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

BUENOS AIRES, Argentina, March 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. 519 million for the fiscal year ended December 31, 2008.

Nortel's consolidated financial results for the fiscal year ended December 31, 2008 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.

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.

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                          FINANCIAL TABLES BELOW

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

  Consolidated Balance Sheet                    2008              2007


  Current assets                                2,592            2,384
  Non-current assets                            7,051            6,786
  Total assets                                  9,643            9,170
  Current liabilities                           4,067            3,647
  Non-current liabilities                       1,487            2,419
  Total liabilities                             5,554            6,066
  Minority interests                            1,900            1,449
  Total shareholders' equity                    2,189            1,655
  Total liabilities and shareholder's equity    9,643            9,170



  Consolidated Income Statement

                                                 2008             2007
  Net revenues                                 10,608            9,074
  Cost of services provided
  administrative and selling expenses          (8,570)          (7,441)
  Operating Profit                              2,038            1,633

  Financial results, net                         (266)            (441)
  Other, net                                     (271)            (101)
  Income tax                                     (535)            (292)
  Minority interest                              (447)            (377)
  Net Income before discontinued operations       519              422
  Results from discontinued operations            ---               56
  Net Income                                      519              478


  Ratios

                                           2008                    2007

  Liquidity (a)                            0.64                    0.65
  Indebtedness (b)                         1.36                    1.95

  (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) 4 968-3630


DATASOURCE: Nortel Inversora S.A.



CONTACT: Jose Gustavo Pozzi, Nortel Inversora S.A., +011-5411-4-968-3630

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