1

Vivo Participações

1Q06 Consolidated Results

May, 4 2006

2

• Corporate Restructuring successfully implemented;• Second Stage proposed for incorporation of subsidiaries.

• Quality : 95.6% Anatel’s goals achieved;• Network and Handsets authentication in progress;• Reduction in PDD.

Leadership

Capex

Technology

Finance

Development

• Leadership in cellular telephony in Brazil with 33.7% Market Share*;• More than 30 million clients;• More than 8 thousands points of sale (exclusive or not).

Corporate Governance

• Consolidation / Rationalization of IT/IS;• Coverage;• Customer Care to Corporate Segment.

• EBITDA of R$717.1 millions on 1Q06;• Positive Operating Cash Flow of R$ 435.8 millions.

Highlights

• Digital Coverage in all cities where Vivo operates;• More than 79% of covered cities have 1xRTT;• Percentage of Population served with 1xRTT = 86%.

* 43.5% in it’s authorized areas.

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21,650 24,377

5,3085,761

1Q05 1Q06

Pre Post

Client Base Evolution+11.8% YoY

1Q05 1Q06

Corporate Client Private Client

+ 13.1%

+ 6.1%

+ 12.6%

26,958

+ 8.5%

30,138

+ 11.8%

Post

Growth Percentage

•Loyalty and Retention

•Focus on value clients

4

4,560

3,290

325

4,062

2,935

116

3,995

2,200

92

Vivo C1 C2

Retail Third Party Own Stores

8,1757,113

6,287

Leadership in Distribution & CoverageOnly Operator in 3G : 18 Cities with EV-DO

2,237

1,7521,627

Vivo C1 C2

Cities Covered

86% Pop with 1xRTT1,780 Cities with 1xRTT

Channels of distribution

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Innovation & Technology

• Improves capacity of voice and datatransmission.

• 3G Access Technology ;

• Data Transmission of speed 2.4 Mb/sec;

• High End Activations: + 25% EV-DO;

• More than 80 thousand clients.

• High Speed Internet Access;• More than 12 options of internet access

cards and PDA’s;• Enables automated solutions to banks,

service sector and industries.

25%

75%

High + Mid End Low End

Handsets Models

50% with Digital Camera

7 EV-DO Models

1XRTT

EV-DO

Plack & PDA

TREO 650 Model

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Fale mais por menosFale mais por menos

Customer talks to 30 million persons in Brazil for R$0.30 per minute

Features the recharge value in double to local calls

Features two packages with high minute content at promotional prices

Vivo bom de papoVivo bom de papo

1Q06 Main Marketing Actions

Recarga em dobroRecarga em dobro

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Loyalty and RetentionFocus on Mid and High Range Clients

Incentive to retain Pre-paid client through discounts

in the exchange for a new handset keeping the

number

LOYALTYS

egm

ente

d C

han

ges

for

P

re-P

aid

Pro

gram

of

Poi

nts Points are added and can be used when handset is

exchanged. Balance of points is sent by SMS.

Ove

rlay

CD

MA

Incentive to change TDMA handsets for CDMA

based on points.

Enables mid and high range clients to acquire the

Globalmoto handset at differentiated prices.

Glo

balm

oto

Dir

ect

mai

l

Seg

men

ted

O

ffer

Mig

rati

on

Pre

-Pos

tU

pgra

de

of P

lan

s an

d P

acka

ges

Special offers to retain clients.

Inform to pre-paid clients the advantages of being a Post-Paid.

Adequate plan to profile maximizing value-for-money to client and increase customer satisfaction

RETENTION

Incentive to retain Pre-paid client through discounts

in the exchange for a new handset keeping the

number

LOYALTYS

egm

ente

d C

han

ges

for

P

re-P

aid

Pro

gram

of

Poi

nts Points are added and can be used when handset is

exchanged. Balance of points is sent by SMS.

Ove

rlay

CD

MA

Incentive to change TDMA handsets for CDMA

based on points.

Enables mid and high range clients to acquire the

Globalmoto handset at differentiated prices.

Glo

balm

oto

Dir

ect

mai

l

Seg

men

ted

O

ffer

Mig

rati

on

Pre

-Pos

tU

pgra

de

of P

lan

s an

d P

acka

ges

Special offers to retain clients.

Inform to pre-paid clients the advantages of being a Post-Paid.

Adequate plan to profile maximizing value-for-money to client and increase customer satisfaction

RETENTION

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Net Revenue

268 456 315126

140143

1,0531,018

930

1,1301,373

1,206

1Q05 4Q05 1Q06

Handset Other ServiceNetwork Usage Monthly Subscription

+ 0.6%

2,577

2,9872,594

R$ million

• Right Planning

• Campaigns to incentive the intra network usage;

• Data transmission ;

• Internet access cards; PDA’s and SMS.

9

5.8%6.3%

7.1%

1Q05 4Q05 1Q06

Data Net Revenue Data Net Rev./Service Net Rev.

Data Revenue Evolution

1Q05

4Q05

1Q06

+21%

+22%

0.5 pp

0.8 pp

R$ million

10

22%

59%

19%

WAP SMS ZAP + others

16%

71%

13%

WAP SMS ZAP + others

Data: Services BreakdownIncentive to the Use of Higher Value Added Services

Increase in WAP & ZAP

1Q05 1Q06

41%29%

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(1.9)

(1.5) (0.9)

(2.7)

1Q05 1 - Client BaseGrowth, M ix andBusiness Days

2 - Real ARPUVariation

1Q06 2 - Real ARPUVariation

1 - Client BaseGrowth, M ix andBusiness Days

4Q05

Outgoing 15.5 (0.2) (0.4) 15.0 (1.9) (0.4) 17.3Inbound 13.3 (1.3) (1.5) 10.4 (0.7) (0.5) 11.6

-11.8% -12.4%

ARPU Blended

Outgoing

Inbound

28.8

25.4

29.0

15.5

13.3

15.0

10.4

17.3

11.6

1Q05 vs. 1Q06 1Q06 vs. 4Q05

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(0 ,4)(2,0)

(0,9)

(9,9)

1Q05 1 - Client BaseGrowth, M ix andBusiness Days

2 - Real ARPUVariation

1Q06 2 - Real ARPUVariation

1 - Client BaseGrowth, M ix andBusiness Days

4Q05

Outgoing 52.2 (0.1) 1.1 53.2 (8.2) (0.4) 61.8Inbound 24.9 (1.9) (1.5) 21.5 (1.7) (0.5) 23.7

-3.1% -12.6%

ARPU Post-Paid

77.1 74.7

85.5

52.2

24.9

53.2

21.5

61.8

23.7

1Q05 vs. 1Q06 1Q06 vs. 4Q05

Outgoing

Inbound

13

(9 .7)

(4.6)

(2.7)(3.9)

1Q05 1 - Client BaseGrowth, M ix andBusiness Days

2 - Real M OUVariation

1Q06 2 - Real M OUVariation

1 - Client BaseGrowth, M ix andBusiness Days

4Q05

Outgoing 37.3 (0.5) (5.7) 31.0 (2.0) (1.1) 34.2Inbound 44.6 (4.1) (4.0) 36.5 (1.9) (1.6) 40.0

-17.5% - 8.9%

MOU Blended

81.9

67.5

74.1

37.3

44.6

31.0

36.5

34.2

40.0

1Q05 vs. 1Q06 1Q06 vs. 4Q05

Outgoing

Inbound

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7.1

(6.4)(4.5)

(6.9)

1Q05 1 - Client BaseGrowth, M ix andBusiness Days

2 - Real M OUVariation

1Q06 2 - Real M OUVariation

1 - Client BaseGrowth, M ix andBusiness Days

4Q05

Outgoing 118.2 (0.4) 5.6 123.4 (4.5) (2.7) 130.6Inbound 80.5 (6.0) 1.5 76.0 (2.4) (1.8) 80.1

+0.4% -5.4%

MOU Post-Paid

198.6 199.4210.7

118.2

80.5

123.4

76.0

130.6

80.1

1Q05 vs. 1Q06 1Q06 vs. 4Q05

Outgoing

Inbound

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*SAC Blended

SAC*Strategy focused on Retention and Acquisition of Value Clients

135125141

1Q05 1Q06 4Q05

-11.3% -7.4%

16

181

951

626

165

445

129

728

433

156

434

122

564

412

153

376

General &administrative

expenses

Sellingexpenses

Cost ofhandsets

Personnel

Cost ofservicesrendered

1Q051Q064Q05

*Depreciation is not included.

Operating Costs*Costs Grow with competitive activity

R$ million

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161.0

260.8

88.4

1Q05 4Q05 1Q06

PDD ReductionOperating and Control Initiatives

Structure and Process Initiatives :

Authentication of third party Analog and

TDMA network;

Interception of calls posted by Vivoclients in roaming;

“Credit Scoring”;

“Customer screening”;

“Management of Consumption”.

- 38.3%

R$ million

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EBITDA and EBITDA Margin

125.5

446.3

59.6

1Q05 4Q05 1Q06

EBIT

EBITDA EBIT

717.1

977.7

650.1

27.6%

21.8%

37.9%

1Q05 4Q05 1Q06

EBITDA EBITDA Margin

R$ million

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4,4644,156

8,594 8,416

4Q05 1Q06

Net DebtShareholder's Equity

Gross Debt, Net Debt and GearingImprovement in Gearing. Short Term Debt is Covered.

4,464.44,156.3

4Q05 1Q06

Gross Debt (R$ million) Net Debt (R$ million)

Gearing

4Q05 1Q06

Short Term Long Term

5,482.65,652.8

69%

31%

60%

40%

4Q05 1Q06

0.48 0.53

R$ million

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Net Financial ResultReduction in Financial Expenses

1Q05 1Q06 4Q05

(221.7) (232.4)

(186.3)

- 16.0% - 19.8%

R$ million

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Capex

384.7543.3

92.1

66.6

216.2

85.9

84.0

118.6

103.3

1Q05 4Q05 1Q06

Network Technology Others

535.3

878.1

281.3 11%

29%

21%

1Q05 4Q05 1Q06

Total Capex % Capex/Net Revenues

Main Investments :

Network Quality/Capacity;Coverage Expansion – CDMA 1XRTT and EV-DO;Centralized systems and platforms;Corporate segment: handsets and technology.

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Net Result

1Q05 4Q05 1Q06

R$ million

42

(263)

(179)

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Corporate Structure

Present Proposed

TelemsCelular

TelegoiasCelular

TelematCelular

TeleronCelular

TeleacreCelular

Norte Brasil

Telecom

TCO IP Celular

BRASILCEL, NV62.35%

Mercado37.65%

VIVO PARTICIPAÇÕES S.A.

TelergipeCelular

TelebahiaCelular

Telerj Celular

TelestCelular

Celular CRT

Global TelecomCelular

Telesp Celular

Tele Centro Oeste Celular

100%

100%

BRASILCEL, NV62.35%

Mercado37.65%

VIVO PARTICIPAÇÕES S.A.

100%

GLOBAL TELECOM S.A.

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Anatel StandardsLeadership in Meeting Quality Goals

C1VIVO C3 C2C4

Source: ANATEL (March/2006)

National Ranking among SMP Controlling Companies

(All Indicators)

C1VIVO C3 C2C4

Competitive Edge

SMP Anatel Standards # 2, 3, 5, 6, 7 and 12

First Ranked Network Quality

Best Performance

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Anatel StandardsReduction in Non-Compliance

3.8%

9.3%

12.1%

14.0%15.0%

Mar-05 Jun-05 Sep-05 Dec-05 Mar-06

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ACTIONS

VIVO Social Responsibility

Museu da Língua Portuguesa - Estação da Luz - Dedicated to all languages that have influence on the Portuguese language spoken in Brazil. A project sponsored by Vivo Institute since 2002;

Second “Caravana do Esporte”, a project sponsored by Vivo Institute. 18 less developed cities will be visited;

Inaugurated the “centro esportivo da comunidade Novo Glicério”an NGO Glicerio initiative sponsored by Instituto Vivo;

Inaugurated a “Brinquedoteca” (space with toys for kids to spend leisure time) at the pediatrics section of the Santa casa do Pará, sponsored by the Instituto Vivo.

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Final Remarks

100% Digital

Corporate Restructuring

Stronger Structure;

Advantage of Synergies;

Simplicity;

Integrated Platforms.

System Platforms

Reduction of PDD in the quarter;

Compliance to Anatel Standards;

Authentication networks and handsets in progress .

Coverage

100% Digital;

EV-DO in 18 Municipalities;

1xRTT in more than 79% of the Municipalities;

EV-DO – 3G speed of up to 2,4 Mb/sec.

Focus on Value Clients

Contract base growth;

Increase in Corporate client base;

More than 12 models of ZAP and PDA’s.

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• This presentation contains statements that constitute forward looking statements in its general meaning and within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines, market share, financial results and other aspects of the activity and situation relating to the Company. The forward looking statements in this document can be identified, in some instances, by the use of words such as "expects", "anticipates", "intends", "believes", and similar language or the negative thereof or by forward-looking nature of discussions of strategy, plans or intentions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ materially from those in the forward looking statements as a result of various factors.•Analysts and investors are cautioned not to place undue reliance on those forward looking statements which speak only as of the date of this presentation.

Safe Harbor Clause Forward Looking Statements