SUBJECT: PROCESSING ADJUSTMENTS FOR SETTLEMENT MAY 4, 1999 REGARDING NAME CHANGE FROM NORTHERN TELECOM TO NORTEL NETWORKS

Due to a processing problem, the name change from Northern Telecom (Cusip#665815106) into Nortel Networks Corp (Cusip# 656569100) did not occur simultaneously in NSCC’s CNS system and at Depository Trust Company. CNS swung open obligations from the old to the new Cusip number effective with settlement date May 4, 1999.

To fulfill open CNS obligations in the new shares, arrangements have been made for participants to deliver old shares in Cusip# 665815106 to Account #0887 utilizing the DO function on DTC’s Participant Terminal System. Deliveries to the #0887 Account should be made "FREE" no later than 2:30P.M. today, May 4, 1999. NSCC will redeliver available shares from the #0887 Account, "FREE" to participants with a long position via DTC’s DO function until the completion of DTC’s DO cycle.

NSCC will process adjusting share entries in the new Cusip # 656569100 to CNS accounts reflecting transactions that have been completed in the old Cusip# 665815106. These adjustments will be processed on May 4, 1999 and appear on the CNS Miscellaneous Activity statement as code 71 (Trade adjustment) for settlement of May 5, 1999.

NSCC will make money adjustments to participants settlement accounts reflecting transactions that have been completed in the old Cusip #. These adjustments will appear on your NSCC settlement statement as a code 82.

Questions regarding the aforementioned should be directed to your Account representative at (212) 412-8432, or the undersigned at (212) 412-8658.

Gerhard Krobisch
Vice President, Operations