1. Conference Call 3Q04 Results
October 29, 2004

2. 1. Highlights of the Quarter 2. 3Q04 Review
AGENDA
1. Highlights of the Quarter
2. 3Q04 Review
3. Debt Position / Free Cash Flow
4. Q&A

3. TNL – Customer Base (in thousands)
Over 3.3 million
new customers
in one year
21,395
20,637
18,070

4. GROWTH OF MOBILE MARKET
(million subscribers)
Brazil
Region I
58.2
54.0
42.3%
YoY
26.0
38.3%
YoY
49.1
46.4
24.2
40.9
22.2
21.2
18.8
Region I
3Q03
4Q03
1Q04
2Q04
3Q04
3Q03
4Q03
1Q04
2Q04
3Q04 Oi
Oi - Net Additions (thousand)
Market Share
Market Share of Net Adds
101%
YoY
3Q03
4Q03
1Q04
2Q04
3Q04
3Q03
4Q03
1Q04
2Q04
3Q04

5. KEY REVENUE DRIVERS - 3Q04/3Q03
Gross Revenue – R$ Million
10% growth
YoY
3Q03
Local*
LD*
Mobile
Data
Other
3Q04
+3%
YoY % growth
+18%
+62%
+33%
+1%
*Excludes F- M revenues (-1% yoy).

6. EBITDA - MAIN VARIABLES FOR THE QUARTER (R$ Million)
4,084
+286
3,798
Net Revenue
Drivers
+170
(+) Tariff Adjustment
(+) Handset Sales & Mobile Services
(+) Data Services
Revenue
EBITDA
+116
(+) Handset Costs
(+) Interconnection Costs
(-) Bad Debt Provisions
Cash Costs & Expenses
Costs

7. CASH FLOW & NET DEBT (R$ Million)
FREE CASH FLOW
( Op. Cash Flow – CAPEX)
NET DEBT
+25%
- R$ 1,7 billion
YoY

8. Debt Repayment Schedule
(R$ Million)
Foreign Currency:
70.0%
(95% Hedged)
Total Debt = ,863
Net Debt = ,000
Net Debt/EBITDA = x
% of
Total
4.2
24.1
29.7
13.1
7.4
7.3
14.2

9. 5. Q&A

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