1

July 21, 2006

Vivo Participações S.A.

2Q06 Results

2

Executive Summary

• Stabilize Market Share • Promote Revenue GrowthChallenges

Operational Highlight

Increase in the post-paid outgoing revenue of 15.3% in SP and 21.2% in RJ/ESIncrease in the post-paid outgoing ARPU of 4% in SP and 9% in RJ/ESDecrease in the inbound traffic with migration F-M to M-M/ Decrease in interconnection revenueInactive clients write-off with effects in churn but without effects in revenues

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Introduction

Write-off of inactive clientsImpact in ChurnNo effect on revenue

Client Base

Reduction due to non higher provisionsNormalized value: R$467.8 MM and 18.0% margin

EBITDA

Outgoing revenues grew in relation to 2Q05Pressure on prices with strong competition

Revenues

Competitive marketMother's Day/ Valentine's DayCommercial Campaigns

Strong Commercial Activity

Impact of R$ 161.5 MM QoQNormalized PDD of R$177.2 MM or 4.7% of gross revenue

Provision for Bad Debt(PDD)

Manageable volume and reduction of financial costsNet Debt

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Launching of GSM’s network (overlay)Competition and evolution in 3GMaintenance of Leadership in 850MHz and better networkCosts ReductionNo impact of CapEx

Medium Term

Combat Fraud and CloningConsolidation/ Rationalization of IT/ISNational CoverageDedicated attention to Corporate SegmentCorporate Restructuring

Short Term

Quality : 98% of Anatel’s goals achievedNetwork completely authenticated78% of client base centralized in a single billing system57% of client base centralized on prepaid platforms72% of client base centralized at the front office

Advances

Introduction

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22.935 23.257 24.377

5.511 5.2685.761

2Q05 2Q06 1Q06

Prepaid Post-paid

Client Base

• Retention and loyalty programs;

• Focus on the value clients;

• More than 78% of the clients base integrated to the unified IT/IS platforms.

+1.4%

28,446 28,525

+ 0.3%

30,138

- 5.4%

- 4.6%

-4.4% - 8.6%

30,348 total without write-off of clients

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4,806

3,231

327

4,054

2,795

104

3,907

2,118

91

Vivo C1 C2

Retail Third Party Own Stores

8,3646,953

6,116

Leadership in Distribution & CoverageOnly Operator in 3G

2,256

1,759 1,660

Vivo C1 C2

Municipalities Covered

Channels of distribution Coverage

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Vivo offers the recharge value in bonus for local calls from Vivo to Vivo to speak in double.

Change handsets using the program based on points.

Program based on PointsProgram based on Points

2Q06 Main Marketing Actions

Recharge in DoubleRecharge in Double

Mother’s DayMother’s Day

Buy a handset and get the second for free.

Talk more Vivo PrepaidTalk more Vivo Prepaid

Client speaks for free with any Vivo or fixed phone after the 3rd minute

Soccer World Cup 2006Soccer World Cup 2006

When buying or changing handset, the client speaks for how long he/she wants for only R$0.30/min in local calls or long distance calls from Vivo to Vivo

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Loyalty and RetentionFocus Value Clients

Incentive to retain Prepaid client through discounts

in the exchange for a new handset keeping the

number

LOYALTYSe

gmen

ted

Ch

ange

sfo

r

Pre

paid

Pro

gram

ofP

oin

ts Points are added and can be used when handset is

exchanged. Balance of points is sent by SMS in a

monthly basis.

Ove

rlay

CD

MA

Incentive to change TDMA handsets for CDMA

based on the program of points.

Enables value clients to acquire the Globalmoto

handset at differentiated prices.

Glo

balm

oto

Dir

ect

mai

l

Segm

ente

dO

ffer

Mig

rati

onP

re-P

ost

Upg

rade

of

Pla

ns

and

Pac

kage

s

Retention of clients through segmented offers such as “Right Planning” and “Vivo Smart”

Using base segmentation, to inform to prepaid clients the advantages of being a Post-Paid.

Maxime value-for-money to client and increase customer satisfaction

RETENTION

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Net Revenue

Right Planning;

Campaigns to encourage the intra network traffic;

Data transmission ;

Internet access cards, PDA’s and SMS.

Increase in the outgoing revenues;

Drop in the inbound fixed-to-mobile traffic.

519 414 315

2Q05 2Q06 1Q06Handsets

-20.2% +31.4%

Service Revenue Handset Revenue

136 157 143

1,059 868 930

1,1651,159 1,189

2Q05 2Q06 1Q06

Other Services Network Usage Monthly Subscription

- 7.5%

2,360 2,2622,184

- 3.4%

R$ million

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

Data Revenue Evolution

2Q05

1Q06

2Q06

+14%6.1%

7.0%

7.7%

2Q05 1Q06 2Q06

21%

65%

14%

WAP SMS ZAP + others

2Q05

35%

18%

65%

17%

WAP SMS ZAP + others

2Q0635%

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15.9 14.4 15.0

12.7

9.710.4

2Q05 2Q06 1Q06

-15.7% -5.1%

ARPU Blended Evolution2Q05 vs. 2Q06 2Q06 vs. 1Q06

24.1 25.4

15,5 17,3

Inbound

Outgoing

28.6

12

52.7 50.1 53.2

25.3

20.821.6

2Q05 2Q06 1Q06

- 9.1% - 5.1%

ARPU Post-Paid Evolution

70.974.7

Inbound

Outgoing

78.0

2Q05 vs. 2Q06 2Q06 vs. 1Q06

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6.3 6.0 5.6

9.2

6.8 7.4

2Q05 2Q06 1Q06

-17.4% -0.8%

ARPU Prepaid Evolution

12.8 12.9

Inbound

Outgoing

15.5

2Q05 vs. 2Q06 2Q06 vs. 1Q06

14

3631 31

43

35 37

2Q05 2Q06 1Q06

-16.5% -2.9%

MOU Blended Evolution

6668

Inbound

Outgoing

79

2Q05 vs. 2Q06 2Q06 vs. 1Q06

15

127 127 123

82 73 76

2Q05 2Q06 1Q06

-4.3% +0.5%

MOU Post-paid Evolution

200 199

Inbound

Outgoing

209

2Q05 vs. 2Q06 2Q06 vs. 1Q06

16

149 9

32

25 26

2Q05 2Q06 1Q06

- 26.1% -2.9%

MOU Prepaid Evolution

34 35

15,5 17,3

Inbound

Outgoing

46

2Q05 vs. 2Q06 2Q06 vs. 1Q06

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*SAC Blended

SAC*Strategy focused on Acquisition of Value Clients

125128

171

2Q05 2Q06 1Q06

-25.1% 2.4%

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R$ million

Operating Costs*Growth with Competitive Activity

146

1002

547

155

418

129

711

433

156

434

127

809

830

152

382

General &administrative

expenses

Sellingexpenses

Cost ofhandsets

Personnel

Cost ofservices rendered

2Q051Q062Q06

PDD

*Depreciation is not included.

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2Q05 1Q06 2Q06

Others

Insolvency Clients

PDD* Evolution

Structure and Process Initiatives :

Authentication of the Analog network and TDMA third party network already concluded;

Interception of calls posted by Vivo clients in roaming, is fully implemented (“screening” of clients);

“Credit Scoring” (already implemented);

Strong billing actions;

“Management of Consumption”.

136.6161.0

338.7R$ million

PDD extraordinary in the 2Q06.

161.5

*PDD = Provision for Bad Debt

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125.562.5

- 299.9

2Q05 1Q06 2Q06

EBITDA EBIT

717.1

599,3

306.3

20.8%

27.8%

11.8%

2Q05 1Q06 2Q06

EBITDA EBITDA Normalized

EBITDA Margin

467.8

18.0%

EBITDA Normalized

EBITDA and EBITDA Margin

R$ Million

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4,3344,464

8,4167,985

1Q06 2Q06

Net Debt

Shareholder's Equity

Gross Debt, Net Debt and GearingCovered Short Term Debt

1Q06 2Q06

Short Term Long Term

4,686.45,482.6

60%

40%

60%

40%

2Q06

R$ million

0.53 0.54

1Q06

1Q06 2Q06

4,464.4

4,333.9

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

Gearing

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R$ million

2Q05 2Q06 1Q06

-13.3% + 14.7%

(186.3)(213.6)

(246.7)

Net Financial ResultReduction in Financial Expenses

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Capex

R$ million

13%

11%

14%

2Q05 1Q06 2Q06

% Capex/Net Rev.

249.1

92.1139.5

53.7

85.9

87.6

116.2

103.3

108.6

2Q05 1Q06 2Q06

Network Technology Others

419.0

281.3 335.7Total Capex

633.8

231.6

120.3

173.5

200.1

211.9

Accumulated 2005 Accumulated 2006

Network Technology Others

12%

18%

Accumulated 2005 Accumulated 2006

Main Investments

954.2

617.0

Network Quality/Capacity;Centralized systems and platforms;Corporate segment: handsets and technology.

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4.3%3.6% 3.3%

3.8%

9.3%

12.1%

14.0%15.0%

Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Apr-06 May-06 Jun-06

Anatel StandardsReduction in Indicators of Non-Compliance

Best Performance

Source: ANATEL (June/2006)

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ACTIONS

Vivo has continued with its internal voluntary program with several actions of support to visually disabled person:

Opening of Vivo Voluntary Space, located at the company’s building in Rio de Janeiro, for recording of spoken books.

Three courses were provided for training Vivo volunteers –audiodescription, revisers and readers.

Production of approximately 11,000 pages of Braile books, only in June, which work was carried out by approximately 600 volunteers of the company.

VIVO Social Responsibility

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GSM Overlay

Construction of a GSM/EDGE network capable of upgrade to W-CDMA to be added to the network, which will continue in full operation.

ProjectWe will use the frequency of 850MHz and CDMA with EV-DO.

Frequency• Capex to the overlay of GSM will be approximately R$ 1,080MM;• Capex already included in the Company’s plan with no impact by the balance between investments in CDMA and GSM;

Capex

• Future coverage also in GSM;• Digital roaming facilitated by present contracts;• Lower GSM’s handset cost;• Gain of scale;• Evolution to UMTS;• High use of the existing infrastructure;• Reduction in the price of GSM equipments;• Recurrent Economy in Capex.

Reasons• Handset prices;• Short term pay-back;• Improvement in the competitive positioning;• Experience from TEM and PT in other markets.

Advantages Competitive Differentials• Higher offer of handsets and services to the market;

• Only Brazilian operator to offer both technologies CDMA and GSM;

• Its offers services that fits all market segments.

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Final Remarks

• Search for Nationwide coverage;• 100% Digital;•1xRTT in 1,825 municipalities.Coverage

• Unified IT and SI platforms;• 75% of clients already integrated;• Simplified control;• Increased Reliability and Control.

Systems

• Sustainable effort to detect and control;• Authentication of prepaid and post-paid customer base;• System’s Prevention;• Reduction of PDD.

Fraud and Cloning

• Structure Simplification (reduction of 14 operator to 1); • Synergies;• Cost control;• Transparency.

Corporate Restructuring

• 3G’s Competitively;• Easier Roaming;• Lower handsets’ costs.GSM

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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