BUENOS AIRES, Oct. 7 /PRNewswire-FirstCall/ -- Telecom Argentina (BASE: TECO2; NYSE: TEO), one of Argentina's leading telecommunications groups, announced today that, subject to any change in Argentine Central Bank regulations, its intends to make a Note Payment (as defined in the Notes) on October 15, 2008 or as soon as practicable thereafter. This Note Payment will result in the payment of the remaining 55% of the principal amortization payment scheduled to be paid on October 15, 2011. On the same date, Telecom Argentina intends to make the corresponding interest payment. Series Currency Due Date ISIN No. % of the % of Original Original Principal Principal Amount Outstanding Amount after the Note Payment Series A US$ 2014 US879273AK60 3.9270% 41.160% XS0218481744 Not Listed Euro 2014 XS0218482122 3.9270% 41.160% XS0218482395 Not Listed AR$ 2014 Not Listed 3.9270% 41.160% JPY 2014 Not Listed 3.9270% 41.160% Series B US$ 2011 US879273AM27 4.1250% 0.000% XS0218482981 Not Listed The payment shall be made to the holders of the Notes held in global form through the settlement systems of DTC, Euroclear or Clearstream, as applicable. Payments to holders of Notes in certificated form will be made by wire transfer to the accounts of the respective holders. Telecom is the parent company of a leading telecommunications group in Argentina, where it offers directly or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay. The Company commenced operations on November 8, 1990, upon the Argentine Government's transfer of the telecommunications system in the northern region of Argentina. Nortel Inversora S.A. ("Nortel"), which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecom's common stock. Nortel is a holding company where the common stock (approximately 68% of capital stock) is owned by Sofora Telecomunicaciones S.A.. Additionally, Nortel capital stock is comprised of preferred shares that are held by minority shareholders. As of June 30, 2008, Telecom had 984,380,978 shares outstanding. For more information, please contact the Investor Relations Department: Pedro Insussarry 54-11-4968-3743 Solange Barthe Dennin 54-11-4968-3752 Evangelina Sanchez 54-11-4968-3718 Ruth Fuhrmann 54-11-4968-4448 Voice Mail: 54-11-4968-3628 Fax: 54-11-4313-5842 E-mail: For information about Telecom Group services, visit: http://www.telecom.com.ar/http://www.personal.com.ar/http://www.personal.com.py/http://www.arnet.com.ar/ Disclaimer This document may contain statements that could constitute forward-looking statements, including, but not limited to, the Company's expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; the effects of its debt restructuring process; the impact of emergency laws enacted by the Argentine Government; and the impact of rate changes and competition on the Company's future financial performance. Forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "projects," "intends," "should," "seeks," "estimates," "future" or other similar expressions. Forward-looking statements involve risks and uncertainties that could significantly affect the Company's expected results. The risks and uncertainties include, but are not limited to, the impact of emergency laws enacted by the Argentine government that have resulted in the repeal of Argentina's Convertibility law, devaluation of the peso, various changes in restrictions on the ability to exchange pesos into foreign currencies, and currency transfer policy generally, the "pesification" of tariffs charged for public services, the elimination of indexes to adjust rates charged for public services and the Executive branch announcement to renegotiate the terms of the concessions granted to public service providers, including Telecom. Due to extensive changes in laws and economic and business conditions in Argentina, it is difficult to predict the impact of these changes on the Company's financial condition. Other factors may include, but are not limited to, the evolution of the economy in Argentina, growing inflationary pressure and evolution in consumer spending and the outcome of certain legal proceedings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. The Company undertakes no obligation to release publicly the results of any revisions to forward-looking statements which may be made to reflect events and circumstances after the date of this press release, including, without limitation, changes in the Company's business or to reflect the occurrence of unanticipated events. Readers are encouraged to consult the Company's Annual Report on Form 20-F, as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission for further information concerning risks and uncertainties faced by Telecom. DATASOURCE: Telecom Argentina S.A. CONTACT: Pedro Insussarry, +011-54-11-4968-3743, Solange Barthe Dennin, +011-54-11-4968-3752, Evangelina Sanchez, +011-54-11-4968-3718, Ruth Fuhrmann, +011-54-11-4968-4448, all of Telecom Argentina, Voice Mail, +011-54-11-4968- 3628, Fax, +011-54-11-4313-5842, Web site: http://www.telecom.com.ar/ http://www.personal.com.ar/ http://www.personal.com.py/ http://www.arnet.com.ar/

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