1. TELE NORTE LESTE PARTICIPAÇÕES S.A. March, 2002

2. 2 Overview  Largest Telco in Latin America: 18.1 million lines installed 14.8 million lines in service  Concession Area: Region I 65% of Brazilian Territory 16 states (Rio, Minas, Bahia, …) 93 Million pops (54% of Country´s total) 40% of Country’s GDP Over 21 Million Households  Tele Density: 16% ( vs. 22% National Average)

3. 3  TNLP4: Heaviest Weighted Stock in IBOVESPA  One of Leading LatAm ADRs’ in the NYSE (TNE)  Market Value: US$ 5.1 billion (March/01)  Free Float: 80% of Total Shares  Investment grade rating: Fitch / BBB- Moody´s / Baa3 S&P / brAA+ Overview

4. 4 2001 Main Achievements  Corporate Restructuring of wireline business; Corporate Restructuring of wireline business;  Early Compliance with Anatel´s 2003 targets;  Wireline operating restructuring;  Acquisition of PCS license for Region I;

5. 5  Consolidation (“16 operating co´s 1 – Telemar Norte Leste”);  Operational and administrative efficiency gains;  Better utilization of Tax Loss Carry-forwards (R$ 890 million);  Market recognition – Animec award. (Braz. Nat´l Investors Assoc.) Corporate Restructuring

6. 6 TELE NORTE LESTE PARTICIPAÇÕES S.A 80.1% 17.6% Corporate Restructuring Previous Shareholding Structure Corporate Restructuring - Previous Shareholding Structure HICORP OUTSOURCING TNL ACESSOCONTAXTNEXTTNL PCS TELEMAR PARTICIPAÇÕES S.A RIO DE JANEIRO ESPÍRITO SANTO MINAS GERAIS PIAUÍ SERGIPE MARANHÃOPARÁ ALAGOAS RIO GRANDE DO NORTE CEARÁ BAHIA AMAPÁ PERNAMBUCO RORAIMAAMAZONAS PARAÍBA 69%79%81%61%69%86%76%64% 83%78%73%64%55%81%60%75% Note: percentages reflect TNL holdings; balance is minoritary shareholders Free Float 2.3% Treasury

7. 7 TELE NORTE LESTE PARTICIPAÇÕES S.A 80.1% 17.6% HICORP OUTSOURCING TNL ACESSOCONTAXTNEXTTNL PCS TELEMAR PARTICIPAÇÕES S.A Free Float TELEMAR Norte Leste Branches Bahia SergipeRio Grande do Norte AlagoasParáRoraima Espírito Santo Paraíba Pernambuco AmapáCeará Piauí Maranhão Minas Gerais Amazonas Rio de Janeiro 2.3% Treasury Corporate Restructuring Current Shareholders´ Structure Corporate Restructuring – Current Shareholders´ Structure 79.6%

8. 8 Shareholders’ Structure Tele Norte Leste Participações S.A. Free Float Preferred Shares -----99.7% Brazil ------ 58.1% ADR ------- 41.9 % Common Shares ------- 44.4 % 80.1%17.6% Common Shares = 52.3% TELEMAR PARTICIPAÇÕES S.A. Total Shares: 378,250 mn Preferred: 252,167 mn Common: 126,083 mn Shares in Treasury = 2.3% TOTAL CAPITAL BNDESPar Fiago AG Telecom ASSECA Participações Lexpart Part. L. F. Tel BrasilCap BrasilVeículos 25.0% 19.9% 11.3% 5.0% Market Cap = R$ 14.0 billion Dec/01

9. 9  5.3 million new lines installed;  296 thousand public phones installed;  16,420 localities covered;  77 million inhabitants benefited from the program;  Over 97% digitalization rate;  Over 17 thousand km of optic fiber network;  US$ 9.7 billion CAPEX since privatization. Early Compliance with Anatel´s 2003 Targets and other achievements

10. 10 Early Compliance with Anatel´s 2003 targets Platform Growth 15,0 Lines in Service Lines Installed (in millions) 20,0 1998 Utilization Rate (%) 1999200020012002E 89% 92% 82% +/-90% LIS +106% LI +123%

11. 11  Centralization of operational systems;  Centralization of operational and administrative activities;  Better control and cost management;  Improvement of internal processes;  Headcount reduction. Wireline Operating Restructuring

12. 12 Wireline Operating Restructuring Total Employees (ex-Contax) Average Employees (ex-Contax) Total Employees (ex-Contax)

13. 13  Acquisition of PCS license for Region I (March/2001);  USD 1.4 billion of suppliers and banks facilities;  R$ 2.2 billion CAPEX in 2001 (R$ 1.2 bn for license);  Launching brand name. Acquisition of PCS license for Region I Mobile Phone Business

14. 14  Revenue growth; 2001- Financial and Operational Results  Improvement in gross revenue per employee ratio;  Operating expenses;  Bad debt provision;  EBITDA;  Income statement; Income statement;  Balance Sheet. Balance Sheet.

15. 15 2001- Financial and Operational Results Revenue Growth (R$ mm) +97% (98/01) CAGR (2001/98) 25.3%

16. 16 Gross Revenue per Employee (R$ Thousand /year) Total employees, but excluding PCS and Contax Average Annual Growth (2001/1998) 46.7%

17. 17 Operating Expenses Breakdown (R$ Million) 40 17 33 10 33 21 27 19 38 30 32 -10 51 34 25 2,977 2,774 2,460 4,328 %

18. 18 Bad Debt Provision (R$ Million) 812 114 212 219 5.9% 2.5% 1.6% 2.0% 0 100 200 300 400 500 19981999200020012002E 0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% Bad DebtBad Debt/Gross Revenue

19. 19 End of Period Total Partial % of Total Lines in Service Line Blocked & Disconnected Blocked Lines (in thousands)* 1,187 1,152 1,185 945 6.4% 8.1% 9.5% 8.5% Mar-01Jun-01Sep-01Dec-01 Disconnected Lines (in thousands) 413 472 636 767 1Q012Q013Q014Q01  = 2,288 Partial Blocking´-outgoing calls:30 days past due Total Blocking – all calls:60 days past due Disconnected:90 days past due

20. 20 EBITDA (R$ Million) 0% 1998199920002001 Margin (%) 34,1% 49,6% 48,8% 54,3% 20% 40% 60% 199819992000 2001

21. 21 Consolidated Income Statement Plant growth F-M Traffic growth Debt increase

22. 22 Consolidated Balance Sheet

23. 23 Total Debt – 2000/2001 30%

24. 24  Cost Drivers: - Increase of operating efficiencies; - Headcount reduction; - Plant Maintenance - Bad debt control 2002 OUTLOOK  Revenue Drivers: - Plant Expansion - New Services – LD - New Markets – Corporate Regions 2 and 3 - ARPU Improvement Revenue Drivers: - Plant Expansion - New Services – LD - New Markets – Corporate Regions 2 and 3 - ARPU Improvement  CAPEX reduction;  Net Debt forecast;  PCS roll out.

25. 25 2002 OUTLOOK -Revenue Drivers Platform Expansion (mm) 7.8 9.7 11.8 14.8 19981999200020012002 Lines in Service by year end 7.2 8.6 10.6 13.6 15.5/15.6 19981999200020012002 Average Lines in Service

26. 26 Internet Access National & International Long Distance Calls Data Business New Businesses  Adding Value Region I Region III Region II

27. 27  Headcount Reduction - 40% in average  3rd Party services  Bad debt control - less than 5% of Gross Revenue  Marketing expenses wireline (30% reduction) wireless (as partially deferred) 2002 OUTLOOK Cost Drivers

28. 28 2002 OUTLOOK CAPEX Reduction (R$ Bi) Capex 19981999200020012002 2.52.2 2.8 10.1 2.5 2001 R$ 10.1 bi 2002 R$ 2.5 bi WirelineBusiness Wireless Business -75%

29. 29 Debt Structure – December 2001 (R$ mn) TOTAL = 8,920 Maturity Profile 17% 14% 16% 17% OF R$ 8,938 million total debt R$ 5,382 million in foreign currency (60%)* at average interest rate of LIBOR +7% p.a. R$ 3,538 million in Brazilian currency (40%): at average interest rate of + 17% p.a. 36% 2006 and beyond 2002 2003 2004 2005 * Fully Hedged ST 1,371 Long Term 7,549 Net Debt 7,686 Cash 1,234

30. 30 PCS – Roll Out TNL PCS - ´´Oi´´  Apr/02 -ReadytoLaunch  10States- 160cities  Main suppliers: Nokia, Alcatel, Siemens  TechnologyGSM/GPRS  Operating Agreements InfrastructureCo-siting Interconnection Roaming  Operating Synergies Billing&Credit Infrastructure&BackOffice Data Base 12 months target 500,000Subs

31. 31 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. “SAFE HARBOR” STATEMENT

32. 32 Investor Relations New Address Rua Humberto de Campos, 425 / 8º andar Leblon Rio de Janeiro -RJ Phone: ( 55 21) 3131-1314/1315/1313 Fax: (55 21) 3131-1325/ 3131-1326 E-mail: invest@telemar.com.br Visit our new website: http://www.telemar.com.br/ri