1. TIM PARTICIPAES S.A. Citis 17th Annual Latin America Conference March 2009 0

2. TIM PARTICIPAES S.A. | Investor Relations 4Q08 ResultsMacro Scenario & TIMs FundamentalsTIMs Re-launch PlanHistorical Data 1 3. TIM PARTICIPAES S.A. | Investor RelationsBreakdown: subscribers base and revenue Subscriber Base Net RevenueMillion linesR$ Million35.2 36.4+16% 3,54432.5 33.8 3,3763,1863,358 31.3 YoY2,99327.028.429.8+22%3,100 3,0663,223+4.0% 24.5 25.8 2,838 2,971 YoY YoY6.86.8 6.8 6.8 6.6 -3%276155 215 292321+16.5% 4Q07 1Q08 2Q083Q08 4Q08 YoY 4Q07 1Q082Q083Q084Q08 YoY Post-paid Pre-paid+5,3% +4,1% +6,1% +5,0% YoY% Pos / 21.7 20.820.219.4 18.1 Total Net Service Revenue Net Handsets Revenue Mix change due to pre-paid growth: Revenue growth at 5.1% in 2008: TIM Customer Base grew to 36.4 Mln lines mainly onLower than expected post-paid growth, high churn onpre-paid (+22%)post-paid (10% in 4Q08)Post-paid lines down to 6.6 Mln (-200K lines YoY),MOU reduction in 4Q08 due to of lower push onrepresenting 18.1% of total customer basepromotions 2 4. TIM PARTICIPAES S.A. | Investor Relations Rigorous financial discipline EBITDA %: Meeting companys guidance ARPM Increase R$ MillionR$ Cent.890 928 800 YoY YoY4.2%7.2% QoQ0.320.35 QoQ 0.29 16.0%18.0% 4Q07 3Q08 4Q084Q07 3Q08 4Q08 Margin26.4%23.8%26.2% SAC ControlBad Debt Control R$R$ Million YoY YoY143 131 -12%98 33.5%110 110 96 QoQ QoQ-13% -8.9% 4Q073Q08 4Q08 4Q073Q08 4Q08 FY 08SAC /% Serv.ARPU3.2x3.7x3.2x 3.2% 4.7% 4.1%6.2%revenues 3 5. TIM PARTICIPAES S.A. | Investor Relations EBITDA and bottom line performanceEBITDA YoY performance* From EBITDA to bottom lineR$ Million R$ Million EBITDA Depreciation Net Financial Taxes andEBITNet Income 4Q08AmortizationExpenses Others 45.6 (61.4)11.8 (65.9)(32.7)16.7 123.0 Increase due to Growth fueled Higher handsetLargely higherby higher cost commercial sale volume impacted by (622.2)of debt and 3G (+14% YoY) strong credit NPVactivities, Tax loss carry collection effort forwardadvertising exp. and in 4Q07927.6R$160.2Mn890.4commissions927.6(141.4)135.6305.4 299.6 EBITDAService Handsets Selling NetworkCOGSBad Debt*Other EBITDA4Q07 Revenue Revenue Expenses ExpensesExpenses 4Q08ChangeChange +4.0% +16.5% +9.5%-1.1%+17.6% +33.5% -5.5% +4.2% +3.3% +5.9% +153.0%n.m.+65.8%YoY YoY * Other Expenses include: G&A, Personnel and Net Other Operating Expenses/Revenues4 6. TIM PARTICIPAES S.A. | Investor Relations 4Q08 ResultsMacro Scenario & TIMs FundamentalsTIMs Re-launch PlanHistorical Data 5 7. TIM PARTICIPAES S.A. | Investor Relations Brazilian competitive landscape TIMTelefonica/Vivo (1)Embratel /Claro Oi (2)/Brasil Telecom Player FootprintNational fixed Long distance license acquired inincumbentmay / 07 24%30%26% 20% Market share (4)Mobile(36.4 MM) (44.9 MM)(38.7 MM)(30.0 MM)Fixed~0.5%~30% / ~90%(3)~13%~55% / ~85%(3)Broadband~5% ~26% ~22% ~40% (1) Including Telemig CelularMobile + Fixed Incumbent(2) Including Amazonia Celular(3) Considering its regional presenceMobile(4) 4Q08 figures6Source: company reports and Anatel 8. TIM PARTICIPAES S.A. | Investor RelationsA large and competitive market Customer BaseService RevenueMillion lines Billion R$25% 14%Double-digit 12115138 44 market growth2007 200820072008Penetration 64%78%Gross AddsChurn Million linesMillion lines 35%32% Churn market...75 56 46 352007 2008 2007 2008Churn 32% 34%TIM Player 1 Player 2 R$, R$/min R$, R$/min R$, R$/minARPU suffering ARPMCompetition increases with 0.39Mobile Number Portability in strong0.360.31-13% 0.34-15% 0.35-23% 2009: competitive0.27 17% of population covered in34.429.7 -13% 30.329.6 -3%27.3 -7% pressure25.5Sep-08 100% by Mar-09 20072008 2007 20082007 2008 7 9. TIM PARTICIPAES S.A. | Investor Relations TIMs strong fundamentals1 Network: leadership in coverage and quality voice (coverage and quality) data (Edge/ 3G) 2 High-Value Customer Base (ARPU ~30R$) withOperating as a proven innovation attitude (VAS 10.8% Gross Service Pure Mobile Revenue in 4Q08) company, with solidfundamentals 3 Unique Pure Mobile convergence offering in line with our DNA TIM Web: strong growth (+2.5x of base YoY) TIM Fixo: high satisfaction among early adopters 8 10. TIM PARTICIPAES S.A. | Investor Relations 1 Network: leadership in voice and data coverage Voice Data Population covered by GSM* Largest data network = Edge / UMTS93%Player 2 90% 3G Data Only high quality Right on spot Player 388%Player 488% Native 3.5G (HSDPA)high performanceRecovery of Service Quality Congestion % cells with Grade of Service > 2%10 59% of high-value customer base covered by 3G 8 (Jan-09) 78% by Dec-09 6420Jan Feb March April May June July Aug Sept Oct Nov Dec Jan Jan W1 W2 * Urban population covered (Jan-09)9 11. TIM PARTICIPAES S.A. | Investor Relations2High-value customer base with proven innovation attitude ARPU VAS / Gross Service Revenue Data Revenue GrowthMonthly ARPU, R$% Gross Service Revenue4Q07 vs. 4Q0834.5 10.8% 29.5 29.8 29.7 29.99.8% SMS/ 4% 9.7%MMS9.0%8.4%38% VAS-i4Q07 1Q08 2Q08 3Q08 4Q08 4Q07 1Q08 2Q08 3Q08 4Q08 Reversal of ARPU ... with push in Increase in VAS... dilutiondata and content10 12. TIM PARTICIPAES S.A. | Investor Relations3Unique Pure Mobile convergence offeringMobile Broadband: Strong growth Million (Mn)TIM Web ARPU grew > 50% since 3G launch (May08)+70% The fastest mobile broadband offer in the market: up to 7.2~0,5 Mbps and robust 3G backhaul ~0,3 Unattended ADSL demand: Over 50% of TIM Web users has~0,2 a fixed location2007 1H08 2008 Over 70% of TIM Web users are satisfied* Fixed: Assessing TIM Fixo satisfaction* Subscriber base reached ~200K users Market average7.63 Strong customer satisfaction on TIM Fixo TIM Fixo8.52 Over 25% of TIMs clients came from other fixed playersFresh-market: 40% of TIM Fixo users were previously Fixed Mkt Avg TIM FixoRegion I7.99 8.44unattendedRegion II 7.85 8.82Region III 7.078.44Customer loyalty far above the average market 11 *source: TNS Intersience Survey Dez2008 13. TIM PARTICIPAES S.A. | Investor Relations 4Q08 ResultsMacro Scenario & TIMs FundamentalsTIMs Re-launch PlanHistorical Data 12 14. TIM PARTICIPAES S.A. | Investor RelationsMain phases of TIM Brasils re-launch plan2008 1st half2008 2nd half 2009 1st quarter 2009 2nd quarter 2009 2nd half Phase 0: Current Phase 1:Difficulty RestructuringPosition Re-Launch Plan Volume driven New managementLoss of Top of BrandstrategyteamMind/PreferencerepositioningFalling ARPMStrict financialDrop in volume New portfolio ofRising bad debt disciplineshare and valueofferingsOffering strategy Launch of Fixed-Issue in post-paid Convergingis lackingMobile substitution segmentapproachoffer Loss of Lower ProfitabilityDefend % EBITDAGrowth in Value Revenue Share13 15. TIM PARTICIPAES S.A. | Investor RelationsRe-launch plan1 Brand Repositioning: Strong communication, maintaining coherence and awareness2 Offering portfolioDistinctiveness: Custom and multiple play offers3 CaringSelectiveness: New management model based on access/ value 4 Sales Force Leveraged footprint: higher productivity with a multi-channel approach 5 NetworkQuality and efficiency: higher capacity and to support 3G roll-out 6 Organization and teamNew, marketing-driven and rapid: a customer-oriented structure 14 16. TIM PARTICIPAES S.A. | Investor RelationsRe-launch timeline1Q09 2Q09 3Q094Q09New strategy assessmentNew Offering: Network optimization Consumer Organization and Team CorporateNew Caring Model Convergent Advertising: new formatPush on CommercialConvergence: multiple Actions Push on the points ofplay strategy Push on existing Offers:sale TIM Fixo TIM Web Existing post-paid offerHigh Churn:Post-paid Subscribers: Results back on track Back to Revenue GrowthClean our prepaid andpostpaid customer base15 17. TIM PARTICIPAES S.A. | Investor Relations Commitments for 2009Top of Mind Strengthening Preference the PositionARPU Growth in ValueRevenue Growth Back to double digit in 2H Service Revenue ShareMaintain #2 Operating cash flow Positive (EBITDA CAPEX)16 18. TIM PARTICIPAES S.A. | Investor Relations 4Q08 ResultsMacro Scenario & TIMs FundamentalsTIMs Re-launch PlanHistorical Data 17 19. TIM PARTICIPAES S.A. | Investor Relations Historical indicators: operational results QoQ YoYYoY 4Q083Q08 4Q07 20082007 % %% Estimated Population in the Region (million)193.1192.4 190.5 0.3%1.4% 193.1 190.5 1.4% Municipalities Served - GSM 2,7682,765 2,655 0.1%4.3% 2,768 2,655 4.3% Brazilian Wireless Subscriber Base (million)150.6140.8 121.0 7.0% 24.5% 150.6 121.024.5% Estimated Total Penetration 78.0% 73.2% 63.5% 4.9 p.p. 14.5 p.p. 78.0% 63.5% 14.5 p.p. Market Share 24.2%25.0% 25.8% -0.9 p.p. -1.7 p.p.24.2% 25.8% -1.7 p.p. Total Lines ('000)36,40235,206 31,2543.4% 16.5% 36,40231,254 16.5% Prepaid 29,83228,386 24,4835.1% 21.8% 29,83224,483 21.8% Postpaid6,5716,820 6,771-3.7% -3.0% 6,571 6,771-3.0% Gross Additions ('000)4,6744,573 4,576 2.2%2.1% 17,08015,401 10.9% Net Additions ('000)1,1961,392 2,094 -14.0% -42.9%5,149 5,843 -11.9% Churn 9.8% 9.4%8.5% 0.4 p.p 1.3 p.p35.5% 35.2% 0.3 p.p TOTAL ARPUR$29.9R$29.7 R$34.50.8% -13.2%R$29.7R$34.4 -13.5% TOTAL MOU86101 106 -14.4% -18.9% 9596-1.0% Investment (R$ million) 782.5510.7 1,007.253.2% -22.3%3,272.1 1,932.969.3% Employees 10,29610,173 10,0431.2%2.5% 10,29610,0432.5% Numbers may differ from the previous publishing due to rounding18 20. TIM PARTICIPAES S.A. | Investor RelationsHistorical indicators: financial results1Q072Q073Q074Q07 2007 1Q08 2Q083Q084Q08 2008 Net Revenues2.843.173 3.059.568 3.163.387 3.375.515 12.441.6432.992.9573.186.075 3.357.794 3.544.138 13.080.965 Services2.661.539 2.781.858 2.877.941 3.099.698 11.421.0372.837.6632.970.664 3.065.744 3.222.737 12.096.808 Handset Revenue 181.634 277.710 285.445 275.8161.020.606155.294215.411 292.051 321.401984.157Operating Expenses(2.179.122) (2.315.857) (2.621.251) (2.485.100) (9.601.330)(2.460.169) (2.548.906) (2.559.338) (2.613.134) (10.181.547) Personal Expenses (152.173) (156.631) (149.426) (167.167) (625.398)(162.625) (168.697) (152.654) (164.186)(648.162) Selling and Marketing Expenses(571.742) (618.680) (674.698) (646.957) (2.512.078)(598.141) (665.621) (715.019) (708.347)(2.687.128) Network & Interconnection (908.735) (899.760) (996.524) (1.060.069) (3.865.089)(1.044.547) (1.072.570) (1.077.171) (1.048.241)(4.242.530) General & Administrative(112.562) (108.011) (102.812) (106.314) (429.699)(123.779) (107.984) (101.496) (118.883)(452.143) Cost of Goods and Services(263.619) (376.408) (420.673) (373.729) (1.434.431)(263.235) (324.831) (378.072) (439.650)(1.405.788) Bad Debt(172.968) (168.405) (275.371)(97.827) (714.571)(271.701) (203.327) (143.250) (130.554)(748.833) Other operational revenues (expenses)2.67812.039(1.746)(33.036)(20.065) 3.859(5.876)8.325(3.272) 3.036EBITDA664.051 743.711 542.136 890.4152.840.313 532.788 637.169 798.456 931.0042.899.418 EBITDA - Margin over total net revenues 23,4% 24,3% 17,1% 26,4%22,8% 17,8% 20,0% 23,8% 26,3%22,2%Depreciation & Amortization(582.266) (569.986) (569.251) (602.172)(2.323.674)(572.033)(596.338) (617.988) (622.185) (2.408.545)EBIT 81.786 173.725 (27.115)288.243 516.639 (39.245)40.831 180.468 308.818490.872Net Financial Results (63.255)(81.462)(80.893)(55.889)(281.500) (73.609) (91.382) (152.943)(57.041)(374.974)Income (loss) before taxes and Minorities17.37589.709(118.939)246.995 235.139(112.854) (50.552) 27.526 251.778115.898Income tax and social contribution(36.840)(55.727) (8.009)(66.261)(166.837) (12.613) (15.743)(39.579)132.188 64.254 Net Income (Loss) (19.465) 33.982(126.949)180.734 68.302 (125.466) (66.295)(12.053)383.966180.152 Numbers may differ from the previous publishing due to rounding 19 21. TIM PARTICIPAES S.A. | Investor RelationsSafe Harbor statementsStatements in this presentation, as well as oral statements made by the management of TIM Participaes S.A. (the Company, or TIM), that are not historical fact constitute forward looking statements that involve factors that could cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward looking statements. The Company cautions users of this presentation not to place undue reliance on forward looking statements, which may be based on assumptions and anticipated events that do not materialize.Investor Relations Visit our WebsiteAvenida das Amricas, 3434 - Bloco 01 http://www.timpartri.com.br 6 andar Barra da Tijuca 22640-102 Rio de Janeiro, RJ Phone: +55 21 4009-3742 / 4009-3446 / 4009-4017 Fax: +55 21 4009-3990 20 22. TIM PARTICIPAES S.A. | Investor Relations 21