Nortel Inversora S.A. Announces Consolidated Annual Results for the Fiscal Year Ending December 31, 2012

  Nortel Inversora S.A. Announces Consolidated Annual Results for the Fiscal
                        Year Ending December 31, 2012

PR Newswire

BUENOS AIRES, Argentina, Feb. 28, 2013

BUENOS AIRES, Argentina, Feb. 28, 2013 /PRNewswire/ -- 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.2,675 million for the fiscal
year ended December 31, 2012 of which Ps 1,413 million correspond to Nortel
as controlling shareholder.

Relevant matters

Dividends

On April 27, 2012, Telecom Argentina's Annual Stockholders Meeting approved,
among other ítems, a cash dividend distribution in the amount of Ps. 807
million, payable as from May 10, 2012, of which Ps. 442 million will be
received by Nortel.

Summary of the Resolutions approved by the Ordinary and Extraordinary General
and Special Class A Preferred Stockholders' Meeting and the Board Meeting held
on June 13 and June 14, 2012, respectively

The above referred Stockholders' Meeting and Board Meeting resolved:

1.)the scheduled redemption of 401,794 Class "A" Preferred Shares, i.e.,
100% of
 theoutstanding Class "A" Preferred Shares, for an aggregate
redemption price of Ps. 363
 million;

2.)payment of Ps. 81.7 million to cancel 100% of the outstanding
preferred basic dividend
 corresponding as of such date to the Class "A" Preferred Shares;

3.) payment of Ps. 22.8 million as additional dividend corresponding to
the Class "A" Preferred
 Shares for fiscal year 2011;

4.) payment of Ps. 8.3 million as additional distribution, payable only
and exclusively to those
 holders of Class "A" Preferred Shares who have entered into a
settlement agreement with the
 Company, to the Company's satisfaction, before June 27, 2012,
releasing and irrevocably,
finally and definitively terminating any claim relating to the Class
"A" Preferred Shares;

5.)payment of Ps.5.4 million to the holders of Class "B" Preferred Shares
as dividend
 corresponding to fiscal year 2011; and

6.)payment ofPs.5.6 million to the holders of ordinary stock as dividend
corresponding to fiscal
 year 2011.

The scheduled redemption referred to in item 1) above was reflected in the
Company's books as a reduction of the accounts Capital Stock, Inflation
Adjustment of Capital Stock and Share Issue Premiums, while payments referred
to in items 2) to 6) were reflected as a reduction of the Voluntary Reserve
for the Future Distribution of Dividends..

FINANCIAL TABLES BELOW

NORTEL INVERSORA S.A.
FISCAL YEAR ENDING DECEMBER 31, 2012
(In millions of Argentine pesos, except statistical and ratio data)

Consolidated Balance Sheet                       2012       2011
Current assets                                 7,000      5,516
Non-current assets                                10,826     9,874
Total assets                                 17,826     15,390
Current liabilities                             5,895      5,958
Non-current liabilities                     1,768      1,635
Total liabilities                               7,663      7,593
Equity attributable to Nortel                    5,457      4,022
Equity attributable non-controlling interest 4,706      3,775
Total equity                                   10,163     7,797
Total liabilities and equity                   17,826     15,390
Consolidated Income Statement
                                                   2012       2011
Total sales and other income                      22,196     18,528
Opeating costs                                ( 18,244) (14,695)
Operating Income                              3,952      3.833
Financial results, net                      187        ----
Net income before income tax expense               4,139      3,833
Income tax expense                           (1,464)    (1,394)
Net Income                                        2,675      2,439
Other comprehensive income, net of tax         90         27
Total comprehensive income                  2,765      2,466
Ratios
                                                   2012       2011
Liquidity (a)                             1.19       0.93
Indebtedness (b)                                0.75       0.97

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

Contacts:
Jorge Firpo
General Manager
Nortel Inversora S.A.
(5411) 49683631

SOURCE Nortel Inversora S.A.
 
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