TELE NORTE LESTE TELE NORTE LESTE PARTICIPAÇÕES S.A. PARTICIPAÇÕES S.A. Conference Call 3Q02 Conference Call 3Q02

I.Events of the quarter II.Financial Results III.Debt Profile/ Hedge Position IV.Oi V.Outlook VI.Q&A Session Agenda Slide 2

1.Oi’s Operational Launching 2.Domestic Long Distance Service 3.International Long Distance Service 4.Acquisition process of Pegasus 5.Operating in other regions Anatel Targets: Reaping the Benefits Slide 3

Results of the New Services Slide 4 DLD (Interregional):  R$ 18 million in 60 days! ILD (International):  R$ 2 million in 90 days! 500,000 clientes in just 3 months! Coverage 2,300 operational sites 14 states / 396 cities covered Domestic & International Roaming

Economic Environment Slide 5 Exchange Rate (USD) Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 R$ 2.35 R$ 2.84 R$ 3.89 EMBI Brazil ( JP Morgan) Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep points 1,527 points 2,396 points

Revenue Growth – Net Revenues (R$ million) Slide 6 Main Drivers: Local Services LD Services Wireless Services (Oi) +17% 3Q01/ 3Q029M01/ 9M02

Gross Revenue Growth - 3Q02/ 3Q01 Service Breakdown Slide 7 37% 4% 19% 50% 14% 17% LocalLong DistancePay PhoneDataFixed Mobile Network Usage Average = 18%

Cost / Expenses Performance (R$ million) Slide 8

Ebitda (R$ Million) Slide 9 3Q01/ 3Q029M01/ 9M02 42% Ebitda Margin 17% 33% 51% 48% 3Q014Q011Q022Q023Q02 49% Consolidated TMAR

Financial Results Slide 10 3Q022Q02 Financial Revenue Interest on Loans/ Dividends Monetary & Exchange Variations Premiun Amortizations, PIS, Confins94 41 Others3 7 Financial Expenses Net Financial Result Atualizations(CPMF,JCP,Div, Contingencies) Exchange Loss (Mn): Monetary and Exchange Var.: R$ 556 Net Interest Expenses: R$ (228) Dollar Based Financial Rev.: R$ (93) TOTAL:R$ = 6.8% Cash Effect Accounting Effect

Capex (R$ Billion) Slide 11 3Q01/ 3Q02 9M01/ 9M02 Capex/ Net Revenue 16%14% 16% 110% 120% 85% 79% 1Q012Q013Q014Q011Q022Q023Q02

3Q02 Consolidated Net Result Main Effects Slide 12 (R$ 235 Mn) F/X Losses Net Loss (R$ 382 Mn) (R$ 297 Mn) Oi’s Net Loss

Debt Profile – Net Debt (R$ Million) Slide 13

Debt Profile Slide 14 Debt Currency Breakdown 46% 11% 10% 33% Local US$ Yen (Swap to US$) CY Basket 52% 0.5% 15% 20% 13% IGPM CDI TJLP Fixed Reais Rate Libor Interest Index Currency%Cost US$46Libor + 5% p.a Yen111.7% p.a Basket1012.3% p.a Real3316.0% p.a Cost of Debt

Debt Profile - Maturity Slide 15

Debt Profile Slide 16 Short Term Swap/ Swap to Maturity USD MM 67.6% 13.1% 13.8% 5.5% Short Term Swap Swap to Maturity Unhedged Position Dolar Linked 142% 103% 75% 72% 50% onward Current Hedge BookHedging Demand Hedge Structure

Oi Slide 17

Slide 18 Outlook

Q&A Session Slide 19

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