) risks and uncertainties relating to Nortel’s business including: yearly and quarterly fluctuations of Nortel’s operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel’s unfunded pension liability deficit; any material and adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel’s operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel’s supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel’s current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives, including completion of the sale of its UMTS access business to Alcatel; additional valuation allowances for all or a portion of its deferred tax assets; Nortel’s failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel’s failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel’s failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: the impact of Nortel’s most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of credit facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel’s public debt issues and the provisions of its credit facilities; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel’s publicly traded securities, or any future share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel’s common shares. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K/A, Quarterly Report on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

*Nortel, the Nortel logo, the Globemark and CallPilot are trademarks of Nortel Networks.

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Nortel Networks

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