Vivo Participacoes S.A. (TCP)

Telesp Celular Participações S.A., through its susbsidiaries, provides cellular telecommunications services using both digital and analog technologies in Brazil. It provides voice service and ancillary services, including voicemail and voicemail notification, call forwarding, three-way calling, caller identification, short messaging, limitation on the number of used minutes, and cellular chat room. The company’s data service includes wireless application protocol (WAP) service through which its clients can access WAP sites and portals. In addition, it offers direct access to the Internet through either PCMCIA cards designed to connect compatible personal digital assistants and laptops, or cellular phones by cable connection that offers to corporate subscribers secure access to their intranet and office resources. The company also offers roaming services, through agreements with local cellular service providers throughout Brazil and other countries. In addition, the company offers multimedia message services; and mobile execution environment that enable the handset to download applications and execute them at the mobile and a user interface with icons to identify the services, such as voice mail, downloads, and text messaging. The company is based in Sao Paulo, Brazil. Telesp Celular Participações S.A. is a subsidiary of Brasilcel N.V.

For the fiscal year ended 31 December 2005, Telesp Celular Participaciones S.A.'s total revenues before U.S. GAAP adjustment increased 2% to R$7.47B. Net loss totaled R$909.2M, up from R$490.1M. Revenues reflect an increase in the number of subscribers, higher prepaid telephone calls and higher service revenues. Increase in net loss reflects an increase in cost of services, selling expense as well as other miscellaneous expenditures.