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

Conference Call &Conference Call &

WebcastWebcast

11stst Quarter 2002 Quarter 2002

7.28.1 7.8

8.89.7

10.511.8

12.8

14.8

18.1

14.8

17.7 18.0

0

5

10

15

20

Jul-98 1998 1999 2000 2001 1Q02 2002E

Platform GrowthPlatform Growth

Slide 1

Lines in Service

Lines Installed(in million)

20,0

1998

Utilization Rate (%)

89%

92% 92%

82%84%

?

1999 2000 2001 2002E1Q02

Net Revenue (R$ Million)Net Revenue (R$ Million)

Slide 2

1,8241,952

2,117 2,234 2,3062,438

2,6262,733 2,785

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02

21% yoy

228249

277 278 280 286 310344

369

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02

Long Distance - Revenue (R$ Million)Long Distance - Revenue (R$ Million)

Slide 3

32% yoy

169 169 172160

174

207

189

216

237

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02

Data Transmission - Revenue (R$ Million)Data Transmission - Revenue (R$ Million)

Slide 4

36% yoy

293 294335

356 348382 390 376

426

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02

Network Usage - Revenue (R$ Million)Network Usage - Revenue (R$ Million)

Slide 5

22% yoy

1,024 1,069

1,292 1,315 1,3481,407

1,676 1,726 1,676

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02

Local Service - Revenue (R$ Million)Local Service - Revenue (R$ Million)

Slide 6

24% yoy

-3

12

21

42

28

-2

13

20

41

28

16

8

23

31

22

8

13

19

31

29

-913

22

43

31

1Q01 2Q01 3Q01 4Q01 1Q02

Other G&A

Selling Interconnection Cost

Cost of Services

Operating Expenses (R$ Million)Operating Expenses (R$ Million)

Slide 7

%

1,2301,399

2,197

1,838

1,372

Costs and Expenses (R$ Million) Costs and Expenses (R$ Million)

Slide 8

* Excluding Bad Debt Provisions

Cost and Expenses 1Q02 4Q01 1Q01

Cost of Services 426 524 340

Interconnection 587 572 520

Selling Expenses* 91 162 167

Bad Debt Provisions 210 193 87

Administrative Expenses 173 228 146

Other Expenses (Rev) net (116) 160 (30)

Total (R$MM) 1,372 1,838 1,230

Employee Productivity (Wireline) Employee Productivity (Wireline)

Slide 9

405.6457.5

503.3560.4 607.8 618.0 613.5

984.1

1,245.4

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02

Full-Time EmployeesFull-Time Employees

Slide 10

Employees 1Q02 4Q01 1Q01

TMAR 10,483 10,663 18,106

Connect 979 3,417 1,657

HLD+Other Subsidiaries 424 976 866

Wireline Total 11,886 15,056 20,629

Oi 570 434 -

Contax 10,397 11,981 8,828

Total 22,853 27,471 29,457

EBITDAEBITDA

Slide 11

829

965

1,149 1,090

895

1,413

429

1,0391,077

50.7%46.7%45.4%49.4%

54.3%

48.8%

42.6%

16.3%

32.8%

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02

EBITDA (R$ mn) EBITDA Margin (%)

R$ mn 1999 2000 2001 1Q02

Suppliers 999 1,358 2,199 (551) 1,648 Other Accounts Payable 145 230 796 (631) 165 Total 1,144 1,589 2,995 (1,182) 1,813

Loans and Financing 983 2,831 8,920 441 9,361 Cash (696) (2,093) (1,234) 190 (1,044) Total Net Debt 287 738 7,686 631 8,317

Total 1,432 2,327 10,681 (550) 10,131

Changes in Debt PositionChanges in Debt Position

Slide 12

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

CAPEX (R$ Billion)CAPEX (R$ Billion)

Slide 13

1.82.1

3.23.0

0.4

1Q01 2Q01 3Q01 4Q01 1Q02

Wireline Business Wireless Business

TNL - PCS TNL - PCS (´´Oi´´) (´´Oi´´) – Current Status– Current Status

Ready to launch

10 Metropolitans Areas - 200 cities

Main suppliers: Nokia, Alcatel, Siemens

Technology GSM/GPRS

Operating AgreementsInfrastructure Co-sitingInterconnection

Roaming International

Operating SynergiesBilling & CreditInfrastructure & BackOfficeData Base

Target (12 months) 500.000 Subs

Slide 14

Distribution channel = over 1,000 point of sales

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 Relations

Rua Humberto de Campos, 425 / 8º andar

Leblon

Rio de Janeiro -RJ

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

Fax: (55 21) 3131-1155

E-mail: invest@telemar.com.br

Visit our new website: http://www.telemar.com.br/ri

Slide 15