1. February/03 1 Conference Call 4Q02

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

3. February/03 3 Revenue Growth – Net Revenues (R$ Million) TNE TNEConfence Call – 4Q02 4Q01/ 4Q02FY01/ FY02 +17.5% 2,733 3,226 3Q02/ 4Q02 3,083 3,226 10,103 11,874 +18.0%+4.6%

4. February/03 4 Gross Revenue Growth - 2002 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%

5. February/03 5 Long Distance Services R$ Million TNE TNEConfence Call – 4Q02 2 13 3Q024Q02 18 41 3Q02 4Q02 404 416 3Q02 4Q02 InternationalInterregionalIntra-regional

6. 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 366 184 80% 20% 3Q024Q02 Post Paid Pre Paid 500 900 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

7. February/03 7 Costs & Expenses TNE TNEConfence Call – 4Q02 6,5846,545 20022001 1,966 1,693 4Q024Q01 1,581 1,675 4Q024Q01 TNLTMAR

8. 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

9. 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% 20012002

10. 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% 1999200020012002 39.1% 41.7% 47.9% 50.7% 1Q022Q023Q024Q02

11. 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% 1999200020012002 Contax 3% TMAR 51% Oi 46% 2002 Breakdown R$ 2,031 million

12. February/03 12 Free Cash Flow TNE TNEConfence Call – 4Q02 -415.6 -271.0 -2,013.44,172.3165,1 -1,393.81,953.5 3,863.1 1.887.9 Net ProfitDeprec./ Amort. Interest and Mon Var. Working Capital OthersOper. Cash Flow CapexOthersFree Cash Flow 140.4 -5,905.9 -10,834.24,928.342.6 870.7 780.6 3,094.0 Net ProfitDeprec./ Amort. Interest and Mon Var. Working Capital OthersOper. Cash Flow CapexFree Cash Flow 2002 2001

13. February/03 13 Debt Profile – Net Debt (R$ Million) TNE TNEConfence Call – 4Q02 8,317 9,128 9,006 1Q022Q023Q02 8,673 448 - 4Q02 Pegasus 9,121

14. February/03 14 Debt Profile – by type TNE TNEConfence Call – 4Q02 4Q024Q01Var.% Net Debt9,121 7,703 18.4% Suppliers1,635 2,199 -25.6% Other Account playable 362 778 -53.5% Total11,117 10,680 4.1%

15. February/03 15 Debt Profile – Maturity TNE TNEConfence Call – 4Q02 16% 18% 28% 9% 4% 5% 2003200420052006200720082009 onwards

16. 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% 0 100 200 300 400 500 600 700 20032004200520062007 onward USD MM Current Hedge BookHedging Demand

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

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

19. 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) 3131- 1314/1313/1315/1316/1317 Fax: (55 21) 3131-1155 E-mail: invest@telemar.com.br Visit our website: http://www.telemar.com.br/ri 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