TELE NORTE LESTE PARTICIPAÇÕES S.A. Salomon Smith Barney Conference March, 2002

2  TNLP: Heaviest Weighted Company in IBOVESPA  One of Leading LatAm ADRs’ in the NYSE (TNE)  Market Value: US$ 5.95 billion (December/01)  Free Float: 80% of Total Shares  Investment grade rating: Fitch and Moody´s Overview  Largest Telco in Latin America: 14.8 million lines  Concession : 65% of Brazilian Territory  Population : 93 Million (54% Country´s total)  40% of Country’s GDP  Over 21 Million Households  Penetration : 16% ( 22% in Brazil)

Main Achievements  Corporate Restructuring of wireline business; Corporate Restructuring of wireline business;  Anticipation of Anatel´s 2003 targets;  Wireline operating restructuring;  Acquisition of PCS license for Region I;

4  Consolidation (“16 1”);  Operational and administrative efficiency gains;  Better utilization of Fiscal Credits (R$ 890 million);  Market recognition – Animec award. Corporate Restructuring

5 TELE NORTE LESTE PARTICIPAÇÕES S.A 80.4% KT 17.6% KT 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% % over KT Free Float 2% Treasury

6 TELE NORTE LESTE PARTICIPAÇÕES S.A 80.4% KT 17.6% KT 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% Treasury Corporate Restructuring Current Shareholders´ Structure Corporate Restructuring – Current Shareholders´ Structure

7  5,625 thousand new lines installed;  296 thousand public phones installed;  16,420 localities attended;  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. Anticipation of Anatel´s 2003 Targets

8 Anticipation of Anatel´s 2003 targets Platform Growth 0,0 5,0 10,0 15,0 2002E Lines in Service Lines Installed (in millions) 20, Utilization Rate (%) E 89% 92% 82% +/-90% LIS +90% LI +119%

9  Centralization of operational systems;  Centralization of operational and administrative activities;  Better control and cost management;  Improvement of internal process;  Head count reduction. Wireline Operating Restructuring

10 Wireline Operating Restructuring Total Employees (ex-Contax) Average Employees (ex-Contax) Total Employees (ex-Contax) (40%)

11  Acquisition of PCS license for Region I (March/2001);  Project Implementation = ready to launch;  USD 1.4 billion of suppliers and banks facilities;  R$ 2.2 billion CAPEX in 2001 (R$ 1.2 bn for license);  Brand name. Acquisition of PCS license for Region I Mobile Phone Business

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

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

14 Gross Revenue per Employee (R$ Thousand /year) Total directly employees (-) PCS (-) Contax

15 Operating Expenses Breakdown (R$ Million) ,977 2,774 2,460 4,328 %

16 Bad Debt Provision (R$ Million) % 2.5% 1.6% 2.0% E 0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% Bad DebtBad Debt/Gross Revenue

17 End of Period Total Partial % of Total Lines in Service Line Blocked & Disconnected Blocked Lines (in thousands)* 1,187 1,152 1, % 8.1% 9.5% 8.5% Mar-01Jun-01Sep-01Dec-01 Disconnected Lines (in thousands) Q012Q013Q014Q01  = 2,288

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

19 Consolidated Income Statement Plant growth F-M Traffic growth Debt increase

20  Cost Drivers: - Increase of operating efficiencies; - Headcount reduction; - Plant Maintenance - Bad debt control 2002 OUTLOOK  Revenue Drivers: - Plant Expansion - New Services – LD - New Markets Revenue Drivers: - Plant Expansion - New Services – LD - New Markets  CAPEX reduction;  Net Debt forecast;  PCS roll out.

OUTLOOK -Revenue Drivers Platform Expansion (mm) Lines in Service by year end / Average Lines in Service

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

OUTLOOK CAPEX Reduction (R$ Bi) Capex R$ 10.1 bi 2002 R$ 2.5 bi WirelineBusiness Wireless Business

24 Debt Structure – December 2001 (R$ mn) TOTAL = 8,938 LT DEBT 17% 14% 16% 17% DEBT PROFILE R$ 5,382 million foreign currency (60%)*: LIBOR +/- 7% p.a. R$ 3,556 million in Brazilian currency (40%): (+/- 17% p.a.) 36% 2006 and beyond * Fully Hedged ST 1,388 Long Term 7,549 Net Debt 7,705 Cash 1,234

25  Launch in 2 nd Quarter;  New technology GMS/GPRS, with new services;  Synergies with TMAR (fixed wire line);  Integrated operator (fixed+mobile);  Target of 500,000 clients (market-share: ~2.5%) in the first year;  Sharing of infrastructure lower CAPEX. PCS – Roll Out

26 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

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