Nortel Inversora S.A. Announces Consolidated First Quarter Results for the Fiscal Year Ending December 31, 2012

BUENOS AIRES, Argentina, May 7, 2012 /PRNewswire/ -- Nortel Inversora S.A. (NYSE: NTL), whose sole substantial activity is owning 54.741682% of the stock of Telecom Argentina S.A. ("Telecom") and whose sole substantial source of cash income is cash dividends and other distributions paid on such stock, today announced consolidated net income of Ps.691 million for the first quarter of fiscal year 2012, of which Ps. 365 million correspond to Nortel as its controlling shareholder.

Relevant matters

Summary of the resolutions passed by the Annual and Extraordinary Stockholders' Meeting held on April 27, 2012.

Nortel's Annual and Extraordinary Stockholders' Meeting held on April 27, 2012 approved, among other items:

• Fiscal years 2011 and 2010 Annual Report and Financial Statements.
• The allocation of the entire non-appropriated profit amount as of December 31, 2011 (Ps. 3,483 million) to a voluntary reserve created for the future distribution of dividends, due to the Company's lack of liquidity as of the date of the Stockholders' Meeting.
• The designation of Price Waterhouse & Co. as independent accountants of the Company.

Dividends

On April 27, 2012, Telecom Argentina's Annual Stockholders' Meeting approved, among other items, a cash dividend distribution in the amount of Ps. 807 million, payable as from May 10, 2012, of which Ps. 442 million will be received by Nortel.

Call to Ordinary and Extraordinary and Special Class “A” Stockholders’ Meeting.

On the date hereof, Nortel’s Board resolved to call an Ordinary and Extraordinary and Special Class “A” Stockholders’ Meeting for June 13, 2012, in order to consider, among other items, the making of scheduled redemption and preferential dividend payments in cash to Class “A” Shares, as well as a possible payment of dividends in cash to Class “B” Shares and shares of common stock. Such call has been notified to the applicable regulatory entities by means of a “relevant fact” letter.

FINANCIAL TABLES BELOW

(a) Current Assets to current liabilities
(b) Total liabilities to shareholders' equity.

Contacts:

Jorge Alberto Firpo
Nortel Inversora S.A.
5411 – 4968-3630

SOURCE Nortel Inversora S.A.