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TNE (million) (%)

TNE ARPU (R$) 98: 60. 10 99: 62. 50 00: 64. 20 R$8. 1 B R$5. 2 B R$6. 2 B CAGR 25. 5%

TNE Gross Revenue R$2, 288 mm R$2, 996 mm 67% 65%

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TNE LT 2, 044. 8 DEBT PROFILE 785. 9 ST Total Debt: 2, 830. 7

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TNE 2000 2001 2003 Lines Installed (million) 11. 9 13. 5 N. A. Service available to communities larger than (inhabitants) N. A. 1, 000 600 Covered Localities 40% 60% 100% Maximum waiting time for line installation N. A. 4 weeks 2 weeks Pay Phones (thousand) 402 483 7. 5/1000 Pop

TNE 2001 CAPEX : R$ 8. 4 Billion

TNE DLD Data Services

TNE Region I Originates 35% Receives 40% Brazil: 40. 5 billion minutes 28% 2% 3% 5% 9% 20% Region II Originates 26% Receives 27% 5% 3% 25% Region III Originates 39% Receives 33%

TNE CAGR 18% CAGR 7. 5% Region III Region I

TNE Other Telemar Player A Telemar National International

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TNE 16. 1% 2000 21% 2005

TNE Description B 2 B commerce through portals and related infrastructure Complex applications with Customization and integration Co-location and hosting services Application and software hosting Value added services Vo. IP, security, management and other IP Connectivity Dial-up and broadband connection Traditional data communication services Access to IP backbone New Businesses

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TNE This presentation contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements and involve inherent risks and uncertainties. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

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