0 September, 2008.

Market Institutional Presentation Agenda World Mobile Market Brazilian Mobile Market

Market Institutional Presentation Agenda World Mobile Market Brazilian Mobile Market

3 Institutional Presentation World Users Evolution - billion Source:Teleco – June 08 Handsets

Institutional Presentation Major Markets Brazil is the 5th largest mobile market in the world reaching 141mn handsets in September 08 1º 2º 3º 4º 5º 6º China India US Russia Brazil Indonesia 601 Source: Merril Lynch - Global Wireless Matrix 3Q

5 Source: Global Wireless Matrix. – 2Q08. Mobile Penetration Most telecom/media services still have excellent growth prospects in Brazil due to the low penetration: 69% in mobile as of June Institutional Presentation

Market Institutional Presentation Agenda World Mobile Market Brazilian Mobile Market

7 Panorama Population*: Million Homes*: 56.3 Million Area: 8,514,215 km² GDP**: R$ 2,778.0 Billion (US$ 1,621.3 Billion) GDP per capita**: R$ 14,478 (US$ 8,449) Source: * Estimated IBGE ** International Monetary Fund, World Economic Outlook Database, estimated Institutional Presentation

8 Launch of cell technology in the main Brazilian cities Introduction of third generation technology F (in million of lines) + 200% in the last 5 years Brazil holds 5th place in the world mobile telecom ranking 1997 Opening of the Brazilian telecom market Evolution of mobile telecom in Brazil Institutional Presentation

9 Source: Teleco and Anatel – 2Q08. Mobile Market Evolution +24% 118 Million Institutional Presentation +21% +33% +41% +31% +16% +21% +16%

10 Source: Anatel – 3Q08. Mobile Market Evolution Institutional Presentation

11 Source: Teleco and Anatel – 2Q08. Technologies Institutional Presentation

Customers Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today

Customers Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today

Joint venture formation Institutional Presentation Vivo was launched in April/2003: joint venture by 7 cell phone carriers, leaders in their markets, constituting the largest cell phone carrier in Brazil. + =

CBF Sponsorship Vivo Launch Launch of innovative products and services Vivo ao Vivo Vivo Play 3G Launch of Vivo Escolha Plans CBF / World Cup Brand trajectory Institutional Presentation

Brand trajectory Brand repositioning Aggressive promotional pricing National coverage Launch of Digital TV Institutional Presentation

17 The brand allies quality of service and vocation for innovation. Source: Ipsos Asi BrandGraph tracking - mar/08 Currently, Vivo is Top of Mind in the category and is strongly associated with the following attributes: Most reliable brand Greatest coverage Best signal quality Most advanced technology Best mobile telecom option Recognition Institutional Presentation

18 “Most reliable brands in Brazil” (IBOPE / 2007) “Most valuable brands” (Brand Finance / 2007) For the 4th consecutive year Vivo is the most reliable brand in Brazil in the mobile telecom category. Vivo is the most valuable brand in mobile telecom in Brazil with a total of R$ 2.25 billion. Recognition Institutional Presentation

19 Recognition Institutional Presentation Vivo holds higher satisfaction levels among users than the market average. Source: GFK Total Satisfaction Survey – 2S07 Ratings vary from 0 (extremely unsatisfied) to 10 (extremely satisfied). Overall satisfaction Market averageVivo

Customers Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today

21 Source: Planning and Performance Department – September Distribution 29% 12% -2% 15% 29% 10% Institutional Presentation

Customers Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today

23 Source: Planning and Performance Department ; Vivo’s Customer Base - Thousands Institutional Presentation

24 Pre and Post paid plans - Millions Institutional Presentation Source: Planning and Performance Department;

Customers Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today

26 Vivo Escolha 50 Vivo Escolha 90 Vivo Escolha 180 Vivo Escolha 350 Vivo Escolha 650 Vivo Escolha 900 Vivo Completo Plans Franchise Local Minutes Mobile + Fixed SMS Included + Minutes on net Long Distance and Roaming Free + SMS and Wap SMS + MMS +Wap Favorite Vivo Number Free Bonuses R$ min - 5 min + 30 min - 90 min min min min min100 1,400 min100 R$ R$ R$ R$ R$ R$ min 150 min 300 min 15 min min 30 min min KB KB MB - 1,000 min = = = = = = = & & & & & & or + “Vivo Escolha” Plans Institutional Presentation

Customers Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today

28 ARPU – R$ Institutional Presentation

29 SAC and Churn Institutional Presentation SAC CHURN

30 Net Revenue – R$ million Institutional Presentation CAGR : 7.6%

31 EBITDA – R$ million Institutional Presentation *Including extraordinary effects of ICMS on Telemig of R$ 240 million.

32 Capex – R$ million Institutional Presentation

33 Net Debt and Cash Flow – R$ million Institutional Presentation

Customers Institutional Presentation Agenda Vivo’s History Brazilian Market and Vivo Vivo’s Customer Base Vivo Escolha Plans Vivo’s Operating and Financial Performance Vivo Today

35 Today Institutional Presentation Source: Anatel 3Q08 (Brazil) /Merril Lynch - Global Wireless Matrix 2Q08 (World) In the Second Quarter 2008, the clients of Telemig Celular joined Vivo’s client base, becoming part of a company that is among the world’s 15 biggest mobile operators, with a community of 42.3 million customers. BrazilWorld 1º2º3º4º5º14º