ABAMEC* Presentation Rio de Janeiro and São Paulo November 2002 * Brazilian Analysts Association

1 Part I Corporate Structure

2 CORPORATE STRUCTURE TELE NORTE LESTE PARTICIPAÇÕES S.A 79.0% 18.7% CONTAX TELEMAR PARTICIPAÇÕES S.A.* TELEMAR PARTICIPAÇÕES S.A.* TELEMAR Norte Leste TELEMAR Norte Leste Treasury 79.5% FREE FLOAT 19.0% Treasury *53% of TNE Voting Shares ** Wholly owned subsidiary FREE FLOAT 2.3% 1.6% **

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4 Part II TELEMAR NORTE LESTE

5 Main Achievements Processes Services Market Approach Optimization of Resources; Process Standardization; Management Centralization; Merge of wireline companies; Restructuring 16  1 16 Companies 16 IT Systems 15 Network Platforms 23 Network Management Centers 116 Call Centers Local Voice and regional LD; Regional Data Communic. Geographic Local & Advanced Voice Domestic & International LD Nationwide Data Transmission Wireless Call Center Network Management / Internet Management/Processes Services Market Vision Customer Segmentation All Unified International R III RIRI R II

6 PLATFORM GROWTH – TMAR Million Lines in Service +106% Jul/ Sep_01Sep_02

7 +97% * 1998, 1999 and 2000 refer to the Consolidated statement 6,946 5,158 8,433 6,222 10,851 8,127 13,687 10,1339,997 7,391 11,573 8, *1999*2000*20019M019M02 Gross RevenueNet Revenue 11,465 8,480 REVENUE GROWTH - TMAR R$ Millions

% 6 % - 20 % *1999*2000*20019M02** *1999*2000*20019M02** *1999*2000*20019M02** * 1998, 1999 and 2000 refer to the Consolidated statement ** 9 months Annualized EBITDA per Average Line in Service - R$ PRODUCTIVITY RATIOS - TMAR Net Revenue per Average Line in Service - R$ Cash Costs per Average Line in Service - R$

% , *1999*2000*20019M019M % , *1999*2000*20019M02** *1999*2000*20019M02 ** % * 1998, 1999 and 2000 refer to the Consolidated statement ** 9 months Annualized EBITDA / Employee (R$ Thousands) EMPLOYEE PRODUCTIVITY - TMAR Lines in Service / Employee (R$ Thousands) Net Revenue / Employee (R$ Thousands)

10 CONSOLIDATED CAPEX - TNL R$ Millions 5 years R$ 19.0 bn or US$ 9.6 bn 2,500 2,244 2,804 7,888 2, M02 WirelineWireless 10,060 1,334

11 MANAGEMENT MODEL – MAIN PILLARS Financial Management Suppliers Management Personnel Management Detailed Capex planning, cost and revenue matrix plan. Strong cost control. Strong budget control, focusing on return on investment/EVA. Meritocracy is key. Talent management and retention of key personnel. Culture based on corporate values and results oriented. Formation of leaders and winning teams. Quality management. Strategic use of internal communication. Redesign of supply contracts, including quality and performance targets. Reduction of the supplier base and centralized management. Development of strategic suppliers. Outsoursing of non-core activities (call center, etc). Consolidation of network technologies. Corporate Management Specific targets broken-down to all management levels. Monthly evaluation. Simple structure with few hierarchic levels. Redesign and standardization of key processes. Variable remuneration based on achievement of targets. Thematic decision making Committees.

12 MANAGEMENT MODEL – PLANNING PROCESS STRATEGIC PLANNING FOLLOW UP BUSINESS PLAN Negotiated / Discussed / Validated; Board + Top Management; Annually. Negotiated / Discussed / Validated; Board / Management Annually. Matrix follow up per Business Unit / Region; Thematic Committees; Monthly. BALANCE OF RESULTS Incentives / Remuneration based on results achieved; Annually. Guidelines of the Annual Plan Contract of Company’s targets Evaluation and adjustments to Annual Plan Meritocracy

13 Part III

Achievements and Challenges

15 Achievements Better than expected launching of a huge GSM startup; Launching of a new brand, with a strong appeal to life style, with a different proposition to the market; cellular treated as a personal consumer product, instead of a telecommunication product; 500,000 clients in three months attracted by innovative marketing campaigns; First GSM company in Brazil, with advantages in relation to incumbents such as worldwide handset scale, higher flexibility and security to customer, more sophisticated products and services; Focus on innovative products and services (voice and data).

16 PRE-LAUNCHING ROLLOUT Launching at the end of June, 2002 Coverage 200 cities covered; 30 million people GPRS coverage in six main capitals Record of site installation per month CAPEX optimization International Roaming (more than 50 countries) Coverage focused on profitable areas Distribution Channels 1,600 points of sales in Region I (breaking exclusivity of A & B Bands distribution channel) Diversified channel with high presence: ­Retail, specialized agents, stores, telesales Corporate sales effort combined with Telemar. Consumer and corporate focus through high points of sales presence and diversity of channels Optimization of Resources Tight headcount structure: ~660 employees Infrastructure Sharing Outsourcing (including “call centers”) Synergies with Telemar. Focus on profitable growth, minimizing OPEX and optimizing CAPEX

17 BRANDING EVOLUTION: New Entrants with a new Focus Functionality Emotion / Life Style A and B Band Operators New entrants Strong connection with technology (“cell”, “tel”) Based on life style

18 Oi BRANDING Instead of emphasizing Tel and Cell focused on goods and emotions

19 POST LAUNCHING RESULTS Innovative Campaign: 31 Years Diferentiated Service Plans Diversified Handset Offer Initial Targets 500,000 clients in 12 months ARPU of R$ 26 MIX Pre / Post: 90% / 10% Market share and gross adds below market fair share First Achievements 500,000 clients in three months ARPU of R$ 36 MIX Pre / Post: 80% / 20% Market share and gross adds above market fair share

20 GSM TECHNOLOGY ADVANTAGES GSM technology is the most used in the world. European operators all use GSM 1800 Handset diversity Competitive Prices – up to 20% lower than TDMA / CDMA (low end) Large handset variety State of the art handsets with camera devices, GPRS, etc. The SIM card contains customer’s basic data More flexibility and security to customers Security -Clone Proof -Payments On-Line (Banking Certified) Higher flexibility -Easier handset substitution -Download and storage of small data aplications -Higher storage capacity Advanced Data ApplicationsHigher speed “Always on” Better Graphic resources Higher variety of applications

21 Oi MTV Product Services Plans Handsets Packs / Bundles Devices Increased customer base Stimulated Voice Usage Stronger SMS usage Brand Name Consolidation Very positive initial results

22 VOICE: Oi XUXA Product Concept Target: children and family Strategy: offer an exclusive product, that only Oi can develop Features: Educational Products & Games Focus: Continued Service

23 DATA GPRS: COVERAGE AND SPEED GPRS coverage in six capitals Rio de Janeiro, Vitória, Belo Horizonte, Salvador, Recife and Fortaleza Fixed Line 56Kbps Modem = 9.5 min 14.5 Kbps S45 – IrDA GPRS = 5.8 min 24.2 Kbps T68 – IrDA GPRS = 4.6 min 30.4 Kbps PCMCIA Card GPRS – Globe Trotter = 3.3 min 41.6 Kbps LAN Oi = 1.3 min Kbps Real Speed Download time for 1 Mb GPRS Coverage - Rio de Janeiro - Launch

24 “Oi is cellular and credit card clone proof” “Credit Card at the beach, street markets, in the cab...” WIRELESS DATA APPLICATIONS

25 TELEMETRIC & INDUSTRIAL APPLICATIONS WAP “Wide Area Protocol” applications GSM/GPRS Wireless internet Solutions

26 PARTNERSHIPS OPERATORS SOLUTION PROVIDERS CONTENT PROVIDERS Non Tech companies and Internet Big Players. Ex: Banks, Portals TARGET: New channels with their clients Increase content offer EQUIPMENT SUPPLIERS PDA and handsets suppliers. Ex: Siemens, Nokia, Ericsson.. TARGET: Create own interface with the client. Create new demand for technology and handset replacement ASPs, System Integrators, System Developers Ex: Promon IP, Oracle, Microsoft TARGET: Potential revenues from new services and products Establish technological standards and increase application sales. Network Access Providers TARGET: Increase market share and ARPUs

27 Actions Strategic Guidance Capture additional clients and market share Focus on profitable clients Growth of corporate segments and SMS revenue Profitable Growth Focus Optimized structure, outsourcing non-core services Reduction of SAC Continuous Cost Control Offer integrated corporate solutions Shared services (under analysis) Capturing synergies with TMAR Focused expansion based on value addition Reinforce ongoing infrastructure sharing initiatives (sharing, instead of building, whenever possible) New projects based on solid business plans Capex control Stimulate the use of SMS - interoperability Portfolio of corporate applications Data Focus Oi’s 2003 PERSPECTIVES

EASY AS IT IS!

29 Part IV FINANCIAL RESULTS

30 3Q013Q02Va. %9M019M02Va. % 3,570 4,206 18%9,976 11,739 18% 2,626 3,083 17%7,370 8,648 17% (2,188) (1,798) -18%(4,811) (4,618) -4% 437 1, %2,559 4,030 57% (787) (975) 24%(2,221) (2,882) 30% (354) (859) 143%(572) (1,552) 171% (429) (382) -11%(137) (315) 130% 17%42%35%47% Gross Revenue Net Revenue Operating Costs and Expenses EBITDA Depreciation Financial Results Net Result EBITDA Margin CONSOLIDATED INCOME STATEMENT – TNE R$ Millions

31 INCOME STATEMENT – TMAR R$ Millions 3Q013Q02Va. %9M019M02Va. % Gross Revenue3,577 4,042 13%9,997 11,574 16% Net Revenue2,633 2,951 12%7,392 8,516 15% Operating Costs and Expenses(2,134) (1,515) -29%(4,744) (4,304) -9% EBITDA499 1, %2,648 4,213 59% Depreciation(750) (872) 16%(2,118) (2,673) 26% Financial Results(193) (571) 196%(278) (1,218) 338% Net Result(342) (21) -94% % EBITDA Margin19%49%36%49%

32 CONSOLIDATED REVENUE & EBITDA - TNE R$ Millions 7,370 8,648 4,030 2,559 47% 35% 9M019M02 Net RevenueEBITDAEBITDA Margin

33 CONSOLIDATED CAPEX - TNE R$ Millions 2,000 6,222 8,122 8,648 10, ,058 2,804 2,244 2,500 7,370 5,158 10, M019M022002E CapexNet Revenue CAPEX / Net Revenue (%) 96% 17% 48% 36% 35% 100% 15% M019M022002E

34 CONSOLIDATED NET DEBT - TNE R$ Millions 2,091 3,997 7,036 7,702 8,317 9,1289,006 Mar_01Jun_01Sep_01Dec_01Mar_02Jun_02Sep_02

35 CONSOLIDATED DEBT – CURRENCY AND COST (SEP/02) Currency 46% 11% 10% 33% Domestic US$ Yen (Swap to US$) Currency Basket 52% 15% 20% 13% CDI TJLP Floating Rate (US$) Interest CurrencyCost (% p.a.) US$Libor + 5 Yen1.7 Basket12.3 Real16.0 Cost of Debt Fixed Rate (US$)

36 CONSOLIDATED DEBT - AMORTIZATION SCHEDULE (SEP/02) 4% 11% 18% 21% 29% 18% onwards

37 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. “SAFE HARBOR” STATEMENT Investor Relations Rua Humberto de Campos, 425 / 8º andar Leblon Rio de Janeiro -RJ Phone: ( 55 21) /1313/1315/1316/1317 Fax: (55 21) Visit our website: