Nortel Networks Corporation – 116

April 9, 2010

Following the March 31, 2010 court approval of the Settlement Agreement, which provides for the continuation of LTD income, medical, dental and life insurance benefits through 2010, Nortel employees in receipt of long-term disability benefits received a letter from Nortel.

Please note the letter does not discuss other sources of recovery for you from Nortel. Although your LTD income benefits and your medical, dental and life insurance benefits will end on December 31, 2010, which is the date your employment with Nortel will be terminated, you have other sources of recovery. The first distribution you will receive, which is targeted to be effected before the end of 2010, is from Nortel’s Health and Welfare Trust. You will also receive a distribution from Nortel’s estate. We are not yet certain when this distribution will be made. Your court-appointed Representative, Representative Counsel and their advisors are looking into options for some form of ongoing medical benefits post-December 31, 2010. We will advise of developments.

If there are any questions or concerns, please do not hesitate to contact Representative Counsel at 1.866.777.6344.

Please also do not hesitate to contact the Monitor at 1.866.942.7177 or 1.416.943.4439.

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