February/03 1 Conference Call 4Q02

February/03 2 Financial and Operational Results Debt/ Hedge Outlook Q&A Session Agenda TNE TNEConfence Call – 4Q02

February/03 3 Revenue Growth – Net Revenues (R$ Million) TNE TNEConfence Call – 4Q02 4Q01/ 4Q02FY01/ FY % 2,733 3,226 3Q02/ 4Q02 3,083 3,226 10,103 11, %+4.6%

February/03 4 Gross Revenue Growth vs 2001 TNE TNEConfence Call – 4Q02 3% 16% 32% 17% 15% 46% 0,1% Local (ex-VC1) Long Distance Advanced Voice Pay Phones DataVC1Network Usage Wireline Avg Growth 14%

February/03 5 Long Distance Services R$ Million TNE TNEConfence Call – 4Q Q024Q Q02 4Q Q02 4Q02 InternationalInterregionalIntra-regional

February/03 6 Events of the quarter - Oi TNE TNEConfence Call – 4Q02 Gross Revenue (R$ Million)Additions (in Thousand) 79% 66% 21% 34% 3Q024Q02 Services Handsets % 20% 3Q024Q02 Post Paid Pre Paid Net Additions 4Q02 * Band A+B 43% Oi 57% Region I (Dec 02) Band A+B 91.1% Oi 8.9% * - does not include TIM. Band B net adds were estimated

February/03 7 Costs & Expenses TNE TNEConfence Call – 4Q02 6,5846, ,966 1,693 4Q024Q01 1,581 1,675 4Q024Q01 TNLTMAR

February/03 8 Cost/ Expenses Performance (R$ Million) % Gross Revenue TNE TNEConfence Call – 4Q02 6.6% 5.0% 17.1% 14.7% 5.7% 3.8% PersonnelInterconnectionBad Debt FY01 FY02

February/03 9 Bad Debt Provisions TNE TNEConfence Call – 4Q02 5.2% 5.6% 4.2% 3.0% 2.8% 4Q011Q022Q023Q024Q02 5.7% 3.8%

February/03 10 Ebitda (R$ Million) TNE TNEConfence Call – 4Q02 3,558 5,290 FY01/ FY02 Ebitda Margin 44.6% 35.2% 50.0% 44.0% % 41.7% 47.9% 50.7% 1Q022Q023Q024Q02

February/03 11 Capex TNE TNEConfence Call – 4Q02 10,061 2,031 FY01/ FY02 (R$ Million) Capex/ Net Revenue (TMAR) - % 36.1% 34.5% 78.0%9.4% Contax 3% TMAR 51% Oi 46% 2002 Breakdown R$ 2,031 million

February/03 12 Free Cash Flow TNE TNEConfence Call – 4Q ,013.44, ,1 -1,393.81, , Net ProfitDeprec./ Amort. Interest and Mon Var. Working Capital OthersOper. Cash Flow CapexOthersFree Cash Flow , ,834.24, ,094.0 Net ProfitDeprec./ Amort. Interest and Mon Var. Working Capital OthersOper. Cash Flow CapexFree Cash Flow

February/03 13 Debt Profile – Net Debt (R$ Million) TNE TNEConfence Call – 4Q02 8,317 9,128 9,006 1Q022Q023Q02 8, Q02 Pegasus 9,121

February/03 14 Debt Profile – by type TNE TNEConfence Call – 4Q02 4Q024Q01Var.% Net Debt9,121 7, % Suppliers1,635 2, % Other Account playable % Total11,117 10, %

February/03 15 Debt Profile – Maturity TNE TNEConfence Call – 4Q02 16% 18% 28% 9% 4% 5% onwards

February/03 16 Debt Profile TNE TNEConfence Call – 4Q02 Short Term Swap/ Swap to Maturity Hedge Structure 8.9% 74.6% 11.3% 5.2% Short Term Swap Swap to Marturity Unhedged Position Dolar Linked 132% 113% 77% 72% 46% onward USD MM Current Hedge BookHedging Demand

February/03 17 Lines in Service Revenue CAPEX Bad Debt Provision EBITDA Net Debt Outlook TNE TNEConfence Call – 4Q02

February/03 18 Q&A Session TNE TNEConfence Call – 4Q02

February/03 19 “Safe Harbor” Statement TNE TNEConfence Call – 4Q02 Investor Relations Rua Humberto de Campos, 425 / 7º 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