Telecom Argentina Announces a Higher Level of Investments

BUENOS AIRES, Argentina, April 27, 2012 /PRNewswire/ -- Telecom Argentina (NYSE: TEO, BASE: TECO2), ("Telecom Argentina" or the "Company"), one of the leading telecommunications groups in Argentina, informed today at the Annual Shareholders' Meeting about the development of the Argentine telecommunication sector evidenced in recent years and the performance of the Telecom Group, that during this period, registers a growth rate higher than the average of the market. Despite the high penetration levels of the telecommunication services in Argentina, the Company still expects sustained growth rates for the forthcoming years.

In 2011, P$3.2 billion were invested (23% more than 2011) and at the Annual Shareholders' Meeting the Company announced that, following the expected growth and to be able to provide more and better services, it is expected to increase the level of investments in 2012 to P$4.5 billion (42% more that 2011).

In addition, the Annual Shareholders Meeting resolved to distribute a cash dividend of P$807 million (equivalent to P$0.82 per share).

The Summary of the resolutions passed by the Annual Shareholders Meeting held today will be available at www.telecom.com.ar/inversores.

For any additional questions, please contact the following persons of the Investor Relations office:

Tel: (5411) 4968 3628
Fax: (5411) 4968 3616
E-mail: [email protected]

Telecom is the parent company of a leading telecommunications group in Argentina, where it offers, either or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay. The Company commenced operations on November 8, 1990, upon the Argentine government's transfer of the telecommunications system in the northern region of Argentina.

Nortel Inversora S.A. ("Nortel"), which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecom's common stock. Nortel is a holding company whose common stock (approximately 74% of capital stock) is owned by Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock comprised of preferred shares that are held by minority shareholders.

As of April 27, 2012, Telecom had 984,380,978 shares outstanding.

(*) Employee Stock Ownership Program

For information about Telecom Group services, visit:

www.telecom.com.ar
www.personal.com.ar
www.personal.com.py
www.arnet.com.ar

Disclaimer

This document may contain statements that could constitute forward-looking statements, including, but not limited to, the Company's expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; the effects of its debt restructuring process; the impact of emergency laws enacted by the Argentine Government; and the impact of rate changes and competition on the Company's future financial performance. Forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "projects," "intends," "should," "seeks," "estimates," "future" or other similar expressions. Forward-looking statements involve risks and uncertainties that could significantly affect the Company's expected results. The risks and uncertainties include, but are not limited to, the impact of emergency laws enacted by the Argentine government that have resulted in the repeal of Argentina's Convertibility law, devaluation of the peso, various changes in restrictions on the ability to exchange pesos into foreign currencies,  and currency transfer policy generally, the "pesification" of tariffs charged for public services, the elimination of indexes to adjust rates charged for public services and the Executive branch announcement to renegotiate the terms of the concessions granted to public service providers, including Telecom. Due to extensive changes in laws and economic and business conditions in Argentina, it is difficult to predict the impact of these changes on the Company's financial condition. Other factors may include, but are not limited to, the evolution of the economy in Argentina, growing inflationary pressure and evolution in consumer spending and the outcome of certain legal proceedings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. The Company undertakes no obligation to release publicly the results of any revisions to forward-looking statements which may be made to reflect events and circumstances after the date of this press release, including, without limitation, changes in the Company's business or to reflect the occurrence of unanticipated events. Readers are encouraged to consult the Company's Annual Report on Form 20-F, as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission for further information concerning risks and uncertainties faced by Telecom.

Contacts:
Pedro Insussarry
Solange Barthe Dennin
Telecom Argentina
(5411) 4968 3743/3752

SOURCE Telecom Argentina