Nortel Inversora S.A. Announces Consolidated Nine-Month Period and Third Quarter Results for the Fiscal Year Ending December 31, 2010

BUENOS AIRES, Argentina, Nov. 3, 2010 /PRNewswire-FirstCall/ -- Nortel Inversora S.A. (NYSE: NTL), whose substantial activity is owning 54.741682% of the stock of Telecom Argentina S.A. ("Telecom") and whose substantial source of cash income is cash dividends and other distributions paid on such stock, today announced consolidated net income of Ps. 726 million for the nine-month period of fiscal year 2010.

Nortel's consolidated financial results for the third quarter of fiscal year 2010 are substantially identical to Telecom's results for the same period, after accounting for minority interest and financial income and expenses at the holding-company level.

Relevant matters

Summary of the resolutions passed by the Annual and Extraordinary and Special Class A Preferred Stockholders' Meeting held on April 30, 2010.

On April 30, 2010, Nortel held its Annual and Extraordinary and Special Class A Preferred Stockholders' Meeting. Among other points, the Shareholders' Meetings approved:

• Fiscal years 2008 and 2009 Annual Reports and Financial Statements.
• The proposal to carry forward all non-appropriated profit amounts as of December 2009, due to the Company's lack of liquidity.
• The designation of Price Waterhouse & Co. as independent accountants of the Company.

Dividends

On October 5, 2010, the Board of Directors of the Company approved the distribution to the Class A preferred shares of a provisional dividend in cash -- subject to consideration by the next Annual Meeting that will consider the 2010 fiscal year's results -- for an amount of Ar$ 356,199,536.88, which was made available to the Class A preferred shareholders on October 22, 2010.

Summary of the resolutions passed by the Extraordinary General Stockholders' Meeting and the General and Special Class A Preferred Stockholders' Meeting, both of which were held on October 26, 2010.

The Extraordinary General Stockholders' Meeting and the General and Special Class A Preferred Stockholders' Meeting, both of which were held on October 26, 2010, approved, among others:

• The amendment to Article 15 of Nortel's by-laws.
• The election of active and alternate members of the Board of Directors and the Supervisory Committee

SOURCE Nortel Inversora S.A.