Nortel Inversora S.A. Announces Consolidated Nine-Month Period and Third Quarter Results for the Fiscal Year Ending December 31, 2011

BUENOS AIRES, Argentina, Nov. 3, 2011 /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. 1,008  million for the nine-month period of fiscal year 2011.

Nortel's consolidated financial results for the third quarter of fiscal year 2011 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

The Annual and Extraordinary General Meeting and Special Class "A" Preferred Stockholders Meeting held on April 7, 2011 – together with the meeting of the Board of Directors held on April 18, 2011 in connection with the last three issues-approved, among other matters:

• The Annual Report and Financial Statements as of December 31, 2010
• The appointment of Price Waterhouse & Co. as external auditors of the Company
• The ratification of the payment of a provisional dividend declared by the Board of Directors on its October 5, 2010 meeting
• The scheduled redemption of 242,454 Class "A" Preferred Shares for a total redemption price of AR$ 196,232,576.23
• The payment of the basic dividend accumulated by the Class "A" Preferred Shares subject to the scheduled redemption mentioned above for a total amount of AR$32,408,111.67

The Annual and Extraordinary General Meeting and Special Class "A" Preferred Stockholders Meeting held on August 2, 2011, together with the meeting of the Board of Directors held on August 17, 2011, approved:

• The scheduled redemption of 418,202 Class "A" Preferred Shares for a total redemption price of AR$ 349,069,142.39
• The payment of the basic dividend accumulated by the Class "A" Preferred Shares subject to the scheduled redemption mentioned above for a total amount of AR$ 57,634,577.63
• The distribution of AR$ 24,817,545.21 as an additional distribution, payable only and exclusively to those holders of Class "A" Preferred Shares subject to redemption who have executed, before August 15, 2011, a settlement agreement with the Company, to the Company's satisfaction, releasing and irrevocably and definitively terminating any claim relating to the redeemed shares

FINANCIAL TABLES BELOW

(*) As a consequence of the application of the new rules, the comparative information for the intermediate periods of the Annual Financial Statements should be the one corresponding to the last complete fiscal year. The comparative information of the Income Statement, evolution of Shareholders' Equity and Cash Flow Statements should be the one corresponding to the equivalent period of the previous fiscal year.

Jorge Alberto Firpo
Responsible for Market Relations

Contacts:
Jorge Firpo
Nortel Inversora S.A.
(5411) 4 968-3630

SOURCE Nortel Inversora S.A.