Nortel shelves MEN sale

The previously announced potential MEN divestiture has been put on hold. These plans have been put on hold while the overall business plan is being developed to emerge from this process a more competitive and focused company, which will be subject to the approval of creditors and the courts. Through the restructuring process, our goal is to proactively address the Company’s current challenges and ultimately strengthen the business to ensure its long-term viability.

The MEN business is among the strongest in the industry with an installed base of over 410,000 network elements, and with ground-breaking technology and opportunities moving forward like 40G/100G.

# We have a total of 42 wins and have received over 55 orders to date
# Since the September announcement of the intention to explore the divestiture of M.E.N., we have closed over 20 new 40G deals
# We are targeting the delivery of our 100G solution by the end of 2009

This point came up in a couple of discussions this week and I wanted to get you firm response as soon as I could. I won’t be able to provide much more by way of clarification, but feel free to let me know if you have any other questions.