Item

Consolidated Net Revenues amounted to P$14,679 million (+20% vs. FY09); Mobile business in Argentina +25% vs. FY09; Internet +30% vs. FY09.

Mobile subscribers in Argentina +1.9 million (+13% vs. FY09).

Mobile Value Added Services in Argentina: +46% vs. FY09; 40% of Service Revenues.

Mobile ARPU reached P$44 in FY10 (+9% vs. FY09) and P$49 in 4Q10 (+17% vs. 4Q09).

ADSL ARPU increased to P$76 in FY10 (+15% vs. FY09); churn decreased to 1.4% from 1.8% in FY09.

Operating Profit Before Depreciation and Amortization (“OPBDA”) reached P$4,555 million (+17% vs. FY09), 31% of Net Revenues.

Operating Profit amounted to P$3,201 million (+16% vs. FY09).

Net Income reached P$1,821 million (+30% vs. FY09).

Net Cash Position: P$1,224 million, an increase of P$755 million vs. FY09 after having paid P$1,053 million in dividends in FY10.

(in million P$, except where noted)

Consolidated Net Revenues

Voice, Data and Internet

Mobile

Operating Profit before D&A

Operating Profit

Net Income

Shareholders’ equity

Net Financial Position - Cash

CAPEX (excluding materials)

Fixed lines in service (in thousand lines)

Mobile customers (in thousand)

Personal (Argentina)

Núcleo (Paraguay) -including Wimax customers-

Broadband acceses (in thousand)

Fixed line traffic (in MM minutes, Internet & Public Telephony not incl.)

Incoming/Outgoing mobile voice traffic in Arg. (in MM minutes)

Average Billing per user (ARBU) Fixed Telephony/voice (in P$)

Average Revenue per user (ARPU) Mobile Services in Arg. (in P$)

Net Revenues (MMP$)

Net Income (MMP$)

Earnings per Share (P$)

Earnings per ADR (P$)

OPBDA *

Operating Profit *

Net Income*

Clients have significantly increased in FY10, reaching 18.2 million as of the end of December 2010, representing an increase of 1.9 million since December 31, 2009.

The activities developed to increase the usage of the value added services (“VAS”) and to retain high value segments allowed Personal to increase consolidated net revenues to P$10,039 million (+24% vs. FY09).

Telecom Personal in Argentina

As of December 31, 2010, Personal surpassed 16 million subscribers in Argentina (+13% or 1.9 million vs. FY09), thus improving its market position. The overall subscriber base mix continued with 70% of prepaid subscribers and 30% postpaid (including “Cuentas claras” plans and 3G modems).

In FY10, Net Revenues reached P$9,501 million (+P$1,873 million or 25% vs. FY09) while Service Revenues (excluding handset sales) amounted to P$8,483 million (+24% vs. FY09), with 40% corresponding to value-added services (‘VAS’) revenues. VAS revenues increased vs. FY09 by 46%.

During FY10, the overall voice traffic minutes increased by 14% vs. FY09. Meanwhile, SMS traffic performance (charged incoming and outgoing messages), climbed to 4,614 million in FY10 from a monthly average of 3,034 million messages in FY09 (+52% vs. FY09). Due to this increase in traffic and VAS usage, Average Monthly Revenue per User (ARPU) increased to approximately P$44 during FY10 (+9% vs. FY09) meanwhile ARPU in 4Q10 reached P$49 (+17% vs. FY09).

During the last quarter of the year, Personal continued to extend its Personal Black portfolio incorporating exclusive handsets (such as Motorola Milestone II, Motorola Defy and Nokia N8, among others) and the launching of new promotions to its subscribers. In this sense, the focus on market position and innovation in Smartphones leverage by its strategy of Personal Black, allowed Personal to lead in Smartphones handsets sales with more than 53% of participation.

Furthermore, with the consolidation of the 3G network, that already covers 82% of population; Personal continued launching different connectivity plans that provide alternatives for the need of each client type with limited time or data volume packages, both for 3G modems and handsets.

In addition, among the most remarkable services of FY10 and specifically for Mother’s Day, Personal presented an integrated offer with new plans and benefits for Club Personal clients, together with some free services, such as Personal Email, and Pack 2.0 to access to social networks, allowed continuing incentivizing VAS usage. Also the new “BlackBerry Mail” and “BlackBerry Redes” offerings were launched and were included in the “All Inclusive Plans”.

During FY10, Personal continued with its strategy of fostering benefits such as service packs and recharges to its client base (double and triple credit).

Finally, Personal presented the second experience in development and investigation in fourth generation technology (4G) in the country. With Personal 4G, high definition video streaming tests, video calls, high speed files transfers, among others services were tested, where speeds of 50 Mb per second were exceeded. In this way, Personal continued to be distinguished as pioneer in innovation by offering the new technologies that would revolutionize mobile services.

Telecom Personal in Paraguay

By the end of December 2010, Nucleo’s subscriber base increased to approximately 1.9 million clients (+4% vs. FY09), including Wimax clients. Prepaid and Postpaid customers represented 85% and 15%, respectively.

Personal’s subsidiary in Paraguay generated revenues equivalent to P$538 million during FY10 (+22% vs. FY09) with increases in the level of ARPU.

Fixed Services (Voice, Data Transmission & Internet)

During FY10 revenues generated by fixed services amounted to P$4,640 million, +12% vs. FY09; with internet revenues growing in relative terms the most in this segment (+30% vs. FY09), followed by Data (+23% vs. FY09).

Monthly Charges and Supplementary Services increased by P$42 million, or 5% vs. FY09, to P$884 million, as a consequence of a higher number of lines in service (+1%), which surpassed 4.1 million, and a 17% increase in supplementary services.

Revenues generated by Local and Domestic Long Distance Measured Services and International Services totaled P$1,341 million, an increase of P$66 million or 5% vs. FY09. In relative terms, revenues from local calls increased the most, with 9% vs. FY09, mainly due to the incorporation of flat rate packs and, secondly, by domestic long distance traffic (+5% vs. FY09). Meanwhile, revenues from international services remained at similar levels, compared to the same period from last year.

Interconnection revenues decreased to P$435 million (-3% vs. FY09), mainly due to lowe traffic derived by the incorporation of new interconnection points with mobile operators.

Public telephony decreased to P$61 million (-P$9 million vs. FY09). Finally, other revenues totaled P$207 million (+9% vs. FY09) mainly due to higher income related to billing and collection services and fixed line equipment sales.

During FY10, the Company launched new Aladino handsets, coupled with more services to continue innovating in fixed services.

Data Transmission and Internet

Data transmission revenues amounted to P$338 million (+23% vs. FY09), where the focus was to strengthen Telecom’s position as an integrated ICT provider.

During FY10 the Virtual Central service was launched, a communications platform that combines the traditional PBX service (Transfers, rerouting of calls and redials) with advanced functions that incorporate the integration with IT tools. This IP technology based service allows savings in infrastructure costs and also updates clients’ communications.

During 4Q10, commercial offers to promote Data services were intensified in the SMEs segment. As a result, there was an annual increase of 42% in Internet and Virtual Private Networks (VPN) accesses. In this period, sales from ArnetBIZ Plus offered to professionals and businesses through a connection experience, proprietary inbox domain and presence in the web, increased by 68% vs. FY09.

As of December 31, 2010, Telecom reached 1.38 million ADSL accesses (+14% vs. FY09). These connections represented 34% of Telecom’s fixed lines in service. In addition, ADSL ARPU reached P$76 in FY10, +14% when compared to FY09 and churn reached 1.4% in FY10 (vs. 1.8% in FY09).

During 4Q10, Telecom continued enhancing broadband domestic use, under the slogan “Internet en Todo” (Internet everywhere), that positions the Internet as a tool for the different aspects of everyday life, including access to information, entertainment, security and interaction through social networks. With this concept, Arnet presented its bundled offers with other complementary services such as local calls or mobile Internet.

Following this initiative of promoting Internet as the main communication tool, the bundling offer Arnet 3 Mb Wi-Fi at home plus Arnet Mobile was launched during 4Q10. More than 15% of Arnet Broadband customers hired also Arnet Mobile.

To motivate the online sales channel, specific offers as Pack Arnet (Internet plus local calls) were launched and well accepted: in 4Q10 more than 50% of broadband adds occurred packed with local calls.

Consolidated Operating Costs

The Cost of Services Provided, Administrative Expenses and Selling Expenses totaled P$11,478 million in FY10, an increase of P$2,014 million, or +21%, vs. FY09. The increase is a consequence of higher commercial costs due to a higher volume of revenues, inflationary effects on the general cost structure, and greater expenses related to competition in the industry.

The cost breakdown is as follows:

•     Salaries and Social Security Contributions totaled P$1,880 million (+25% vs. FY09), mainly affected by increases in salaries due to the new labor agreement and the increase in employees. Regarding personnel, in the same period the incorporation of 563 employees in the mobile business was partially compensated by the decrease in headcount in the fixed line business (-234 employees vs. FY09). Total headcount at the end of the period was 15,629 employees.

•     Taxes reached P$1,261 million (+26% vs. FY09), impacted by higher rates in turnover taxes and higher municipal and provincial rates and fees paid to regulatory entities that mainly were influenced by a higher volume of revenues. It was also affected by taxes related to debit and credit tax associated to the dividend payment and to the cancellation of the Notes of Telecom Personal.

•     Network access costs (includes TLRD, Roaming, Interconnection, international settlement charges and lease of circuits) amounted to P$1,390 million, +P$18 million vs. FY09. This was mainly due to savings from stimulating on-net traffic among mobile clients.

•     Agents, prepaid card commissions and other commissions were P$1,286 million (+20% vs. FY09), mainly due to the increase in commissions paid to commercial agents associated with higher revenues from more sophisticated handsets, higher costs associated with a higher volume of acquisitions and retention of customers and higher cards sales and prepaid recharges.

•     Advertising amounted to P$451 million (+25% vs. FY09), oriented towards supporting the commercial activity in mobile and Internet services and to strengthen the Telecom Group brand position.

•     Cost of handsets sold totaled P$1,541 million (+36% vs. FY09) due to a change in the mix of handset sold, increased sales of high-end handsets and a higher number of handsets upgrades, this to stimulate VAS usage. These effects resulted in the increase of the average cost of handsets. Additionally, this was affected by the increase in Internal Tax, better known as the Technological Tax.

•     Fees for services amounted to $663 million (+33% vs. FY09), principally due to higher costs from the call centers, with more services requirements, and to the inflationary effects on the prices of these services.

•     Depreciation of Fixed and Intangible Assets reached P$1,354 million (+19% vs. FY09). Fixed-line telephony totaled P$719 million (+8% vs. FY09) and mobile services totaled P$635 million (+34% vs. FY09), due to higher investment in fixed assets.

•     Others Costs totaled P$1,652 million (+19% vs. FY09). This increase was mainly due to general increases in services such as maintenance, materials and supplies, transportation, freight and rental expenses. The decrease in bad debt expenses of 9% vs. FY09 is notable. There was also an increase in cost related to VAS, such as content offers, similar to that evidenced in recent periods.

Consolidated Financial and Holding Results

(In million P$)

Financial and Holding Results resulted in a loss of P$34 million, a decrease of P$295 million vs. FY09. This was mainly due to losses for FX results of P$99 million in FY10 (losses of P$211 million vs. FY09); and a gain in net financial interest of P$68 million in FY10 (+P$84 million vs. FY09), partially compensated by losses in holding on inventories by P$15 million in FY10 (+P$8 million vs. FY09).

Consolidated Net Financial Position

As of December 31, 2010, Net Financial Position (Cash, Cash Equivalents and current Investments minus Loans) totaled P$1,224 million in cash, an

improvement of P$755 million vs. Net Financial Position as of December 2009. This was due to the strong cash flow generation evidenced in the period that allowed the payment of P$1,053 million in dividends.

During 4Q10, Personal made the total amortization of its Series 3 Notes for an amount of approximately U$S173 million after the purchases previously performed and informed.

Consolidated Capital Expenditures

During FY10, the Company invested P$1,974 million (excluding materials). This amount was allocated to Voice, Data and Internet businesses (P$943 million) and Mobile services (P$1,031 million). In relative terms, capex reached 13% of net consolidated revenues.

Main capex projects are related to the deployment of 3G services to support the growth of mobile Internet together with the launch of innovative VAS. Moreover, with these investments, the Company foresees the expansion of ADSL services to improve transmission and speed available to clients together with the expansion of backhaul networks to meet the growing services demand of our fixed and mobile clients.

Other Relevant Matters

The Extraordinary and Ordinary Shareholders’ Meeting held on November 30, 2010 has resolved to approve the modification of the Bylaws and determine the number of Directors and Alternate Directors and the appointment of them.

Recent Relevant Matters

The Board of Directors of Telecom Argentina proposed to the Shareholders’ Meeting a cash dividend payment proposal of P$915.5 million (equivalent to P$0.93 per share).

Complementary Information –IFRS

With the aim to provide complementary information, in Annexes 9 and 10 of this release a detail of the Income Statement and Shareholders’ Equity under the new International Financial Reporting Standards (“IFRS”) were included. Additional information on the application of IFRS is included in Note 14 of the Consolidated Financial Statements.

As of December 31, 2010, Telecom had 984,380,978 shares outstanding.

(*)    Employee Stock Ownership Program

For more information, please contact the Investor Relations Department:

Pedro Insussarry

(5411) 4968 3743

Solange Barthe Dennin

(5411) 4968 3752

Ruth Fuhrmann

(5411) 4968 4448

Horacio Nicolás del Campo

(5411) 4968 6236

Cash, equivalents and investments

Trade receivables

Other current assets

Total Current Assets

Fixed & Intangible assets

Other non-current assets

Total Non Current Assets

Total Assets

Accounts payable

Loans

Taxes payable

Reserves

Other current liabilities

Total Current Liabilities

Accounts payable

Loans

Taxes payable

Reserves

Other non-current liabilities

Total Non Current Liabilities

Total Liabilities

Minority Interest

Shareholders’ equity

Total Liabilities, Minority Interest and Equity

Corporate Bonds

Banks and other financial institutions

Bank overdraft

Accrued interest

Derivatives

Total Current Loans

Banks and other financial institutions

Total Non Current Loans

Total Loans

Derivatives valuation effect for notes (Other Current Credits)

Cash and cash equivalents

Net Financial Position- Cash

Net revenues

Cost of services

Gross Profit

Administrative expenses

Selling expenses

Operating Profit

Equity income from related companies

Financial and holding results

Other expenses, net

Results from ordinary operations

Taxes on income

Minority interest

Net Income

Operating Profit before D & A

As a % of Net Revenues

Financial and Holding results

Financial results generated by assets

Interest

Foreign currency exchange results

Holding results generated by inventories

Other financial results

Total Financial results generated by assets

Financial results generated by liabilities

Interest

Foreign currency exchange results and loss on derivatives

Other financial results

Total Financial results generated by liabilities

Total Financial and holding results

Net revenues

Cost of services

Gross Profit

Administrative expenses

Selling expenses

Operating Profit

Financial and holding results

Other expenses, net

Results from ordinary operations

Taxes on income

Minority interest

Net Income

Operating Profit before D & A

As a % of Net Revenues

Fixed Telephony

Measured service Local

Measured service DLD

Monthly charges

Public telephones

Interconnection

Others

International Telephony

Data transmission & Internet

Data

Internet

Measured service

Monthly charges

Modems

MobileTelephony

Telecom Personal

Monthly fee and measured service

Pre-paid

Calling Party Pays

TLRD *

VAS

Handset sales

Others (Includes Roaming)

Núcleo

Monthly fee and measured service

Pre-paid

Calling Party Pays

TLRD *

VAS

Internet - Wimax

Handset sales

Others (Includes Roaming)

Total net revenues

Fixed Telephony

Measured service Local

Measured service DLD

Monthly charges

Public telephones

Interconnection

Others

International Telephony

Data transmission & Internet

Data

Internet

Measured service

Monthly charges

Modems

MobileTelephony

Telecom Personal