Company Profile For Telemar Norte Leste S.A.

Telemar Norte Leste SA is a Brazil-based company involved in the telecommunications sector. It operates a fixed-line and mobile telephone service in Brazil under the name Oi. The Company also offers Internet network, through the service Oi Velox, and cable television, through Oi TV, to both individual and corporate customers. Telemar Norte Leste SA operates in the states of Rio de Janeiro, Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas, Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Piaui, Maranho, Para, Roraima, Amapa and Amazonas. Its subsidiaries include TNL PCS (Oi), Telemar Internet Ltda and Serede Servicos de Rede SA, among others. The Company is owned by Tele Norte Leste Participacoes SA. In 2008, the Company launched the third generation (3G) service. As of January 2009, Telemar Norte Leste SA acquired Brasil Telecom Participacoes SA.

BRIEF: For the nine months ended 30 September 2009, Telemar Norte Leste SA's total revenue increased 61% to R$22.29B. Net loss totaled PEN109.5M, vs. a profit of PEN1.43B. Total revenue reflects improved performance across the Company's activities. Net loss reflects a decrease in gross profit margins as well as higher selling and administrative expenses together with significantly increased financial and other expenses.