Nortel Inversora S.A. Announces Consolidated First Quarter Results for the Fiscal Year Ending December 31, 2008

BUENOS AIRES, Argentina, May 9 /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. 148 million for the first quarter of fiscal year 2008.

Nortel's consolidated financial results for the first quarter of fiscal year 2008 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.

Summary of the resolutions passed by the General Ordinary Shareholders' Meeting, and the Class A Preferred Stockholders Special Meeting held on April 30, 2008.

On April 30, 2008, Nortel held its General Ordinary Shareholders' Meeting and Class A Preferred Stockholders' Special Meeting. Among other points, the Shareholders' Meetings approved:

    -- Fiscal year 2007 Annual Report and Financial Statements.
    -- The proposal to increase the legal reserve (5% of the fiscal year
       retained earnings) and transfer to the new fiscal year the entire
       balance as of December 31, 2007 of positive retained earnings.
    -- The election of regular and alternate Board members and the election of
       regular and alternate members of the Supervisory Committee (for the
       20th fiscal year).
    -- The auditing Committee's budget for Fiscal Year 2008 .
    -- The designation of Price Waterhouse & Co. as external auditors of the
       Company.


                            FINANCIAL TABLES BELOW

                            NORTEL INVERSORA S.A.
             FIRST QUARTER, FISCAL YEAR ENDING DECEMBER 31, 2008
     (In millions of Argentine pesos, except statistical and ratio data)

    Consolidated Balance Sheet (*)
                                                     2008          2007

    Current assets                                  3,187         2,384
    Non-current assets                              6,524         6,786
    Total assets                                    9,711         9,170
    Current liabilities                             3,790         3,647
    Non-current liabilities                         2,521         2,419
    Total liabilities                               6,311         6,066
    Minority interests                              1,583         1,449
    Total shareholders' equity                      1,817         1,655
    Total liabilities and shareholder's equity      9,711         9,170


    (*) 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.


    Consolidated Income Statement

                                                  2008           2007

    Net revenues                                 2,480          2,058
    Cost of services provided
     administrative and selling expenses        (1,947)        (1,700)
    Operating Profit                               533            358
    Equity gain from related companies            ----           ----
    Financial results, net                         (60)          (132)
    Other,net                                      (47)           (33)
    Income tax                                    (149)           (52)
    Minority interest                             (129)           (65)
    Net loss from discontinued operations       (-----)            (2)

    Net Income                                     148             74


    Ratios
                                                  2008           2007
    Liquidity  (a)                                0.84           0.65
    Indebtedness (b)                              1.86           1.95

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


    Contact:
    Jose Gustavo Pozzi
    General Manager
    Nortel Inversora S.A.
    (5411) 4 968-3630