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Nortel Networks

Nortel Appoints New Corporate Operations Leader

Toronto, Canada (ots/PRNewswire)

- Dennis Carey Joins to Accelerate Business Transformation
Nortel(x) (NYSE: NT , TSX: NT) President and Chief Executive
Officer (CEO) Mike Zafirovski today announced the appointment of
Dennis Carey as executive vice president, Corporate Operations.
In this role, Carey will report directly to the President and CEO
and will be responsible for Human Resources, the Business
Transformation Office, Ethics, and Information Services, as well as
the Company's Environment,  Safety and Business Continuity programs,
and Diversity focus.
"With his experience at GE, AT&T, The Home Depot and Motorola,
Dennis brings to Nortel an impeccable business pedigree," Zafirovski
said. "As I continue to strengthen the Company's leadership team,
it's critical that we have individuals with global business
experience working for world-class companies. Dennis will play a key
role in driving the cultural and business transformation at Nortel
that will be essential to the Company's future success."
Building on a 25-year career with GE, Carey brings to Nortel an
extensive background in general management, business development,
corporate operations, strategy, finance, information systems, mergers
and acquisitions, auditing, supply chain management and Six Sigma. He
also has served as vice president and general manager for Corporate
Productivity and M&A for AT&T, and more recently as executive vice
president for Business Development, Strategy and Corporate Operations
for The Home Depot. In his most recent assignment, Carey was
executive vice president, president and CEO, Integrated Electronic
Systems for Motorola.
Carey's appointment is effective January 30, 2006, and he will be
based at the Company's headquarters in Toronto.
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. Serving both  service provider and enterprise customers,
Nortel delivers innovative  technology solutions encompassing
end-to-end broadband, Voice over IP,  multimedia services and
applications, and wireless broadband designed to help  people solve
the world's greatest challenges. 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 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 outcome of regulatory and criminal investigations
and civil litigation actions related to Nortel's restatements and the
impact any resulting legal judgments, settlements, penalties and
expenses could have on Nortel's results of operations,  financial
condition and liquidity, and any related potential dilution of
Nortel's common shares; the findings of Nortel's independent review
and  implementation of recommended remedial measures; the outcome of
the ongoing  independent review with respect to revenues for specific
identified  transactions, which review will have a particular
emphasis on the underlying  conduct that led to the initial
recognition of these revenues; the  restatement or revisions of
Nortel's previously announced or filed financial  results and
resulting negative publicity; the existence of material  weaknesses
in Nortel's internal control over financial reporting and the
conclusion of Nortel's management and independent auditor that
Nortel's  internal control over financial reporting is ineffective,
which could  continue to impact Nortel's ability to report its
results of operations and  financial condition accurately and in a
timely manner; the impact of Nortel's  and NNL's failure to timely
file their financial statements and related  periodic reports,
including Nortel's inability to access its shelf  registration
statement filed with the United States Securities and Exchange
Commission (SEC); the impact of management changes, including the
termination  for cause of Nortel's former CEO, CFO and Controller in
April 2004; the  sufficiency of Nortel's restructuring activities,
including the work plan  announced on August 19, 2004 as updated on
September 30, 2004 and  December 14, 2004, including the potential
for higher actual costs to be  incurred in connection with
restructuring actions compared to the estimated costs of such
actions; cautious or reduced spending by Nortel's customers;
increased consolidation among Nortel's customers and the loss of
customers in certain markets; fluctuations in Nortel's operating
results and general industry, economic and market conditions and
growth  rates; fluctuations in Nortel's cash flow, level of
outstanding debt and  current debt ratings; Nortel's monitoring of
the capital markets for  opportunities to improve its capital
structure and financial flexibility;  Nortel's ability to recruit and
retain qualified employees; the use of cash  collateral to support
Nortel's normal course business activities; the  dependence on
Nortel's subsidiaries for funding; the impact of Nortel's  defined
benefit plans and deferred tax assets on results of operations and
Nortel's cash flow; the adverse resolution of class actions,
litigation in  the ordinary course of business, intellectual property
disputes and similar  matters; Nortel's dependence on new product
development and its ability to  predict market demand for particular
products; Nortel's ability to integrate  the operations and
technologies of acquired businesses in an effective  manner; the
impact of rapid technological and market change; the impact of  price
and product competition; barriers to international growth and global
economic conditions, particularly in emerging markets and including
interest  rate and currency exchange rate fluctuations; the impact of
rationalization  and consolidation in the telecommunications
industry; changes in regulation  of the Internet; the impact of the
credit risks of Nortel's customers and the  impact of customer
financing and commitments; general stock market  volatility; negative
developments associated with Nortel's supply contracts  and contract
manufacturing agreements, including as a result of using a sole
supplier for a key component of certain optical networks solutions;
the  impact of Nortel's supply and outsourcing contracts that contain
delivery and  installation provisions, which, if not met, could
result in the payment of  substantial penalties or liquidated
damages; any undetected product defects,  errors or failures; the
future success of Nortel's strategic alliances; and  certain
restrictions on how Nortel and its president and chief executive
officer conduct business. For additional information with respect to
certain  of these and other factors, see the most recent Annual
Report on Form 10-K  and Quarterly Report on Form 10-Q filed by
Nortel 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.
(x)Nortel, the Nortel logo and the Globemark are trademarks of
Nortel
Networks.

Contact:

For further information: Patricia Vernon, +1-(905)-863-1035,
patricve@nortel.com; Jay Barta, +1-(972)-685-2381, jbarta@nortel.com;
www.nortel.com