1. August/03 TNE - Conference Call – 2Q03 0 Conference Call 2Q03

2. August/03 TNE - Conference Call – 2Q03 1 Second Quarter Results Debt Position Outlook Q&A Session Agenda

3. August/03 TNE - Conference Call – 2Q03 2 Platform Growth (Million Lines, End of Period) 14.9 16.5 16.7 17.1 15.6 Wireless Wireline

4. August/03 TNE - Conference Call – 2Q03 3 Revenue Growth (Gross Revenues – R$m) TNE 3,774 4,570 4,453 1Q032Q032Q02 Wireless Service 292 219 1Q032Q03

5. August/03 TNE - Conference Call – 2Q03 4 Gross Revenue Growth - Fixed Line Services -1% 5% 1% 6% 7% -4% -1% Local (ex-VC1)VC1Long Distance (ex-VC2/3) VC2/3Data Network Usage Other Average 1% QoQ 11%8%49%41%30%-20%16% YoY Average +13%

6. August/03 TNE - Conference Call – 2Q03 5 Wireless Operating & Financial Performance Gross Revenue (R$ Million) Net Additions (in Thousands) Net Additions 2Q03 * 54% Oi 46% Market Share - June/03 * Source: market estimates 12.5% 87.5% 900321 513 Oi Other Operators 314391 366

7. August/03 TNE - Conference Call – 2Q03 6 Costs & Operating Expenses* R$m *Ex depreciation & amortization 2Q021Q03 2Q03 Cost of services Interconnection Selling G&A / Other Cost of services Interconnection Selling G&A/ Other

8. August/03 TNE - Conference Call – 2Q03 7 Bad Debt Provisions % Gross Revenue 2Q03 2Q023Q024Q021Q03

9. August/03 TNE - Conference Call – 2Q03 8 EBITDA - Consolidated R$m

10. August/03 TNE - Conference Call – 2Q03 9 Capex R$m 386 509 185 295 697 Wireless Wilreine

11. August/03 TNE - Conference Call – 2Q03 10 44 31 29 265 232 164 220 18 108 126 1Q032Q03 586 651 Taxes on Financial Income -2 Financial Expenses R$m Monetary/Exchange Variations +56 Interest on Loans/Debentures -33 Banking Fees & Cont. Provision +18 Other Financial Expenses +26 +65

12. August/03 TNE - Conference Call – 2Q03 11 Debt Profile – Net Debt Position R$m A 5% reduction in net debt

13. August/03 TNE - Conference Call – 2Q03 12 Debt Profile – Maturity Schedule R$ m Total Debt: 11,394 1,100 2,340 2,420 3,112 1,032 508 882 2H2003200420052006200720082009 onwards % To be Amortized 2H20039.7% 200420.5% 200521.2% 200627.3% 20079.1% 20084.5% 2009 onwards 7.7% Total 100.0%

14. August/03 TNE - Conference Call – 2Q03 13 Outlook

15. August/03 TNE - Conference Call – 2Q03 14 Q&A Session

16. August/03 TNE - Conference Call – 2Q03 15 “Safe Harbor” Statement Investor Relations Rua Humberto de Campos, 425 / 7º andar Leblon Rio de Janeiro -RJ Phone: ( 55 21) 3131-1314/1313/1315 Fax: (55 21) 3131-1155 E-mail: invest@telemar.com.br Visit our website: http://www.telemar.com.br/ri 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