March, 2003

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: 80% of total shares Level 2 ADR (NYSE: TNE): 29% of total shares Market value: US$ 3.0 billion (Mar/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%79.5%100.0% Norte Leste (TMAR) Treasury 100.0%

RJ-AAA-AAMMDD 3 TNE – CAPITAL STRUCTURE *53% of TNE common shares Capital R$ 4,477 million Tele Norte Leste Participações S.A. (TNE) Telemar Participações S.A. Free float 17.9%79.8% BNDESPar Fiago AG Telecom ASSECA Participações L.F. Tel BrasilCap Brasil Veículos Lexpart Part. Brasil 51.4% NYSE 28.4% 127,949 m 383,846 m 255,897 m Common Preferred Total Shares 1/3 2/3 Total outstanding shares (ex-treasury) 375,065 m Treasury Stock 2.3%

RJ-AAA-AAMMDD 4 CORPORATE STRUCTURE General Shareholders’ Meeting Eleven members (three actually on leave) Board Committees [Finance; Procurement & CAPEX; Compensation / Stock Option Plan] Board of Directors Five 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 Two members: TMAR´s and Oi’s CEO Executive Committee PricewaterhouseCoopers Independent Accountants

RJ-AAA-AAMMDD 5 CORPORATE GOVERNANCE AT TNE Shareholders` Rights Conduct/Ethics Code Fair Disclosure Sarbanes-Oxley

RJ-AAA-AAMMDD 6 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 98.5% of total preferred shares  Class B Shares (TMAR 6): 10% of the Company´s Capital (allocated to this class) 1.5% of total preferred shares

RJ-AAA-AAMMDD 7 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 Internal Audit Oi CEOTMAR CEO TMAR

RJ-AAA-AAMMDD 8 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

RJ-AAA-AAMMDD 9 ANATEL TARGETS: REAPING THE BENEFITS Oi’s operational launching National long distance service International long distance service Nationwide data service Revenues of R$ 557 million in six months

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

RJ-AAA-AAMMDD 11 NETWORK: BACKBONE TELEMAR + PEGASUS 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 12 Jul/02Aug/02Sep/02Oct/02Dec/02Nov/02 79% 21% 81% 19% 80% 20% 78% 22% 78% 22% 80% 20% ,401 Prepaid Post-paid WIRELESS PLATFORM - Oi’s SUBSCRIBER BASE (in thousands)

RJ-AAA-AAMMDD 13 CONSOLIDATED REVENUES Gross revenue Net revenue CAGR = 23.4% + 132% +18% YoY R$ Mn

RJ-AAA-AAMMDD 14 CONSOLIDATED REVENUES – MAIN DRIVERS

RJ-AAA-AAMMDD 15 *Ex depreciation and amortization CONSOLIDATED OPERATING EXPENSES* R$ Mn *Ex depreciation and amortization 1998 Cost of services Interconnection Selling expenses G&A and other oper. expenses ,470 3,488 4,095 6,5456, , ,

RJ-AAA-AAMMDD 16 CONSOLIDATED OPERATING EXPENSES - MAIN DRIVERS * TNE Consolidated - accounts for eliminations of intercompany transactions.

RJ-AAA-AAMMDD 17 HEADCOUNT - CONSOLIDATED

RJ-AAA-AAMMDD 18 BAD DEBT PROVISIONS % of gross revenue One time adjustments* * Equivalent to 1.4% of gross revenue

RJ-AAA-AAMMDD 19 CONSOLIDATED EBITDA R$ Mn Net revenue EBITDA EBITDA margin (%)

RJ-AAA-AAMMDD 20 CONSOLIDATED INCOME STATEMENT R$ Mn Increase of CAPEX in 2001 Debt increase yoy and impact of F/X rate

RJ-AAA-AAMMDD 21 CONSOLIDATED BALANCE SHEET R$ Mn

RJ-AAA-AAMMDD 22 FINANCIAL RESULTS R$ Mn Debt growth & Brazilian Currency devaluation * Gross of R$ 894 million of interest on currency swaps. *

RJ-AAA-AAMMDD 23 CONSOLIDATED CAPEX - TNE R$ Mn 17.1% 99.6% 34.5% 36.1% 48.5% Wireline Wireless CAPEX / Net Revenue 10,060 2,031 2,000

RJ-AAA-AAMMDD 24 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

RJ-AAA-AAMMDD 25 CONSOLIDATED DEBT – CURRENCY & COST (DEC/02) CurrencyInterest Index CurrencyCost US$Libor + 5% Basket12.3% Real23.2%* Cost of Debt * With a CDI of 25% p.a.

RJ-AAA-AAMMDD 26 CONSOLIDATED DEBT – REPAYMENT SCHEDULE (DEC/02) onwards Total debt: R$ 10,774 Mn st half 2nd half 5% 11%

RJ-AAA-AAMMDD 27 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

RJ-AAA-AAMMDD 28 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

RJ-AAA-AAMMDD 29 REVENUE GROWTH STRATEGY Local Service Mobility Data & Corporate Long Distance Integrated Strategy

RJ-AAA-AAMMDD 30 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

RJ-AAA-AAMMDD 31 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

RJ-AAA-AAMMDD 32 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)

RJ-AAA-AAMMDD 33 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

RJ-AAA-AAMMDD 34 OUTLOOK REVIEW 2002 OutlookReached Revenue DriversPlant Growth + 300/400K325K New ServicesDLD+ILD+Mobile (Oi)Launched (Jun-Jul) New MarketsCorporate (Region 2 and 3)Pegasus Acquisition Improve ARPU2001: R$ : R$ Cost Drivers Operating Effic.45% EBITDA Margin 2002: 45% EBITDA Margin Headcount -40%-37% Bad Debt Control5.0% 3.8% CAPEX Reduction R$ 2.5 billionR$ 2 billion Net DebtR$ 10 – 10.4 billionR$ 9.2 billion PCS launching500K subs 1,400K subs

RJ-AAA-AAMMDD 35 OUTLOOK 2003 Platform: Wireline: in line with GDP Wireless: +/- 1 million adds Revenue: (1) DLD, data and mobile growth (2) Local and LD tariff increase (June) Cost : strict control Net Debt: flat to small reduction

RJ-AAA-AAMMDD 36 “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