1. Annual Goldman Sachs Latin American Investment Forum March 13th & 14th, 2003

2. RJ-AAA-AAMMDD 1 Overview – December/2002 Largest integrated telecom company in Brazil –15.1 million fixed lines in service (Dec/02) –1.4 million mobile subscribers (Dec/02) Concession Area –65% of Brazilian territory/93 million people –40% of country’s GDP –Over 21 million households Leadership in local services (98% market share) National and International long distance services Regional Mobile services (GSM) National Data, Corporate & Value Added Services TNLP4: most liquid stock on Brazilian market TNE: most liquid Brazilian ADR on NYSE Free Float: 82% of total shares Level 2 ADR (NYSE: TNE): 29% of total shares Market value: US$ 3.0 billion (Jan/03)

3. RJ-AAA-AAMMDD 2 *Controlling Shareholder (53% of voting shares) TNE – SHAREHOLDERS’ STRUCTURE Telemar Participações S.A.* Free float Tele Norte Leste Participações S.A.(TNE) Free float = 19.2% Treasury stock = 1.6% 100.0%81.0%100.0% Norte Leste (TMAR) Treasury 100.0%

4. RJ-AAA-AAMMDD 3 TNE – CAPITAL STRUCTURE *53% of TNE common shares** Including Treasury Stock Capital R$ 4,477 million Tele Norte Leste Participações S.A. (TNE) Telemar Participações S.A. Free float 18.3%81.7% BNDESPar Fiago AG Telecom ASSECA Participações L.F. Tel BrasilCap Brasil Veículos Lexpart Part. Brasil 52.7% NYSE 29.0% 127,949 383,846 255,897 Common Preferred Total Shares 1/3 2/3

5. RJ-AAA-AAMMDD 4 CORPORATE STRUCTURE General Shareholders’ Meeting 11 Board members (3 licensed) Board Committees [Finance; Procurement & CAPEX; Compensation / Stock Option Plan] Board of Directors 5 members, appointed by: –Controlling Shareholder (Telemar Participações) - 3 –Minority Shareholders (voting shares) -1 –Minority Shareholders (preferred shares) -1 Objectives: review and approve the Company’s accounting issues and procedures Fiscal Committee 2 members: TMAR´s and Oi’s CEO Executive Committee PricewaterhouseCoopers Independent Accountants

6. RJ-AAA-AAMMDD 5 All shares have the right to receive a minimum annual payment of 25% of adjusted net income, but Preferred Shares (and ADR) are entitled to a minimum of  6% of the Company´s Capital, or Whichever is higher  3% of the Company´s Shareholders´ Equity DIVIDEND POLICY TNE TMAR All shares have the right to receive a minimum annual payment of 25% of adjusted net income, but Preferred shares are entitled to:  Class A Shares (TMAR 5): 10% higher dividend than the one paid to the Common Shares  Class B Shares (TMAR 6): 10% of the Company´s Capital (allocated to this class)

7. RJ-AAA-AAMMDD 6 MANAGING STRUCTURE Audit Committee Fiscal Committee Board of Directors TNE Executive Committee Controlling Procurement Treasury/ Investor Relations CFO Strategy and Regulation Legal Counsel Financial Planning Asset Management Public Relations Internal Audit Oi CEOTMAR CEO TMAR

8. RJ-AAA-AAMMDD 7 MAIN ACHIEVEMENTS - Optimization of Resources; - Process Standardization; - Management Centralization; -Merger of wireline companies; -Better utilization of tax loss carry-forwards Restructuring 16  1 Processes Services Market Approach 16 Companies 16 IT Systems 15 Network Platforms 23 Network Management Centers 116 Call Centers Local Voice and regional LD; Regional Data Communic. Geographic 1998 Local & Advanced Voice Domestic & International LD Nationwide Data Transmission Contact Center Network Management / Internet Management/Processes/IT Services Market Vision Customer Segmentation All Unified International 2002 Platform Expansion

9. RJ-AAA-AAMMDD 8 ANATEL TARGETS: REAPING THE BENEFITS Oi’s operational launching National long distance service International long distance service Nationwide data service

10. RJ-AAA-AAMMDD 9 WIRELINE PLATFORM AND UTILIZATION RATE Million Lines in service (LIS) Million Lines installed (LI) *Acquisition of the Company Utilization rate (wireline) July 1998*1998199920002001 89% 93% 92% 82% CAGR LIS = 20.4% + 110% 2002 86%

11. RJ-AAA-AAMMDD 10 REVENUE GROWTH Gross revenue Net revenue 19981999200020012002 CAGR = 23.4% + 132% +18% YoY R$ Mn

12. RJ-AAA-AAMMDD 11 *Ex depreciation and amortization OPERATING EXPENSES* R$ Mn *Ex depreciation and amortization 1998 Cost of services Interconnection Selling expenses G&A and other expenses 1999200020012002 3,470 3,488 4,095 6,5456,584 2002 6,584 2001 6,545 2001 2002

13. RJ-AAA-AAMMDD 12 EMPLOYEES EVOLUTION Total wireline Consolidated (including Contax and Oi)

14. RJ-AAA-AAMMDD 13 BAD DEBT PROVISIONS % of gross revenue One time adjustments

15. RJ-AAA-AAMMDD 14 EBITDA margin (%) EBITDA EVOLUTION – TNE 19981999200020012002 R$ Mn Net revenue EBITDA 98 02 01 00 99

16. RJ-AAA-AAMMDD 15 EMPLOYEE PRODUCTIVITY – TMAR *1998, 1999 and 2000 pro-form Lines in service/employee 1998*1999*2000*20012002 +375% 1998*1999*2000*20012002 Net revenue/employee R$ thousand +490% 1998*1999*2000*20012002 EBITDA/employee R$ thousand +700%

17. RJ-AAA-AAMMDD 16 PRODUCTIVITY RATIOS – TMAR R$ per average line in service (ALIS) Cash Costs/ALISEBITDA/ALISNet revenue/ ALIS 1998*1999*2000*20012002 +7% -19% +60% 1998*1999*2000*200120021998*1999*2000*20012002

18. RJ-AAA-AAMMDD 17 FINANCIAL RESULTS R$ Mn Brazilian Currency devaluation * Gross of R$ 715 million of interest expenses on swap operations. *

19. RJ-AAA-AAMMDD 18 CONSOLIDATED CAPEX - TNE R$ Mn Wireline Wireless 17.1% 99.6% 34.5% 36.1% 48.5% 19981999200020012002 CAPEX / Net Revenue 10,060 2,031 2,000

20. RJ-AAA-AAMMDD 19 CONSOLIDATED NET DEBT R$ Mn Total debt Short term Long term (-) Cash (-) Long term financ. invest. (=) Net debt R$ MnDec/01 8,937 1,388 7,549 (1,235) - 7,702 Dec/02 10,774 1,769 9,006 (1,513) (141) 9,121

21. RJ-AAA-AAMMDD 20 CONSOLIDATED DEBT PROFILE – CURRENCY & COST (DEC/02) % CurrencyInterest Index CurrencyCost (% p.a.) US$Libor + 5 Basket12.3 Real23.2 Cost of Debt

22. RJ-AAA-AAMMDD 21 CONSOLIDATED DEBT PROFILE – REPAYMENT SCHEDULE (DEC/02) 20032004200520062009 onwards Total debt: R$ 10,774 Mn 20072008 1st half 2nd half

23. RJ-AAA-AAMMDD 22 WIRELESS PROJECT ROLLOUT  Oi ~ 400 cities covered; 48 million people GPRS coverage in 6 main capitals 2,467 sites (BTS) CAPEX optimization (co-siting: 971 in / 531 out) International roaming Main suppliers: Nokia, Siemens, Alcatel, Ericsson 1,824 points of sales (breaking exclusivity of A & B band agreements) Diversified channels with high capillarity –Retail, specialized agents/dealers, stores, telesales Corporate sales effort combined with Telemar Tight headcount structure: 846 employees Infrastructure sharing Outsourcing (including call centers) Synergies with Telemar Strong brand name Coverage Distribution Resource optimization Coverage focused on profitable areas Consumer and corporate focus through high capillarity and diversity of channels Focus on profitable growth, minimizing OPEX and CAPEX

24. RJ-AAA-AAMMDD 23 Oi  POST-LAUNCHING RESULTS Initial targets (July/2002)First achievements (December/2002) Innovative campaign: 31 years Differentiated service plans Diversified handsets offer 500,000 clients in 12 months ARPU of R$ 26 MIX Pre/Post: 90%/10% Market share and gross additions in line with fair market share 1,400,000 clients in just 6 months ARPU R$ 33 (first 6 months) MIX Pre/Post: 80%/20% (6 months) Market share and gross additions well above fair market share

25. RJ-AAA-AAMMDD 24 Jul/02Aug/02Sep/02Oct/02Dec/02Nov/02 79% 21% 81% 19% 80% 20% 78% 22% 78% 22% 80% 20% 179 386 502 677 978 1,401 Prepaid Post-paid Oi’s SUBSCRIBER BASE – MONTHLY EVOLUTION Thousands of subscribers

26. RJ-AAA-AAMMDD 25 REVENUE GROWTH STRATEGY Local Service Mobility Data & Corporate Long Distance Integrated Strategy

27. RJ-AAA-AAMMDD 26 REVENUE GROWTH STRATEGY Local Service Mobility Data & Corporate Long Distance Maintain leadership in home market Advanced voice services (corporate/middle market/SOHO) Best carrier’s carrier – network leverage (home market) Increase ARPU Value added services Reduce interconnection costs (Fixed to Mobile) Platform Growth in line with GDP Increase Value Added Services

28. RJ-AAA-AAMMDD 27 REVENUE GROWTH STRATEGY Data & Corporate Local Service Mobility Data & Corporate Long Distance Increase offer to SME (home market) ADSL (high end/SOHO/small businesses) Nationwide services (corporate level) Leverage on national backbone (Telemar + Pegasus) Competitive Service Level Agreements Opportunity to Increase Market Share

29. RJ-AAA-AAMMDD 28 REVENUE GROWTH STRATEGY Long Distance Local Service Mobility Data & Corporate Long Distance Leadership in home market Conquer new markets (inter- regional/international/SPM – dial code) Protect existing market –Retail: loyalty/retention programs + promotions –Corporate: best quality (call completion/billing) + competitive service plans (discounts/volume) Offer of New Services (Increase Market Share)

30. RJ-AAA-AAMMDD 29 REVENUE GROWTH STRATEGY Mobile services Local Service Mobility Data & Corporate Long Distance Deepen market segmentation (MTV & Celebrities) Stimulate “DATA” + SMS Growth Focus on Corporate Businesses Leverage on competitive advantages –Synergies with wireline company (TMAR) –Regional coverage –GSM technology (speed & features) Low handset subsidies/aggressive service plans Increase national & international roaming New Technology + Migration Fixed to Mobile

31. RJ-AAA-AAMMDD 30 OUTLOOK 2003 Platform: Wireline: in line with GDP Wireless: +/- 1 million adds Revenue: (1) NLD, data and mobile growth (2) Local and LD tariff increase (June) Cost : strict control Net Debt: flat to small reduction

32. RJ-AAA-AAMMDD 31 “SAFE HARBOR” STATEMENT Investor Relations Rua Humberto de Campos, 425 / 8º andar Leblon Rio de Janeiro -RJ Phone: ( 55 21) 3131-1314/1313/1315/1316/1317 Fax: (55 21) 3131-1155 E-mail: invest@telemar.com.br Visit our website: http://www.telemar.com.br/ri 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