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

First Call Analyst:
FCMN Contact:

Source: Nortel Inversora S.A.

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

2008-05-09 17:39:30 0358062 PRNEWSWIRE