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May 11, 2001
Nortel Networks Announces Chandran to Leave Company
Moves Forward With Succession Process -- Roth to Retire, April 2002
TORONTO – John Roth, president and chief executive officer of Nortel Networks* [NYSE/TSE: NT], announced that Clarence J. Chandran, chief operating officer, has resigned effective immediately in order to take additional time for the successful completion of his medical leave announced March 13, 2001. Roth said that Chandran has resigned as chief operating officer and as a director of the corporation.
The company announced on March 13 that, on the advice of his doctors, Chandran was taking a medical leave of absence for a six to 12-month period to recuperate fully from recent surgeries to address complications arising from an incident in June 1997 in which he was seriously injured in a stabbing attack in Singapore. Roth said: “We regret that Clarence is resigning from the company but fully understand and support his decision. We wish him a speedy recovery and success in his future endeavors. On behalf of the board of directors and executive team, I want to thank Clarence for his dedication and contributions to Nortel Networks growth and development which helped make the company the world’s leading communications and Internet solutions supplier.” Chandran commented: “I am advised by my doctors that my medical leave of absence, while progressing well, will require more time for me to fully recover, at which time I will resume an active schedule. I have concluded that it is simply unfair to the company to extend my absence on these grounds and the responsible course is to step aside.” “I want to thank the board of directors, employees, customers and suppliers of Nortel Networks for their support and consideration throughout my recovery period and during my 15 years with the company. I am extremely proud of our shared accomplishments in developing leading edge businesses, in building a truly international organization, and in establishing Nortel Networks as a genuine leader well positioned for future success. I look forward to whatever opportunities lie ahead while wishing Nortel Networks and my colleagues every success going forward.” Following the announcement of the Chandran resignation, Roth said that, in view of his own plans to retire in April 2002, the company will immediately launch a search for his successor as CEO. Roth said: “Since Clarence is no longer available in our succession planning, I’ll be working with our board of directors to undertake a search for my successor. Our priority is to have my successor in place well before I retire to ensure a smooth and orderly transition. I will not be leaving until our annual meeting next year. This gives us plenty of time to recruit a successor and ensure a smooth transition.” Since Chandran’s medical leave in March, Roth has assumed his responsibilities of day-to-day operations, as well as being president and CEO. He will continue this role until his successor is in place. Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com. Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the impact of the credit risks of our customers; the entrance by Nortel Networks into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in Nortel Networks having to pay substantial penalties or liquidated damages; and the impact of increased provision of customer financing and commitments by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks 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 Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks.Contact for Press and Analysts:
Business Media:
Tina Warren
Nortel Networks
905-863-4702
tinawarr@nortel.com
David Chamberlin
Nortel Networks
972-685-4648
ddchamb@nortel.com
Investor Relations:
Nortel Networks
888-901-7286
905-863-6049
investor@nortel.com
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