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Telecom Argentina and Cablevisión announce that they have entered into a Preliminary Merger Agreement that will allow them to become a leading provider of convergent telecommunications solutions that will fulfill the digital life of their customers

BUENOS AIRES, Argentina, July 1, 2017 /PRNewswire/ -- Telecom Argentina S.A. (NYSE: TEO, BASE: TECO2), ("Telecom Argentina"), a leading mobile and fixed telecommunications company in Argentina, as well as in Paraguay for mobile telecommunications, and Cablevisión S.A. ("Cablevisión") the leading paid TV provider and leader in the broadband market in Argentina and the second largest paid TV provider in Uruguay (in conjunction "the Companies") today announced a plan to merge their respective corporate structures and operations with the aim of creating a leading provider of convergent telecommunications services and to participate in the opening of the telecommunications sector that, according to Argentine regulations, is expected to occur beginning in January 2018.

Today the Boards of Directors of the Companies approved a Preliminary Merger Agreement. The proposed transaction follows a worldwide convergent trend towards combining the provision of fixed and mobile telecommunications services, distribution of video and internet, known as "quadruple play". The transaction will allow the combined company to become a leader in convergent solutions that will fulfill its customers' digital life and facilitate the digital operations of enterprises and corporations. The combination of the two Companies will strengthen their investment in modern, mobile technology infrastructure as well as the build out of a high speed fiber optic network.

Currently, the domestic and international telecommunications sectors are experiencing a trend of technological convergence of networks and platforms for the provision to customers of integrated solutions of voice, data, sound and images transmission services, through both fixed and wireless networks (the "Convergent Products").

The Companies have considered that their respective operating and technical structures are highly complementary and could be strengthened through a corporate integration, achieving synergies in the development of Convergent Products that will bring significant benefits to consumers, the sector and the economy in general. Moreover, the investment plans of the combined Company will allow to accelerate the development and strengthening of their networks in terms of capacity, speed, quality and diversity of services.

The Companies consider that the structural consolidation can be achieved by means of a corporate merger process pursuant to Argentine General Corporate Law.

The merger agreement reached between the Companies provides that once the required regulatory authorizations have been obtained and the corresponding corporate process has...