May, 2003

RJ-AAA-AAMMDD 1 Overview – March/2003 Integrated Telecom Service Provider million wirelines in service million wireless clients Concession Area (Region I) - Local Service and SMP –65% of Brazilian territory/94 million people –40% of country’s GDP –Over 21 million households Leadership in local services in Region I (98% market share) National and international long distance services Regional mobile services (GSM) National Data, Corporate & Value Added Services TNLP4: most liquid stock in Brazilian market TNE: among the most liquid L.A. ADR at the NYSE /2002 Free Float: 80% of total shares Level 2 ADR (NYSE: TNE): 30% of total shares Market value: US$ 4.2 billion (Apr/03)

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 = 18.9% Treasury stock = 1.6% 100.0% Treasury 79.5% Norte Leste (TMAR) 100.0%

RJ-AAA-AAMMDD 3 TNE – Capital Structure *53% of TNE common shares Capital R$ 4,644 million Tele Norte Leste Participações S.A. (TNE) Telemar Participações S.A. Free float 17.9%79.9% BNDESPar Fiago AG Telecom ASSECA Participações L.F. Tel BrasilCap Brasil Veículos Lexpart Part. 130,186 Mn 390,557 Mn 260,371 Mn Common Preferred Total Shares 1/3 2/3 Total outstanding shares (ex-treasury) 381,8 Mn Treasury Stock 2.2%

RJ-AAA-AAMMDD 4 Managing Structure Audit Committee Fiscal Committee Board of Directors Executive Committee Controlling Procurement Treasury CFO Strategy and Regulation Legal Counsel Financial Planning Asset Management Public Relations Internal Audit TMAR Investor Relations Billing Cycle Human Resource OiCEOTMAR CEO TNE

RJ-AAA-AAMMDD 5 Wireline Network – Lines Installed & in Service (million lines) Lines in service (LIS) Lines installed (LI) July 1998* Q03 *Company´s acquisition.

RJ-AAA-AAMMDD 6 Wireline Network – Broadband Accesses (in thousands) Mar/02Jun/02Sep/02Dec/02Mar/03 15% 85% 19% 81% 23% 77% 53% 58% 47% 42% Velox (ADSL) DVI (ISDN)

RJ-AAA-AAMMDD 7 Wireline Network – Long Distance Backbone Natal Recife Maceió RR AM PA MA AC RO MT MS RS PR SP MG GO TO BA PI CE PB PE Porto Alegre Florianópolis Curitiba Goiânia Brasília SE São Luís Rio de Janeiro Vitória Salvador Aracajú Terezina Fortaleza Paracatu Patrocínio ES Belém RN AL Uberlândia SC Belo Horizonte São Paulo Campinas RJ AP Montes Claros Cover over 80% of Brazilian Industrial GDP Interstate transport network 18,000 km fiber optical cable 20 integrated metropolitan rings in 18 states 350 remote satellite stations 8 Hub satellites DWDM, SDH and IP

RJ-AAA-AAMMDD 8 Nov/02Dec/02 Prepaid Post-paid Wireless Platform - Oi’s subscriber base (in thousands) Mar/03 80% 20% 78% 22% 78% 22% 80% 20% 79% 21% 78% 22% ,401 1,504 1,624 78% 22% 1, Oct/02 Sep/02 Jan/03 Feb/03

RJ-AAA-AAMMDD 9 Financial Results 1Q03 – Net Revenues (R$ Mn)

RJ-AAA-AAMMDD 10 Financial Results 1Q03 – Gross Revenue Breakdown

RJ-AAA-AAMMDD 11 Consolidated Revenues – Local Services Decrease in average lines in service and traffic Fixed to mobile tariff adjustment in February 1Q03/1Q02 1Q03/4Q02 Tariff increase in June/02 and traffic growth (5% yoy) Decrease in fixed to mobile traffic (campaigns incentivating fixed-fixed calls) Drivers + R$ 67 Mn (+2.5%) + R$ 246 Mn (+10.5%)

RJ-AAA-AAMMDD 12 Consolidated Revenues – Long Distance Services Intra-RegionaI: increase in average revenue per minute (lower promotions/ discounts) Inter-regional & International: Increase in traffic and market share Fixed-Mobile: Traffic increase (CSP 31) and tariff adjustment in February 1Q03/1Q02 1Q03/4Q02 Market share gains in all segments (new services contributed with R$ 77 million) and tariff increases Drivers + R$ 71 Mn (+11.9%) + R$ 204 Mn (+44.1%)

RJ-AAA-AAMMDD 13 Consolidated Revenues – Data Services 1Q03/1Q02 1Q03/4Q02 The Brazilian Data Market is growing by 10% a year. Telemar´s revenue increased by 17.5% yoy and 22.4% qoq, mainly due to market share gains (also helped by Pegasus´ acquisition). Pricing pressure on leased lines (mainly to other providers - EILD) Drivers + R$ 50 Mn (+22.7%) + R$ 41 Mn (+17.8%)

RJ-AAA-AAMMDD 14 Growth in services (+89%) partly compensating the decrease in handsets sales (-66%) Consolidated Revenues – Wireless Services 1Q03/4Q02 Drivers - R$ 100 Mn (-31.2%)

RJ-AAA-AAMMDD 15 Oi´s Operating & Financial Performance – 1Q03 Gross Revenue (R$ Mn) Net Additions (in Thousands) 366 Market Share/Net Additions 1Q03 * Band A+B 44% Oi 56% Wireless Market-Share Region I (Mar03) * Region I (Band B net adds estimated) % 88.4%Band A+B Oi

RJ-AAA-AAMMDD 16 Costs & Operating Expenses* - 1Q03 (R$ Mn) *Ex depreciation and amortization 1Q02 4Q02 1,351 1,966 1,743 1Q03 4Q02 Cost of services Interconnection Selling G&A / Other Cost of services Interconnection Selling G&A and Other

RJ-AAA-AAMMDD 17 (R$ Mn) Costs & Operating Expenses – Main Changes - 1Q03/4Q02

RJ-AAA-AAMMDD 18 Personnel – 1Q03 (full–time employees) Mar/03 24,206 24,511 21,090 28,736 29,987 Contax TMAR+Oi ,471

RJ-AAA-AAMMDD 19 Bad Debt Provisions – 1Q03 (% of gross revenue) 1Q022Q023Q024Q021Q03

RJ-AAA-AAMMDD 20 Consolidated EBITDA – 1Q03 (R$ Mn)

RJ-AAA-AAMMDD 21 Financial Results – 1Q03 (R$ Mn) * Net of currency swap results. Increase in interest rates (CDI) and in total debt during 1Q03

RJ-AAA-AAMMDD 22 Consolidated Income Statement – 1Q03 (R$ Mn) Reversal of Income Tax/ Interest on Capital Statement

RJ-AAA-AAMMDD 23 Consolidated CAPEX – 1Q03 (R$ Mn)

RJ-AAA-AAMMDD 24 Debt Position (Mar/03) (R$ Mn)

RJ-AAA-AAMMDD 25 Debt Profile – Currency & Cost (Mar/03) – After swap effect CurrencyInterest Rates CurrencyCost US$Libor + 5% Basket12.3% Real25.0%* Cost of Debt * Based on CDI at 26.5% p.a.

RJ-AAA-AAMMDD 26 Debt Profile – Repayment Schedule (Mar/03) Total Debt: 11,616 (R$ Mn)

RJ-AAA-AAMMDD 27 Growth Focus Wireline Services Wireless Services Data & Corporate Long Distance Integrated Strategy

RJ-AAA-AAMMDD 28 Local Service Data & Corporate Long Distance Maintain leadership in home market Advanced voice services (corporate/middle market) Value added services Increase ARPU Reduce interconnection costs Lower Platform Growth (in line with GDP) Increase in Value Added Services Wireless Services Growth Focus - Local Wireline Services

RJ-AAA-AAMMDD 29 Local Service Wireless Services Data & Corporate Long Distance Increase penetration in SME (home market) ADSL (high end residential/SOHO/small businesses) Nationwide services (corporate level) Leverage on national backbone (Telemar + Pegasus) Competitive Service Level Agreements Growth above the market Growth Focus - Data & Corporate Services

RJ-AAA-AAMMDD 30 Local Service Data & Corporate Long Distance Leadership in home market Protect existing market –Retail: loyalty/retention programs + promotions –Corporate: best quality (call completion/billing) + competitive service plans (discounts/volume) Conquer new markets (inter- regional/international/SMP Leverage on relationship & brand Leverage on efficiency (lower cost service provider) Best quality service provider Offer of New Services (Increase Market Share) Growth above the market Wireless Services Growth Focus - Long Distance Services

RJ-AAA-AAMMDD 31 GROWTH FOCUS - Wireless Services Local Service Data & Corporate Long Distance Market segmentation /Innovative Plans (MTV & Celebrities/Oi Family) Stimulate data / SMS growth Increase Focus on Corporate Market Leverage on competitive advantages –Synergies with wireline company –Regional coverage –GSM technology (speed & features) Low handset subsidies/aggressive service plans Increase national & international roaming High Growth + Synergies with Wireline Wireless Services

RJ-AAA-AAMMDD 32 Outlook 2003 Platform Growth:Wireline: stable Wireless: 1.3 million net adds Revenue Drivers: (1) DLD, Data and Mobile growth (2) Local tariff increase (June) Cost: strict control Net Debt: flat to small reduction YE03/YE02 Bad Debt : ~3.8% of gross revenues EBITDA TNE: ~ 42% - 45% CAPEX: R$ 1.8 b (55% TMAR/40% Oi/ 5% Contax)

RJ-AAA-AAMMDD 33 “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: 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