Nortel Discloses Additional Subpoena For Accounting Records

WASHINGTON -(Dow Jones)- Nortel Networks Inc. on Thursday disclosed that it received an additional federal subpoena in connection with an ongoing criminal investigation by the U.S. Attorney's Office for the Northern District of Texas.

According to the company's quarterly report filed with the Securities and Exchange Commission, the federal grand jury subpoena was received Aug. 23 and seeks production of additional documents, including documents relating to the Nortel Retirement Income Plan and the Nortel Long Term Incentive Plan.

In May 2004, Nortel announced receipt of an initial grand jury subpoena for production of documents, including financial statements and corporate, personnel and accounting records, in connection with the investigation.

Nortel continues to examine the causes of an accounting scandal that forced the company to restate previous financial results and led to the termination of several senior executives last year.

In a press release Wednesday, the company said its audit committee expects to complete its accounting review prior to filing its 2005 annual report on Form 10-K.

The company said it's committed to fully cooperating with ongoing investigations into its accounting practices by the regulatory and law enforcement authorities in Canada and the U.S.

Brampton, Ontario-based Nortel is a communications networking company.

-By Dan Lowrey, Dow Jones Newswires; 202-862-1345; dan.lowrey@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 3rd November 2005