January/03 1 TELE NORTE LESTE PARTICIPAÇÕES S.A.

January/03 2  One of the largest Integrated Telecom Companies in Brazil 15.1 million fixed lines in service (Sep/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)  Domestic and International Long Distance Services  Regional Mobile Services (GSM)  Data, Corporate & Value Added Services  TNLP4: Most Liquid Stock in Brazilian Market (BOVESPA)  Free Float: 79% of Total Shares  Level 2 ADR (NYSE:TNE): 28% of Total Shares  Market Value: US$ 2.8 billion (Dec/02) Overview – December / 2002

January/03 3 TELE NORTE LESTE PARTICIPAÇÕES S.A (TNE) 79.0% 18.7% CONTAX TELEMAR PARTICIPAÇÕES S.A. * TELEMAR PARTICIPAÇÕES S.A. * TELEMAR Norte Leste (TMAR) Treasury Stock Free Float 18.9% Treasury Stock FREE FLOAT Pegasus Telemar – Shareholders´ Structure * Controlling Shareholder (53% of voting shares) 2.3% 1.6%

January/03 4 TNE - Capital Structure Tele Norte Leste Participações S.A. (TNE) Free Float 79.0% 18.7% TELEMAR PARTICIPAÇÕES S.A. Capital R$ 4,477 Million Total Shares: 383,846 million Preferred: 255,897 million Common: 127,949 million Treasury Stock = 2.3% TOTAL CAPITAL* BNDESPar Fiago AG Telecom ASSECA Participações Lexpart Part. L. F. Tel BrasilCap BrasilVeículos 25.0% 19.9% 11.3% 5.0% * 53% of TNE common shares

January/03 5 General Shareholders´ Meeting Board of Directors 11 board members 10 shareholders representatives plus the CEO Board Committees Fiscal Committee 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. Executive Committee 3 members: TNE, TMAR and Oi´s CEO’s Independent Accountants PricewaterhouseCoopers Corporate Structure

January/03 6 Managing Structure 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 Billing Management Internal Audit Oi CEOTMAR CEO TNE CEO

January/03 7 Main Achievements - Optimization of Resources; - Process Standardization; - Management Centralization; - Merge of wireline companies; 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 Wireless Call Center Network Management / Internet Management/Processes Services Market Vision Customer Segmentation All Unified International RIII RI RII 2002

January/03 8 Anatel Targets: Reaping the Benefits Oi’s Operational Launching Domestic Long Distance Service International Long Distance Service Nationwide Data Services (Pegasus´Acquisition)

January/03 9 Universal Service Targets Wireline Platform Growth and Utilization Rate - TMAR *Acquisition of the Company CAGR (LIS) = 23.8% 106% Utilization Rate (%) 89% 92% 86% 82% 93% 89% 15.1 Wireless Wireline

January/03 10 Revenue Growth -TNE (R$ Mn) CAGR = 25.1% 6,946 5,158 8,433 6,222 10,851 8,122 13,660 10,103 11,739 8, M02 Gross Revenue Net Revenue +17% yoy 96%

January/03 11 Operating Expenses - TNE* (R$ Mn) * Ex depreciation and amortization 3,4703,488 4,095 6,663 4,811 4, M01 9M02 Cost of Services Interconnection Selling Expenses G&A and Other Operating Expenses

January/03 12 Bad Debt Provisions – TNE (% of Gross Revenue)

January/03 13 Net Revenue EBITDA EBITDA Growth - TNE (R$ Mn) 5,158 8,127 6,222 8,648 10,103 4,030 3,440 4,032 2,735 1,689 34% 47% 50% 44% 33% M02 EBITDA Margin (%)

January/03 14 Recent Financial Results (R$ Mn)

January/03 15 Consolidated Capex - TNE (R$ Mn) 2,500 2,244 2,804 7,888 2, M02 WirelineWireless 10,060 1,334 CAPEX / Net Revenue

January/03 16 Net Debt – Quarterly Evolution - TNE (R$ Mn)

January/03 17 Debt Profile – Currency & Cost (Sep/02) CurrencyInterest Index CurrencyCost (% p.a.) US$Libor + 5 Yen1.7 Basket12.3 Real16.0 Cost of Debt 46% 11% 10% 33% Local US$ Yen (Swap to US$) CY Basquet 52% 15% 20% 13% CDI TJLP Floating Rate (Foreign Currency) Fixed Rate (Foreign Currency)

January/03 18 Debt Profile – Repayment Schedule (Sep/02) 4% 11% 18% 21% 29% 18% onwards Total Debt: R$ 10,389 Mn

January/03 19 Dividends and Dividend Yield – TNE (1998/2002) *9M2002 Annualized % 3.6% 4.3%* 3.0% 3.1% E Dividends (R$ Mn)Dividend Yield (%)

January/03 20 Oi´s Project: Pre-Launching Rollout Coverage 200 cities covered; 30 million people GPRS coverage in 6 main capitals Record of site installation per month CAPEX optimization (co-sitting) International Roaming Main Suppliers: Nokia, Siemens, Alcatel, Ericsson Coverage focused on profitable areas Distribution 1,600 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. Consumer and corporate focus through high capillarity and diversity of channels Resource Optimization Tight headcount structure: ~660 employees Infrastructure Sharing Outsourcing (including “call centers”) Synergies with Telemar Strong brand Focus on profitable growth, minimizing OPEX and CAPEX

January/03 21 Post-Launching Results Innovative Campaign: 31 Years Differentiated Service Plans Diversified Handsets Offer. Initial Targets (July/2002) 500,000 clients in 12 months ARPU of R$ 26 MIX Pre / Post: 90% / 10% Market share and gross adds bellow fair market share First Achievements 1,400,000 clients in just six months ARPU over R$ 30 (first 6 months) MIX Pre / Post: 80% / 20% (6 months) Market share and gross adds well above fair market share

January/03 22 Oi´s Subscriber Base – Monthly Evolution (in thousands) Jul_02Aug_02Sep_02Oct_02Nov_02Dec_02 Pre paidPost-paid 79% 21% 81% 80% 78% 80% 19% 20% 22% 20% ,400

January/03 23 OUTLOOK 2002 (Review)  Lines in Service: +300/400 K  New Revenues: DLD/ILD and Mobile Services (Oi)  Capex: Around R$ 2 Bn  Bad Debt: Up to 5% of Gross Revenue  Net Debt: Around R$ 9 Bn (2002 YE)  Oi: 1 Mn subscribers (2002 YE)

January/03 24 Revenue Growth Strategy- TNE Local Data & Corporate Long Distance Mobility Profitability Competition

January/03 25 Maintain Leadership in Home Market Advanced Voice Services (Corporate / Middle Market) Best Carrier´s Carrier – Network leverage (Home Market) Increase ARPU Value Added Services Increase ADSL sales Reduce Interconnection Costs (TNE level) Local Service Revenue Growth Strategy- TNE

January/03 26 Leadership in Home Market Conquer new markets (Inter-regional / International / SMP – Dial Code) Protect existing market: Retail: Loyalty / Retention Programs + Promotions Corporate: Best Quality (Call Completion / Billing) + Aggressive Service Plans Long Distance Service Revenue Growth Strategy- TNE

January/03 27 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 Data & Corporate Services Revenue Growth Strategy- TNE

January/03 28 Mobile Services Deepen Market Segmentation Stimulate DATA + SMS Focus on Corporate Leverage on Competitive Advantages: Synergies with wireline Regional coverage GSM technology (speed & features) Low Handset Subsidies / Aggressive Service Plans Increase National & International Roaming Revenue Growth Strategy- TNE

January/03 29 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: