1. TNE 1 TELE NORTE LESTE PARTICIPAÇÕES S.A. Morgan Stanley Dean Witter Global Communications Conference March, 2001 The information included herein has already been filed with SEC and CVM (Brazil) and is also available at www.telemar.com.br

2. TNE 2  Largest Brazilian Company*  Second Largest Telco in Latin America  Heaviest Weight on IBOVESPA (Jan/01)  First Brazilian Company ADR Volume (Jan/01)  Shareholders’ Equity: US$ 5.1 billion  Market Value: US$ 9.2 billion (Jan/01)  Free Float: 82% of Total Shares Overview * Privately owned

3. TNE 3  Covers 65% of Brazilian Territory  Reaches 93 million people  Over 20 million households  12.2 million Fixed Lines in Service (Feb/01)  13% Penetration Rate (Brazil: 21%)  560 Lines in Service/Employee Overview

4. TNE 4 Overview: Shareholders’ Structure Tele Norte Leste Participações S.A. Free Float CEARÁ T - 78% PIAUÍ T - 73% MARANHÃO T - 64% AMAPÁ T - 81% AMAZONAS T - 75% RORAIMA T - 60% PARÁ T - 55% ALAGOAS T - 70% PERNAMBUCO T - 76% PARAÍBA T - 64% RIO GRANDE DO NORTE T - 69% RIO DE JANEIRO T - 86% ESPÍRITO SANTO T - 83% MINAS GERAIS T - 79% BAHIA T - 82% SERGIPE T - 62% Preferred Shares -----99.5% Brazil ------ 52% ADR ------- 48% Common Shares ------- 46.0% 81.7%17.3% Common Shares = 51.8% TELEMAR PARTICIPAÇÕES S.A. Total Shares: 373,577 million Preferred: 249,051 million Common: 124,526 million Shares in Treasury = 1.0% T= TNE´s stake in subsidiary. Subsidiaries have a free float average of 20% Listed companies TOTAL CAPITAL BNDESPar Fiago AG Telecom ASSECA Participações Lexpart Part. L. F. Tel BrasilCap BrasilVeículos 25.0% 19.9% 11.3% 5.0%

5. TNE 5 Tele Norte Leste Participações S.A. Free Float 81.7% Of total 17.3% of total Voting Shares = 51.8% TELEMAR PARTICIPAÇÕES S.A. T= TNE´s stake in subsidiary. Subsidiaries have a free float average of 20% Listed companies CEARÁ T - 78% PIAUÍ T - 73% MARANHÃO T - 64% AMAPÁ T - 81% AMAZONAS T - 75% RORAIMA T - 60% PARÁ T - 55% ALAGOAS T - 70% PERNAMBUCO T - 76% PARAÍBA T - 64% RIO GRANDE DO NORTE T - 69% RIO DE JANEIRO T - 86% ESPÍRITO SANTO T - 83% MINAS GERAIS T - 79% BAHIA T - 82% SERGIPE T - 62% WIRELINE SUBSIDIARIES HiCorp OutsourcingTNL PCSContaxTNext Shares in Treasury = 1.0% TNL.Acesso Overview: Shareholders’ Structure

6. TNE 6 Recent Developments: Highlights Main Drivers (Revenues) – Dec/00  Line growth: 2.1 million in 2000  Fixed-to-Mobile traffic  Tariff increase – July/00 14% Local Service/Interconnection 11.9% DLD 9.5% Fixed-tp-Mobile (VC1) – Feb/01 Revenue Growth: 31% (00/99) EBITDA Margin: 49.6% (12M00) +21.7% over 65%

7. TNE 7 Recent Developments: Highlights Main Drivers (Costs)  Cost Savings (R$ 113 million YoY/Ex-interconnection) Integration (Data Processing, Network Management and Call Centers) Shared Services Center (Back Office Functions: SAP and PeopleSoft)  Improving Efficiencies (network upgrade, systems and processes) Revenue Growth: 31% (00/99) EBITDA Margin: 49.6% (12M00)

8. TNE 8 (million)(%) Recent Developments: Plant & Digitalization Growth UTI % 92.992.292.192.3 88.0

9. TNE 9 CAGR 25.5% Recent Developments: Net Revenue & ARPU R$5.2 B R$6.2 B R$8.1 B ARPU (R$) 98: 60.10 99: 62.50 00: 64.20 ?

10. TNE 10 45% 20% 12% 11% 12% 44% 23% 12% 9% 12% 4Q994Q00 Recent Developments: Main Services Data 5% DLD 67% 65% Network Use Fixed to Mobile Local Gross Revenue R$2,288 mm R$2,996 mm Other

11. TNE 11 Recent Developments: EBITDA Reduced by R$135 MM

12. TNE 12 785.9 ST LT 2,044.8 NET DEBT 689.2 CASH 2,141.5 Total Debt: 2,830.7 LT DEBT Debt Structure - December 2000 (R$ million) DEBT PROFILE R$1,299 million foreign currency, cost: LIBOR + [1.1% - 6.6%] p.a., 86% is hedged R$1,531 million in Reais, cost: SELIC+6.48% p.a. and TJLP + [3.85% - 6.48%] p.a.

13. TNE 13 World Class - Global Operator Class A - Mobility Class B - National Coverage 2000200220012003 Class C - National Corporate Excellence Class D - Regional Excellence Steps to Maximize Value Telemar shall increase its value as the company incorporates broader strategies.

14. TNE 14 Main Targets  Data & Corporate Services  Nationwide Coverage  Mobility Efficiency and Quality of Services

15. TNE 15 MAIN PRIORITY Fulfill all 2003 Universalization Targets Nationwide Coverage

16. TNE 16 Lines Installed (million) Service available to communities larger than (inhabitants) Covered Localities Maximum waiting time for line installation Pay Phones (thousand) 2000 11.9 N.A. 40% N.A. 402 2001 13.5 1,000 60% 4 weeks 483 2003 N.A. 600 100% 2 weeks 7.5/1000 Pop Universalization Targets (Summary)

17. TNE 17 Nationwide Coverage DECEMBER 2000 TNE had 12.8 million Lines Installed DECEMBER 2001 TNE will have 18.0 million Lines Installed* * Including Public Phones and WLL 2001 CAPEX :R$ 8.4 Billion + 5.2 MM (PCS license included)

18. TNE 18 Nationwide Coverage Mission TO BECOME A NATIONAL OPERATOR FROM 2002 ON DLD Data Services Challenge Fulfill and anticipate 2003 Goals established by Anatel

19. TNE 19 Nationwide Coverage DLD Traffic Distribution – 2000 E 2%3% 28% 20% 25% 5% 9% 5% 3% Brazil: 40.5 billion minutes Region I Originates 35% Receives 40% Region III Originates 39% Receives 33% Region II Originates 26% Receives 27% Source: Telemar and Mckinsey Co. estimates

20. TNE 20 Nationwide Coverage Brazilian Market Trends (DLD and ILD) E 94 41 Region I Region II Region III Region I Region II Region III Volume billion minutes/year Revenue R$ billion/year 8.0 11.5 CAGR 18% CAGR 7.5% Source: Telemar and Mckinsey Co. estimates

21. TNE 21 Nationwide Coverage Telemar LD Market Share – 2005 E National International Player A Telemar Other Telemar Other 94410.711.56 Billion minutes Source: Telemar and Mckinsey Co. estimates

22. TNE 22 Data Services Mission TO BECOME THE LEADER IN NATIONAL DATA MARKET BY 2005

23. TNE 23 Data Services: Market Share 1,9737,866US$ million CAGR: 31.9% 20002005 16.1% 21% Refers to 3 basic steps of value chain (Traditional and IP Transport and Advanced Services)

24. TNE 24 Data Services: Value Chain B2B commerce through portals and related infrastructure Complex applications with Customization and integration Co-location and hosting services Application and software hosting Value added services VoIP, security, management and other IP Connectivity Dial-up and broadband connection Traditional data communication services Access to IP backbone DescriptionNew Businesses E-market Place ASP Hosting Advanced Services IP Transport Traditional Transport

25. TNE 25 Mobility

26. TNE 26 Introduction Main Messages Quick Decisions Opportunities Competitive Advantages Operating synergies Commercial Synergies and fixed-to-mobile complement Opportunity to buy license at low price Coverage Need for capillarity Network quality linked to number of cell sites R$ 2 billion CAPEX in 3 years, vendor financing Market growing quickly High Value Consumers New applications due to rapid technological development – GPRS Aggressive competitors already established Aggressive Targets: Subscribers Revenue Largest roll-out in the world Cellular telephony operations represent an excellent opportunity for Telemar, and the company is prepared for the challenges involved.

27. TNE 27 The Cellular Market Opportunity 2.5G/GPRS Advantages and Benefits for the Client  Larger data transmission capacity 14 - 40 kbps initially: according to the network and equipment transmission, vs. 9.6 GSM  No need to dial-up (packet switching)  Better network utilization, leading to smaller transmission costs than the previous system (circuit-switched).  Open to IP and Internet  Faster access to data  Enables the visualization of complex information (charts, tables, figures, etc.)  Billing connected to effective information transmission  Possibility of permanent connection GPRS 2.5G Technology AdvantagesBenefits for the client Telemar will be able to offer more advanced data transmission than its competitors since the first day of operations, on its way to 3G.

28. TNE 28 US$ / POP Note: Total price of 2G license Source: Merrill Lynch November 2000, Anatel, DiamondCluster. Telemar’s Competitive Advantages Comparing License Prices Telemar: US$ 6/inhabitant Telemar bought the D Band license at a low cost when compared to other prices paid.

29. TNE 29 Operating Synergies Telemar’s Competitive Advantages Synergies between Fixed and Cellular Operations Network structure: –Some WLL sites can be shared with PCS operations –Maintenance costs can be shared between both operations Customer care and billing can be shared with Telemar’s fixed operations Backbone Commercial Synergies Sales structure of Telemar Fixed –Own stores –Direct sales force Brand recognition –Reduced efforts required to insert a new brand Customer base –12 million Telemar customers (data base) National “31 code” Telemar shall take advantage of its significant synergies to leverage its position in the Brazilian telecommunications market.

30. TNE 30 “Safe Harbor” Statement 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.

31. TNE 31 Investor Relations Rua Lauro Müller, 116 / 22º andar - Botafogo Rio de Janeiro -RJ Phone: ( 55 21) 279-3220/ 279-3221 Fax: (55 21) 279-3229 E-mail: invest@telemar.com.br Visit our website: http://www.telemar.com.br