Telecom Argentina Announces Its Intention to Make a Note Payment on Series A and B Notes

BUENOS AIRES, Argentina, April 6 /PRNewswire-FirstCall/ -- Telecom Argentina S.A. (BASE: TECO2) ("Telecom Argentina" or the "Company") announced today its intention to make a Note Payment (as defined in the Indenture of the Notes) on Series A Notes (due 2014) and Series B Notes (due 2011), together the "Notes," on April 18, 2006, or as soon as practicable thereafter. This Note Payment will result in the payment in whole of the principal amortization scheduled to be paid on October 15, 2008, and April 15, 2009, (in total equivalent to 7.54% of Serie A Notes and 15.00% of Series B Notes).

The payment of the principal amortization scheduled for October 15, 2008, will be made entirely with Excess Cash as of December 31, 2005. The principal amortization payment scheduled for April 15, 2009, will be partially made with Excess Cash as of December 31, 2005, and partially made as a voluntary prepayment. The voluntary prepayment will result in a reduction of Excess Cash amounts payable under the Notes on the next Mandatory Prepayment Date (as defined in the Indenture of the Notes).

Payment shall be made to the holders of the Notes held in global form through the settlement systems of DTC, Euroclear and 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 Argentina is a company incorporated under the laws of Argentina with its registered office at Alicia Moreau de Justo 50, Piso 10, C1107AAB, Buenos Aires, Argentina. Telecom Argentina is one of Argentina's largest telecommunications operators. It provides local and long distance telephony, mobile communications (through its subsidiary Telecom Personal), data and Internet access services in Argentina. It also operates a mobile license in Paraguay through one of its subsidiaries. Telecom Argentina common stock is listed on the Buenos Aires Stock Exchange under the ticker "TECO2" and Telecom Argentina ADSs are listed on the New York Stock Exchange under the ticker "TEO".

Disclaimer:

This document may contain statements that could constitute forward-looking statements. 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 Telecom Argentina's expected results. The risks and uncertainties include, but are not limited to, the risks and uncertainties disclosed under the caption "Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2004. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this document. Telecom Argentina 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 Telecom Argentina's business or to reflect the occurrence of unanticipated events. Readers are encouraged to consult Telecom Argentina's annual report on Form 20-F, as well as periodic filings submitted on Form 6-K, which are filed with or furnished to the SEC.

For additional information, please contact: Telecom Argentina S.A. Investor Relations Department Pedro Insussarry Mariano Martire Gaston Urbina Astrid Burger Tel: (54 11) 4968-3628 Fax: (54-11) 4313-5842 Email : relinver@ta.telecom.com.ar