João CoxCEO – Telemig Celular & Amazônia Celular

CFO – Telemig Celular Part. & Tele Norte Celular Part.

Telecommunications Panel

Five Years After Privatization

Agenda

• Our Vision

• Our Beliefs

• Milestones

• Awards/Recognition in 2003

• Market Share

• Our Results

Our Vision

• To have superior brand recognition

• To attract investor interest on a global scale

• To have employees that feel rewarded and proud

Our Beliefs

• We sell entertainment, content, relationship and communications

• Our business is not restricted to our client base

• Relationship is far more important than acquisition

• Creativity, competence and focus can overcome scale

• Entrepreneurship and people make the difference

• Social responsibility is imperative

• Profitability comes with management competence

Milestones

•2003: Launch of the most comprehensive relationship program•2002: 1st to bill calls per second in Brazil

1st to launch a voice portal in its area

1st to launch hybrid plan in Brazil•2001: 1st to commercialize services using LBS technology in LA

1st to launch national roaming for prepaid in its area•2000: 1st to place a WAP call on a TDMA network in LA

1st to segment prepaid plans in Brazil

1st to sell prepaid credits virtually in Brazil•1999: 1st to offer a single tariff for intra concession calls in Brazil

1st to launch SMS in its area

Awards/Recognition in 2003• “Best Customer Care Center” in Brazil – Company of the Year (TCN)• “Best Customer Care Center” in the Wireless Sector in Brazil (TMB/TCN)

- Consumidor Moderno Magazine• Top 100 Companies to Work for in Brazil (TMB)• Top 40 Companies for Women to Work for in Brazil (TMB/TCN)

- Exame Magazine• Short-listed as one of the three best companies in Brazil for the categories of “Customer Respect” and “Grand Prix for Social Value” (TMB)

- Valor Econômico• #3 in the “Corporate Governance Ranking” for Brazilian companies (TMB)

- Euromoney Magazine• Short-listed for two categories for the Investor Relations Magazine Latin America Award - “Best Overall Investor Relations” and “Best IRO” - Small Cap (TMB)

- Investor Relations Magazine• “Entrepreneurial Leader for the Telecommunications Sector” for the Forum of Entrepreneurial Leadership (TMB,TCN)

- Gazeta Mercantil

Market Share (3Q03)

Sour

ce: C

ompa

ny’s

estim

ates

and

Ban

co S

anta

nder

.

2nd32%

3rd13%

TCN

46%

4th9%

Area 8

2nd25%

3rd15%

TMB60%

Area 4

1st45%

2nd22%

3rd18%

5th7%

TMB/TCN8%

Brazil

Financial & Operational ResultsF I V E Y E A R S A F T E R P R I V A T I Z A T I O N

1998-2003: Highlights

• Good customer base growth rates

• Solid operational indicators

• Reduction of bad debt

• Good cash generation

• Reduction of net debt

• Strengthening of Amazônia Celular´s brand

219 266 348 306 255 275

78

408603 686 693

1998 1999 2000 2001 2002 2003-YTD*

Postpaid Prepaid

968

344

909941

756

Client Base (clients000s)

• 343% increase in the client base since 1998

• CAGR (1998:2003-YTD) of 35%

749k net additions

* YTD

info

rmat

ion

up to

Sep

tem

ber 2

003.

219

81228

3825

511.8%

2.9%

16.1%

10.3%

7.2%

11.5%

1998 1999 2000 2001 2002 LTM*

Bad Debt % of net service revenues

238273

344

448404 433

1998 1999 2000 2001 2002 LTM*

Service Revenues and Bad Debt (R$ millions)

• CAGR (1998:LTM) of 13% • CAGR (1998:LTM) of –27%

Service Revenues Bad Debt

* LTM

: Las

t twe

lve m

onth

s up

to

Sept

embe

r 200

3.

(BR GAAP)

EBITDA and Net Result (R$ millions)

• Change in pattern

EBITDA Net Result

25

(24)

1

40

(7)

11

1998 1999 2000 2001 2002 LTM*

102 94 103135 145148

33.0%29.8%

34.4%

43.0%

33.4% 33.6%

1998 1999 2000 2001 2002 LTM*

EBITDA EBITDA Margin

• CAGR (1998:LTM) of 7%* LTM

: Las

t twe

lve m

onth

s up

to

Sept

embe

r 200

3.

(BR GAAP)

Net Debt and FCF (R$ millions)

Net Debt Free Cash Flow

103120

42

(90)(101)(55)

1998 1999 2000 2001 2002 LTM*

57

297 266184

331

(39)

1998 1999 2000 2001 2002 2003-YTD*

• Positive cash generation• Reducing net debt

* YTD

and

LTM

(las

t twe

lve m

onth

s) u

p to

Sep

tem

ber 2

003.

(BR GAAP)

Summary (1998-2003)Client Base

(R$ millions)

Service Revenues EBITDA

Net Result Net Debt Free Cash Flow

219 266 348 306 255 275

78

408603 686 693

1998 1999 2000 2001 2002 2003-YTD*

Postpaid Prepaid

968

344

909 941

756

238273

344

448404 433

1998 1999 2000 2001 2002 LTM*

102 94 103135 145148

33.0%29.8%

34.4%

43.0%

33.4% 33.6%

1998 1999 2000 2001 2002 LTM*

EBITDA EBITDA Margin

25

(24)

1

40

(7)

11

1998 1999 2000 2001 2002 LTM*

57

297 266184

331

(39)

1998 1999 2000 2001 2002 2003-YTD*

103120

42

(90)(101)(55)

1998 1999 2000 2001 2002 LTM*

CAGR of 35% CAGR of 13% CAGR of 7%

Improving trends on net results Reducing net debt CAGR of 19%

* YTD

and

LTM

(las

t twe

lve m

onth

s) u

p to

Sep

tem

ber 2

003.

Financial & Operational ResultsF I V E Y E A R S A F T E R P R I V A T I Z A T I O N

1998-2003: Highlights

• Strong customer base growth rates

• Solid operational indicators

• Reduction of bad debt

• Strong cash generation

• Negative net debt

• Consolidation of Telemig Celular´s market leadership position

Client Base (clients000s)

• 384% increase in the client base since 1998

• CAGR (1998:2003-YTD) of 37%

1,722k net additions

* YTD

info

rmat

ion

up to

Sep

tem

ber 2

003.

448 560

217

448 560 719 746 657 680

217

522924

1,490 1,266

1998 1999 2000 2001 2002 2003Ytd

Postpaid Prepaid

2,170

448

776

1,6701,923

1,241

Service Revenues and Bad Debt (R$ millions)

• CAGR (1998:LTM) of 17% • CAGR (1998:LTM) of –32%

Service Revenues Bad Debt

* LTM

: Las

t twe

lve m

onth

s up

to

Sept

embe

r 200

3.

440 444607

794 870 958

1998 1999 2000 2001 2002 LTM*

2822

105

22 18 15

3.6%3.6%5.0%

23.9%

2.1% 1.6%

1998 1999 2000 2001 2002 LTM*

Bad Debt % of net service revenues

(BR GAAP)

EBITDA and Net Income (R$ millions)

• CAGR (1998:LTM) of 77%

EBITDA Net Income

• CAGR (1998:LTM) of 34%* LTM

: Las

t twe

lve m

onth

s up

to

Sept

embe

r 200

3.

105171

245

394454

370

46.6%

40.3%38.6%

23.8%

45.2%47.4%

1998 1999 2000 2001 2002 LTM*

EBITDA EBITDA Margin

3968

179

10

90

15

1998 1999 2000 2001 2002 LTM*

(BR GAAP)

Net Debt and FCF (R$ millions)

Net Debt Free Cash Flow

• Strong positive cash generation• Negative net debt

* YTD

and

LTM

(las

t twe

lve m

onth

s) u

p to

Sep

tem

ber 2

003.

110 106

(117)

198 2574

1998 1999 2000 2001 2002 2003-YTD*

369

31

(118)(43)21

306

1998 1999 2000 2001 2002 LTM*

(BR GAAP)

Summary (1998-2003)Client Base

(R$ millions)

Service Revenues EBITDA

Net Income Net Debt Free Cash Flow

CAGR of 37% CAGR of 17% CAGR of 34%

CAGR of 77% Negative net debt CAGR of 78%

* YTD

and

LTM

(las

t twe

lve m

onth

s) u

p to

Sep

tem

ber 2

003.

440 444607

794 870 958

1998 1999 2000 2001 2002 LTM*

105171

245

394454

370

46.6%

40.3%38.6%

23.8%

45.2%47.4%

1998 1999 2000 2001 2002 LTM*

EBITDA EBITDA Margin

3968

179

10

90

15

1998 1999 2000 2001 2002 LTM*

110 106

(117)

198 2574

1998 1999 2000 2001 2002 2003-YTD*

369

31

(118)(43)21

306

1998 1999 2000 2001 2002 LTM*

YTD*Postpaid Prepaid

2,170

1,6701,923

448 560 719 746 657 680

217

522924

1,2661,490

1998 1999 2000 2001 2002 2003-

776

1,241

448

Contact Information

Additional information can be found at:www.telemigholding.com.br

www.telenorteholding.com.br

João Cox CEO – Telemig Celular & Amazônia CelularCFO – Telemig Celular Part. & Tele Norte Celular Part.E-mail: Jcox@telemigcelular.com.br

Ricardo Perpetuo CFO – Telemig Celular & Amazônia CelularE-mail: Ricardo.perpetuo@telemigcelular.com.br

Leonardo Dias Investor Relations ManagerE-mail: Ldias@telepart.com.br

Phone: 55-61-429-5673Fax: 55-61-429-5626

This presentation contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include those resulting from the short history of the Company's operations as an independent, private-sector, entity and the introduction of competition to the Brazilian telecommunications sector, as well as those relating to the cost and availability of financing, the performance of the Brazilian economy generally, the levels of exchange rates between Brazilian and foreign currencies and the Federal Government's telecommunications policy. Accordingly, the actual results of operations of the Company may be different from the Company's current expectations, and the reader should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.

Disclaimer