Monday, 26 February 2007

Nortel Declares Preferred Share Dividends

The board of directors of Nortel has declared a dividend in respect of each of the months of January and February 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 company said.

The dividend amount for each series is calculated in accordance with the terms and conditions applicable to each respective series, as set out in the Company's articles. The annual dividend rate for each series floats in relation to changes in the average of the prime rate of Royal Bank of Canada and The Toronto-Dominion Bank during the preceding month (Prime) and is adjusted upwards or downwards on a monthly basis by an adjustment factor which is based on the weighted average daily trading price of each of the series for the preceding month, respectively, the company added.

The maximum monthly adjustment for changes in the weighted average daily trading price of each of the series will be plus or minus 4.0 per cent of Prime. The annual floating dividend rate applicable for a month will in no event be less than 50 per cent of Prime or greater than Prime. The dividend on each series in respect of the month of March is payable on April 12, 2007 to shareholders of record of such series at the close of business on March 30, 2007. The dividend on each series in respect of the month of April is payable on May 14, 2007 to shareholders of record of such series at the close of business on April 30, 2007, the company continued.