TELE NORTE LESTETELE NORTE LESTE PARTICIPAÇÕES S.A.PARTICIPAÇÕES S.A.

Conference Call 3Q02Conference Call 3Q02

I.I. Events of the quarterEvents of the quarter

II.II. Financial ResultsFinancial Results

III.III. Debt Profile/ HedgeDebt Profile/ Hedge Position Position

IV.IV. OiOi

V.V. OutlookOutlook

VI.VI. Q&A SessionQ&A Session

AgendaAgenda

Slide 2

1.1. Oi’s Operational LaunchingOi’s Operational Launching

2.2. Domestic Long Distance ServiceDomestic Long Distance Service

3.3. International Long Distance Service International Long Distance Service

4.4. Acquisition process of Pegasus Acquisition process of Pegasus

5.5. Operating in other regionsOperating in other regions

Anatel Targets: Reaping the BenefitsAnatel Targets: Reaping the Benefits

Slide 3

Results of the New ServicesResults of the New Services

Slide 4

DLD (Interregional):

R$ 18 million in 60 days!

ILD (International):

R$ 2 million in 90 days!

500,000 clientes in just 3 months!

Coverage

• 2,300 operational sites

• 14 states / 396 cities covered

• Domestic & International Roaming

Economic EnvironmentEconomic Environment

Slide 5

Exchange Rate (USD)

Dec-01

Jan-0

2

Feb-02

Mar-02

Apr-02

May-02

Jun-0

2Ju

l-02

Aug-02

Sep-02

R$ 2.35

R$ 2.84

R$ 3.89

EMBI Brazil ( JP Morgan)

Dec-01

Jan-0

2

Feb-02

Mar-02

Apr-02

May-02

Jun-0

2Ju

l-02

Aug-02

Sep-02

870 points

1,527 points

2,396 points

Revenue Growth – Net Revenues (R$ million)Revenue Growth – Net Revenues (R$ million)

Slide 6

Main Drivers:

Local Services

LD Services

Wireless Services (Oi)

+17%

2,626

3,083

3Q01/ 3Q02 9M01/ 9M02

7,370

8,648

Gross Revenue Growth - 3Q02/ 3Q01Gross Revenue Growth - 3Q02/ 3Q01Service Breakdown

Slide 7

37%

4%

19%

50%

14%

17%

Local Long Distance Pay Phone Data Fixed

Mobile Network Usage

Average = 18%

Cost / Expenses Performance (R$ million)Cost / Expenses Performance (R$ million)

Slide 8

223 202

669

596

380

126

Personnel Interconnection Bad Debt

3Q01

3Q02

Ebitda (R$ Million) Ebitda (R$ Million)

Slide 9

437

1,285

2,559

4,030

3Q01/ 3Q02 9M01/ 9M02

42%

Ebitda Margin

17%

33%

51% 48%

3Q01 4Q01 1Q02 2Q02 3Q02

49%

Consolidated

TMAR

Financial ResultsFinancial Results

Slide 10

3Q02 2Q02

Financial Revenue 163 136

Interest on Loans/ Dividends 236 187 Monetary & Exchange Variations 556 333

Premiun Amortizations, PIS, Confins 94 41 Others 3 7 Financial Expenses 1.021 636

Net Financial Result 859 500

Atualizations (CPMF, JCP, Div,Contingencies) 133 68

Exchange Loss (Mn):Monetary and Exchange Var.: R$ 556

Net Interest Expenses: R$ (228)

Dollar Based Financial Rev.: R$ (93)

TOTAL: R$ 235

16

235= 6.8%

Cash Effect

Accounting Effect

Capex (R$ Billion)Capex (R$ Billion)

Slide 11

3,165

509

7,058

1,334

3Q01/ 3Q02 9M01/ 9M02

Capex/ Net Revenue

16%14%16%

110%120%

85%79%

1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02

3Q02 Consolidated Net Result3Q02 Consolidated Net ResultMain EffectsMain Effects

Slide 12

(R$ 235 Mn)F/X Losses

Net Loss (R$ 382 Mn)

(R$ 297 Mn)Oi’s Net Loss

Debt Profile – Net DebtDebt Profile – Net Debt(R$ Million)(R$ Million)

Slide 13

2,091

3,997

7,0367,702

8,3179,128 9,006

1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02

Debt ProfileDebt Profile

Slide 14

Debt Currency Breakdown

46%

11%

10%

33%

Local

US$

Yen (Swap to US$)

CY Basket

52%

0.5%

15%

20%

13%IGPM

CDI

TJLP

Fixed Reais Rate

Libor

Interest Index

Currency % CostUS$ 46 Libor + 5% p.aYen 11 1.7% p.a

Basket 10 12.3% p.aReal 33 16.0% p.a

Cost of Debt

Debt Debt Profile - Profile - MaturityMaturity

Slide 15

4%

11%

18%21%

29%

18%

2002 2003 2004 2005 2006 2007onwards

Debt ProfileDebt Profile

Slide 16

Short Term Swap/

Swap to MaturityUSD MM

67.6%

13.1%13.8%5.5%

Short Term Swap

Swap to Maturity

Unhedged Position

Dolar Linked

142%103% 75%

72% 50%

10

110

210

310

410

510

610

710

810

910

2003 2004 2005 2006 2007 onward

Current Hedge Book Hedging Demand

Hedge Structure

OiOi

Slide 17

Slide 18

OutlookOutlook

Q&A SessionQ&A Session

Slide 19

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” STATEMENTSAFE HARBOR” STATEMENT

Investor RelationsRua Humberto de Campos, 425 / 8º andar

Leblon Rio de Janeiro -RJ

Phone: ( 55 21) 3131-1314/1313/1315Fax: (55 21) 3131-1155

E-mail: invest@telemar.com.brVisit our new website: http://www.telemar.com.br/ri