September/02 1 TELE NORTE LESTE PARTICIPAÇÕES S.A.

September/02 2  Largest Telco in Latin America: 17.7 million lines installed* 14.9 million lines in service*  Concession Area:  65% of Brazilian Territory / 93 million people  40% of Country’s GDP  Over 21 Million Households  Tele Density: 16% ( vs. 22% National Average)  TNLP4: Heaviest Weighted Stock in IBOVESPA  Free Float: 79% of Total Shares  Level 2 ADR (NYSE:TNE): 28% of Total Shares  Market Value: US$ 3.4 billion (August/02) Overview * In June/02

September/02 3 TELE NORTE LESTE PARTICIPAÇÕES S.A 79.0% 18.7% HICORP* OUTSOURCING TNL ACESSO*CONTAX* TNEXT* TELEMAR PARTICIPAÇÕES S.A. ** TELEMAR PARTICIPAÇÕES S.A. ** TELEMAR Norte Leste 2.3% Tresuary 79.5% Free Float 18.9% 1.6% Treasuary FREE FLOAT Pegasus 24.4% Corporate Structure *100% owned Subsidiary ** Controlling Shareholder

September/02 4 Shareholders´ Meetings At least one annual general meeting Board of Directors Monthly Meetings 11 board members (+ 11 alternates)10 shareholders´ representatives plus the CEO Independent Accountants PricewaterhouseCoopers Executive Committee Corporate Structure

September/02 5  Finance Committee Monthly meetings 10 members Objectives: Review, analyze and advise the Board of Directors on: Financial Risks, Insurance Policy, Independent Accountants, Internal Audit Program, Budget, etc.  Procurement and Investment Committee 6 members Objectives: Advise the Board of Directors on procurement and execution on the capital expenditures program.  Compensation Committee Semiannual 3 members Objectives: Define conditions of employees´ benefits in general and the stock option program in particular. Board Committees

September/02 6 Personnel Full-Time Employees2Q013Q014Q011Q022Q02% yoy TMAR16,79515,80310,66310,48310,283-39% Connect4,1416,9773, % TNE+Other Subsidiaries % Wireline Total 21,897 23,837 15,056 11,889 10,921-50% Oi % Contax9,55812,11911,98110,39711,59421% Total 31,606 36,242 27,471 22,856 23,178-27%

September/02 7 Platform Growth

September/02 8 Quarterly Net Additions (in 000) 2Q01 3Q014Q011Q022Q02

September/02 9 Revenue Growth (R$ Mn) +97% CAGR 25.3%

September/02 10 Employee Productivity - Wireline +121% ( LIS/ Employees)

September/02 11 Revenue per Employee * (*) Gross Revenue / Full-time wireline employees (R$ 000/year) (**) Annualized ratio

September/02 12 Gross Revenue - Quarterly Growth (R$ Mn) 3Q 1Q 2Q 4Q 3,915 5,015 6,406 7,533 1HALF2HALF %51% %54% %54% %53%

September/02 13 Gross Revenue Breakdown (R$ Mn) 1H01 1H02 6, % 24.0% 11.4% 8.8% 5.9% 6.9% 45.0% 21.9% 10.9% 10.0% 6.0% 6.2% 7,533 (+18%) LocalFixed- Mobile Network Usage Long Distance DataOtherTOTAL 100.0%

September/ ,397 2,188 1,832 1,372 1,448 Operating Expense Breakdown (R$ Mn) Ex- Interconnection % -34% -44%

September/02 15 Fixed Mobile Revenue & Interconnection Costs (R$ Mn)

September/02 16 R$ Million % of Gross Revenue * Normalized Level (excluding non-recurring adjustments) Bad Debt Provisions

September/02 17 Consolidated Income Statement

September/02 18 Consolidated Balance Sheet (R$ Mn)

September/02 19 Partial Blockage (outgoing calls):30 days past due Total Blockage (all calls):60 days past due Disconnection:90 days past due Lines Blocked (in 000)

September/02 20 Disconnected Lines (in 000) (in 000)

September/ % 44.7% EBITDA Margin EBITDA Growth (R$ Mn) (*) Excluding Depreciation and Amortization

September/02 22 EBITDA – Quarterly Statistics EBITDA (R$ MM)EBITDA Margin (%)

September/ % 36.1% 99.6% 14.8% CAPEX / Net Revenue /2002 Capex / Net Revenue * Includes PCS 34.5%

September/02 24 CAPEX – Quarterly Statistics - Consolidated (R$ Bn)

September/02 25 Wireline CAPEX 1998 / 2002E (TMAR)

September/02 26 TOTAL = 9,701 TOTAL DEBT 11% 8% 18% 20% DEBT PROFILE R$ 6,251 million foreign currency (64%)*: LIBOR + 5,19% p.a. R$ 3,450 million in Brazilian currency (36%): (+ 17.4% p.a.) 43% 2006 and beyond * 100% Hedged ST 1,220 Long Term 8,481 Net Debt 9,128 Cash 573 R$ mn Debt Structure – 06/30/02

September/02 27 Changes in Debt Position – TNE (R$ Mn)

September/02 28  Cost Drivers: Increase operating efficiencies; Headcount reduction; Maintenance costs reduction; Bad debt control; Oi – operating / financial expenses OUTLOOK 2002  Revenue Drivers: Rate increase Platform in service growth New Services – Long Distance /Data New Markets Revenue Drivers: Rate increase Platform in service growth New Services – Long Distance /Data New Markets  CAPEX reduction – R$ 2 billion;  Net Debt under control - less than R$ 9 billion.

September/02 29 Average Rates for Telecommunication Services* (R$)

September/02 30 National & International Long Distance Calls New Businesses  Adding Value Region I Region III Region II Outgoing Calls Incoming Calls International Calls 031 Global

September/02 31  Headcount Reduction - 40% in average  Third Party Services Reduction  Bad Debt Control - less than 5% of Gross Revenue (in average)  Marketing Expenses wireline (30% reduction) wireless Cost Drivers

September/ / CAPEX Reduction - TNE CAPEX R$ 10.1 bn 2002 R$ 2.0 bn TMAR- Wireline Business Oi - Wireless Business -80%

September/02 33 Oi  Current Status  Tariffs  CAPEX

September/02 34 TNE – PCS ´´Oi´´ - Current Status  Financing US$ 1.4 billion credit (suppliers and bank facilities);  Launching of the brand name (Jan/02);  Launch of Operations 25 th June ;  14 Metropolitan areas (16 as of 03) – 320 cities;  Main Suppliers: Nokia, Alcatel, Siemens;  Distribution channels = over 1,600 point of sales;  2,000 integrated sites;  Employees: 663 in June;  400,000 subscribers in August/02;  Agreement with 19 countries for International roaming;  Technology GSM/GPRS - in all Capitals;  CAPEX through 2004: R$ 2.7 billion (R$ 1.4 billion until 1H02).

September/02 35 Tariffs Oi 40Oi 80Oi 160Oi 300 Monthly Fee (R$) Minutes Tariff (R$ / min) Post- Paid Pre-Paid Tariffs (R$ per minute) Normal Limited 0.99 Flat Oi to Fixed -line Oi to Oi Oi to other cellular company Oi to Fixed-line Oi to Oi Oi to other cellular company

September/02 36 CAPEX 2001 / 2004:R$ 3.8 bn R$ 1.1bn – License (2001) R$ 2.7 bn – Network Network CAPEX (R$ bn): 1H02

September/ – Industry Outlook  Increasing competition DLD Market (Outgoing calls from Regions 1 and 3) Data Businesses (Corporate – Nationwide)  Regulatory Issues  Interconnection Battle Long Distance x Local Telcos Wireline x Wireless  Use of Universalization Funds (FUST)  Bad Debt Control – New Procedures  SMP Rules (Wireless)  Introduction of 2.5 G (?)  Beginning of Consolidation / Alliances / Partnership´s  Cellular/Cellular (Block Strategy – TEM/PT; TIM; Telecom Americas)  ILEC´s / CLEC´s  ILEC´s / Mirrors  ILEC´s / Cellular ( Band B´s / Independents)  ILEC´s / ISP´s (Flat Rate Model)

September/02 38 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 Investor Relations Rua Humberto de Campos, 425 / 8º andar Leblon Rio de Janeiro -RJ Phone: ( 55 21) /1315/1316/1313 Fax: (55 21) Visit our website: