Nortel Inversora S.A. Announces Consolidated Annual Results for the Fiscal Year Ending December 31, 2011

(i)

to approve the Company's Annual Reports and Financial Statements as of December 31, 2010;

(ii)

to appoint Price Waterhouse & Co. S.R.L. as external auditors of the Company;

(iii)

to approve and ratify the payment of the provisional dividend declared by the Board on October 5,  2010 for a total amount of AR$ 356 million;

(iv)

to approve the redemption of 242,454 "Class A" Preferred Shares for a total amount of AR$ 196 million (pursuant to the applicable calculations and adjustments subsequently made by the Board on April 18, 2011), and the reduction of capital stock corresponding to such redemption;

(v)

to approve the payment of the preferred basic dividend accumulated by the "Class A" Preferred Shares subject to the redemption referred to in paragraph (iv) above, for a total amount of AR$ 32 million (pursuant to the applicable calculations and adjustments subsequently made by the Board on April 18,  2011); and

(vi)

to carry forward the balance of non-appropriated profit amounts as of December 31, 2010.

(i)

to approve the redemption of 418,202 "Class A" Preferred Shares for a total amount of AR$ 349 million, and the reduction of capital stock corresponding to such redemption;

(ii)

to approve the payment of the preferred basic dividend accumulated by the "Class A" Preferred Shares subject to the redemption referred to in paragraph (i) above, for a total amount of AR$ 58 million;

(iii)

to approve the payment of a distribution amount, in addition to the amount referred to in paragraph (ii) above, attributable to the non-appropriated profit amounts, for a total amount of AR$ 25 million, payable only and exclusively to those holders of "Class A" Preferred Shares subject to the redemption referred to in paragraph (i) above, who execute before August 15, 2011, a settlement agreement with the Company, to the Company's satisfaction, releasing and irrevocably and definitively terminating any claims relating to the above mentioned shares ; and

(iv)

to carry forward the balance of non-appropriated profit amounts as of December 31, 2010.

NORTEL INVERSORA S.A.

FISCAL YEAR ENDING DECEMBER 31, 2011

(In millions of Argentine pesos, except statistical and ratio data)

Consolidated Balance Sheet

2011

2010

Current assets

5,496

3,827

Non-current assets

9,399

8,353

Total assets

14,895

12,180

Current liabilities

5,555

4,691

Non-current liabilities

1,376

1,121

Total liabilities

6,931

5,812

Minority interests

3,697

2,949

Total shareholders' equity

4,267

3,419

Total liabilities and shareholder's equity

14,895

12,180

Consolidated Income Statement

2011

2010

Net revenues

18,525

14,679

Cost of services provided administrative and selling expenses

(14,502)

(11,490)

Operating Profit

4,023

3,189

Financial  results, net

235

(18)

Other, net

(476)

(314)

Income tax

(1,323)

(1,010)

Minority  interest

(1,124)

(843)

Net Income

1,335

1,004

Ratios

2011

2010

Liquidity (a)

0.99

0.82

Indebtedness (b)

0.87

0.91

(a) Current Assets to current liabilities

(b) Total liabilities to shareholders' equity plus third party interests.