Nortel Inversora S.A. Announces Consolidated First Quarter Results for the Fiscal Year Ending December 31, 2010

USA - English

• USA - English

BUENOS AIRES, Argentina, May 6 /PRNewswire-FirstCall/ -- 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. 221 million for the first quarter of fiscal year 2010.

Nortel's consolidated financial results for the first quarter of fiscal year 2010 are substantially similar 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.

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                            FINANCIAL TABLES BELOW

                            NORTEL INVERSORA S.A.
             FIRST QUARTER, FISCAL YEAR ENDING DECEMBER 31, 2010
     (In millions of Argentine pesos, except statistical and ratio data)

    Consolidated Balance Sheet (*)

                                        2010          2009

    Current assets                     3,231         3,018
    Non-current assets                 7,744         7,034
    Total assets                      10,975        10,052
    Current liabilities                4,141         4,105
    Non-current liabilities              927         1,514
    Total liabilities                  5,068         5,619
    Minority interest                  2,736         2,051
    Total shareholders' equity         3,171         2,382
    Total liabilities and
     shareholders' equity             10,975        10,052

(*) As a consequence of the application of 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.

    Consolidated Income Statement

                                                 2010         2009

    Net revenues                                3,249        2,829
    Cost of services provided
     administrative and selling expenses       (2,488)      (2,170)
    Operating Profit                              761          659
    Financial results, net                        (58)         (95)
    Other, net                                    (52)          (1)
    Income tax                                   (242)        (213)
    Minority interest                            (188)        (160)

    Net Income                                    221          190


    Ratios

                                                 2010         2009

    Liquidity  (a)                               0.78         0.74
    Indebtedness (b)                             0.86         1.27

     (a) Current Assets to current liabilities
     (b) Total liabilities to shareholders' equity plus third party interests.


    Contacts:

    Jose Gustavo Pozzi
    Nortel Inversora S.A.
    (5411) 4968-3630

SOURCE Nortel Inversora S.A.

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