Nortel Networks Declares Preferred Share Dividends

The board of directors of Nortel Networks Limited declared a dividend on each of the outstanding Cumulative Redeemable Class A Preferred Shares Series 5 and the outstanding Non-cumulative Redeemable Class A Preferred Shares Series 7. The dividend on each series is payable on September 13, 2004 to shareholders of record of such series at the close of business on August 31, 2004. http://www.nortelnetworks.com