Contacts: In Brazil Ruggero Caterini Joana Dark Fonseca Serafim Phone #: +55 41 312-6862 E-mail: jserafim@timsul.com.br Web site: www. timsul.com.br

TELE CELULAR SUL PART

ANNOUNCES ITS FOR THE FOURTH QRESULTS 1999

Curitiba, March 24, 2000 – Tele Celular Sul ParticipaçõTCLS3;TCLS4), the Holding Company of Telepar Celular SCelular S.A., leading providers of cellular telecommunications sits results for the fourth quarter and year-end of 1999.

CEO Statement “For Tele Celular Sul, 1999 was a particularly challeeffort on the part of management both to organizactivities that allowed it to maintain its leading poCompany achieved a solid increase in its customer approximately 70% more than the figure recordedMarket Share of 86%, which is the best withinindustry.” 3Q993Q993Q993Q99 Total Gross Revenue 206,344 Net Operating Revenue 125,734Net Cell Phone Sales Revenue 39,544Total Net Revenue 165,278 EBITDA 23,188EBITDA Margin 14%EBITDA Margin, excluding cell phone sales 18%Depreciation 33,672 Net Profit (6,926)Profit per Share (0.20)

Stock Exchange at September 30, 1999:

TCSL3: R$ 2.40 /1,000 sharesTCSL4: R$ 3.65 / 1,000 shares

TSU: US$ 19.13 (ADR = 10,000 PN shares) Market Value: R$ 1,065,095 million

US$ 554,073 million

ICIPAÇÕES S.A. UARTER AND YEAR-END

es S.A. (NYSE: TSU; BOVESPA: .A., Telesc Celular S.A. and CTMR ervices in southern Brazil, announces

nging year because it demanded great e the company and to carry out the sition in the market. As a result, the base, surpassing 1 million clients, or in December 1998, maintaining its the Brazilian cellular telephone

4Q994Q994Q994Q99 1999199919991999 1998199819981998 262,992 857,599 644,007

149,480 531,256 504,201

61,595 149,191 0211,075 680,447 504,201

32,196 170,387 267,980

15% 25% 53%22% 32% 53%

32,727 100,781 87,102

10,062 34,332 123,9950.30 0.10 0.38

Market Share The Company maintains a leadership position in its market, closing the year with an approximate 86% Market Share. The total market penetration rate was estimated at 8.4 cell phones per 100 inhabitants, demonstrating that there is room for the growth in cell telephone services. Additionally, Tele Celular Sul’s churn rate was 10%.

Operating Revenue The Company’s gross operating revenue was R$857.6 million in 1999, 33% higher than 1998. For the fourth quarter of 1999, gross operating revenue totaled R$ 263.0 million, a 27% increase in relation to the third quarter. The total net revenue for the year was R$ 680.4 million, with R$211.1 million recorded for the fourth quarter of 1999. Net operating revenue with handsets sales reached R$ 149.2 million and R$61.6 million, in those same periods.

Gross Operating Revenue Breakdown Gross Operating Revenue Breakdown

Dec. 31 1999 - R$ 857.6 million Dec. 311998 - R$ 644.1 million

In 1999, the Company expanded its total subscriber base by 70%, reaching 1,034,266 subscribers, representing 423,885 new subscribers, of which 279,092 were prepaid users. Operating Costs and Expenses The costs of the services for 1999 amounted to R$234.9 million, a 39% increase in relation to 1998. For 4Q99, this item amounted to R$ 65.0 million, compared to R$ 62.6 million for the third quarter of 1999. The increase in these expenses during the year is primarily due to network growth and the change in the depreciation rates (R$29.4 million).

Composition of the Cost of Services Rendered Composition of the Cost of Services Rendered Dec/31/99 - R$ 234.9 million Dec/31/98 - R$ 169.1 million

Cost of handsets sales for the year amounted to R$ 204.8 million, of which R$ 92.0 million was for the fourth quarter of 1999.

99,1

42,7

158,7

5,4

317,3

20,9

Connection Fee

UseSubscription

Rental

OtherUse of Network12,8

167,4 357,1

166,6

17,1

136,6

Hanset Sales

UseSubscription

Rental

Other

Use of the Network

47,8

44,553,2

11,7 8,43,5

Third Party Services

Use of Network

Depreciation

Interconnection

PayrollFistel

22,7

54,0

12,36,2

41,098,7

Third party services

Interconnection

Use ofNetwork

Depreciation

Payroll

Fistel

70% growth in the total subscriber base

General and administrative expenses totaled R$62.1 million for the year compared to R$ 39.5 million recorded in 1998. The increase in these expenses are mostly due to the following: 1) billing expenses (the cost of issuing bills), increased with subscriber growth; 2) expenses related to billing systems which was was replaced in October/99 by in-house systems; 3) increase in staff to 1,024 (358 employees in 1998). Marketing expenses were R$117.3 million for the year, compared to R$ 68.2 million in 1998. During the fourth quarter of 1999, marketing expenses amounted to R$35.1 million, a 9% growth as compared to the previous quarter. For 1999, expenses related to doubtful accounts, listed under selling and administrative, represented R$ 50.3 million (R$46.9 million in 1998), or 6% of the Company’s total revenue. In the third quarter the Company adopted more realistic criteria for the provision for doubtful accounts, which increase expenses by R$ 2.8 million for the period. The new Billing System, implemented during the fourth quarter of 1999, will allow the Company to establish better credit and collection control measures through the centralization of its Central de Tele Cobrança (Automated Billing Unit). Marketing and advertising expenses for 1999 reached R$ 35.1 million (R$ 5.1 million in 1998) reflecting the transition into a more competitive environment. Tele Celular Sul has been encouraging its customers to migrate from the analogue to the digital system, thereby amassing an inventory of used analog devices. This inventory was marked to market so as to reflect the effective selling expenses; such adjustment was provisioned for under other operating expenses and represented a cost of R$ 6.3 million. Financing Expenses Financing expenses for the year were R$ 72 million, a 52% increase in relation to 1998. This increase is primarily due to: R$ 16.9 million expenses relating to interest on own capital (accrued during the fourth quarter) and the R$ 31.9 million due to the impact of the Real devaluation that occurred in early 1999. Tele Celular Sul’s interest-bearing indebtedness at December 31,1999 was 222.2 million, representing 40% of stockholders’ equity.

EBITDA EBITDA and EBITDA margin for the year represented R$ 170.4 million and 25% respectively, over net revenue - or 32%, excluding subsidies, but including the sale of cell phones. The decrease in relation to 1998 (R$ 268.1 million and a 53% margin) is basically due to the increase in marketing costs, the practice of subsidizing the sale of handsets and the migration of customers from the analogue to the digital system, as well as to adjustments previously mentioned.

97% are short- term debts

97% of the Total debt is Hedged

The EBITDA for the 4Q/99 was R$32.2 million

196,1

26,1Foreign Currency

Local Currency

As of October 1999, the Company raised the selling price of its cell phones, in order to reduce the impact of subsidies on the results. The full effect of this new policy did not impact 4Q99 results due to the special marketing strategy adopted during the Christmas’s season, which is characterized by a high volume of sales, as well as a high level of migration from analogue to the digital system. As a strategy to obtain customer loyalty, the Company persuaded 194,921 subscribers to migrate to the digital system, with 64,893 migrations occurring during the fourth quarter. Non-Operating Income The Company replaced some of its equipment and technology in order to digitalize its network. Fixed assets were therefore written-off in the quarter, resulting in an expense of R$ 5.4 million – the net value of the provisions made for future sales.

Net Profit Consolidated net profit for the year was R$ 34 million, a decrease of 72% when compared with R$ 124 million for 1998. The main factors contributing to the decrease in margins and, consequently, to the decrease in net profit were: 1) strong expansion under increased competition, handsets sale subsidies and of the migration to the digital system; 2) expenses incurred due to aggressive marketing and a greater volume of commissions paid to dealers; 3) the effects of the currency devaluation; 4) change in the depreciation rates; 5) change in the doubtful accounts provisioning criteria. Investment

The Company invested R$ 298.4 million during 1999, 46% more than in 1998 (R$ 192 million), prioritizing network expansion and digitalization, in addition to the development of new systems to meet customers’ demands and maintain a leading position as a mobile telephone provider in the region. Network Digitalization

Funding Most of the investment program carried out in 1999 was funded by the Company’s own cash generation. However, to complement the amount needed Tele Celular Sul carried out two major funding efforts in 1999, through its controlled companies: Telepar Celular and Telesc Celular. The first, amounting to R$ 144 million (net amount of R$ 122 million) consisted of an issue of Promissory Notes due in 360 days at an approximate cost of 103% of the Interbank Deposit Certificate (CDI). The second, amounting to R$ 73 million (approximately US$ 40 million) was entered into with the Export-Import Bank of the United States - “Eximbank”. As the funds were received in January 2000, they are not included in the Company’s indebtedness account for December 1999.

As part of the hedging policy, the first operation had a floating interest rate covered by a

64.8 thousand migrated to the digital system

Digital Analogue Digital Analogue556 106 16.917 18.32684% 16% 48% 52%

ERB´S Voice Channel

swap operation, thus becoming a fixed rate loan of 23.85% per annum. An exchange rate swap operation was arranged for the second funding effort, converting the debt to Reais.

Expectations For 2000, Tele Celular Sul believes that technological progress and increased competition by companies operating in the PCS (Personal Computer Service) frequencies will continue stimulating the growth of the industry and, at the same time, will pose new challenges, leading to continuous improvement in the quality of services.

The consolidation of the Company, its technological infrastructure and new information systems, in conjunction with its experienced work force, favor a continuously innovative strategy with the launching of added-value products, in order to increase the competitive advantages.

The Company will continue striving to maintain its leadership position in the market, focusing efforts on the recovery of the profitability margin and on the improvement of services, as an aspect that will contribute to the success of the customer loyalty efforts. The expectation is for the customer acquisition cost to decrease during 2000.

Tele Celular Sul will pursue the goal of generating value to its shareholders, customers and employees, and overcoming new challenges brought by the market.

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Selected Data Operating Income

3Q99 4Q99 4Q98 1999 1998 Sale of cellular phones 45.819 65.250 - 166.592 0 Usage charges 83.007 99.179 81.106 357.099 317.340 Monthly subscription fee 40.577 47.677 35.580 167.377 158.660 Rental 2.888 1.070 9.704 17.075 42.743 Interconnection charge 34.395 42.648 27.591 136.663 99.091 Activation Fee 0 0 4.687 0 20.789 Others (342) 7.169 1.431 12.793 5.384GROSS OPERATING INCOME 206.344 262.993 160.099 857.599 644.007Taxes on Gross Revenue (41.066) (51.918) (34.958) (177.152) (139.806)NET OPERATING INCOME 165.278 211.075 125.141 680.447 504.201 Net Operating Income from Services 125.734 149.480 125.141 531.256 504.201 Net Operating Income from Sales 39.544 61.595 - 149.191 0

Operating Costs and Expenses

3Q99 4Q99 4Q98 1999 1998Costs of Goods and Services 119.833 156.985 52.244 439.681 183.618 Costs of Services 62.561 64.991 52.244 234.888 169.113 Costs of Goods 57.272 91.994 0 204.793 14.505

Operating Expenses 67.744 84.378 76.020 268.498 158.736 Selling Expenses 32.086 35.055 24.644 117.314 68.176 General Administrative Expenses 16.198 18.489 8.790 62.108 39.549 Financing Expenses 11.860 23.205 41.618 72.447 47.716 Other Operating Expenses 7.600 7.629 968 16.629 3.295

Costs and Operating Expenses 187.577 241.363 128.264 708.179 342.354

Expenses Related to Doubtful Accounts 16.892 13.961 28.763 50.263 46.900

Operating Results

3Q99 4Q99 4Q98 1999 1998

Total Subscribers 891.144 1.034.266 610.381 1.034.266 610.381 Postpaid 726.175 755.174 610.381 755.174 610.381 Prepaid 163.969 279.092 0 279.092 0Estimated population in the region (millions)

14,6 14,7 14,3 14,7 14,3

Penetration (TSU) 202 216 188 216 188Municipalities Served 6,10% 7% 4% 7% 4%Market Share 89% 86% 99% 84% 99%TOTAL ARPU1 R$51 R$53 R$69 R$56 R$75

ARPU postpaid1 R$53,32 60 R$41 R$63 R$75

ARPU prepaid1 R$26,27 26 - R$26 -MOU (incoming) 87 82 - 87 102MOU (outgoing) 59 73 - 70 78MOU (outgoing) prepaid 21 23 - 22 -MOU (incoming) prepaid - 85 - - -Investments ( millions ) R$ 62 129R$ 108R$ R$ 298 R$ 192 Gross Additions 146.027 173.032 80.133 512.940 195.898Disconnections 26.756 28.911 19.041 89.055 45.501Churn 2 3% 3% 3% 11% 8%Points of sales (including own stores)

549 555 503 555 503

Company stores 16 17 10 17 10Total Employees 1.112 1.156 825 1.156 825 Full-time 943 1.024 358 1.024 358 Contractors and Interns 169 132 467 132 467

For 1998 activation fee was excluded.(1)Average net revenue per subscriber, excluding equipamente sales.

TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEET AS OF DECEMBER 31, 1999 AND DECEMBER 31,1998

(Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese)

A S S E T S

1999 1998 1999 1998

ASSETS

CURRENT ASSETS 37.683 126.436 292.711 268.441

Cash and cash equivalents 673 3.894 2.084 151.495

Accounts receivable from subscribers - - 191.566 78.970

Loans to subsidiaries - 94.436 - -

Deferred and recoverable taxes 2.993 291 33.829 24.598

Inventories - - 44.993 3.718

Other assets 34.017 27.815 20.239 9.660

LONG-TERM ASSETS 114.803 6.503 50.452 13.218

Loans to subsidiaries 114.008 6.503 - -

Deferred and recoverable taxes 795 - 40.521 13.168

Judicial Deposits - - 9.781 50

Other assets - - 150 -

PERMANENT ASSETS 439.952 440.179 809.361 623.519

Investments 439.922 440.163 20 20

Property, plant and equipment, net 30 16 791.022 623.093

Deferred charges - - 18.319 406

TOTAL ASSETS 592.438 573.118 1.152.524 905.178

ConsolidatedParent Company

TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEET AS OF DECEMBER 31, 1999 AND DECEMBER 31,1998

(Expressed in thousands of Brazilian Reais) (Translation of the original in Portuguese)

LIABILITIES AND SHAROLDERS EQUITY

1999 1998 1999 1998

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES 29.056 32.182 440.098 213.485

Salaries and social charges 3.934 9 5.980 4.095

Accounts payable and accrued expenses 4.397 115 169.316 97.037

Direct and Indirect taxes 1.606 533 27.127 18.623

Dividends and Profit sharing 15.575 31.525 21.164 41.034

Loans to subsidiaries 2.908 - - -

Loans and financing 5 - 214.991 50.124

Provision for contingencies 631 - 1.520 2.572

LONG-TERM LIABILITIES 2.341 - 22.757 11.773

Loans and financing - - 7.207 10.070

Provision for private pension plan 1.839 - 1.880 1.702

Indirect taxes - - 10.150 -

Provision for contingencies 502 - 3.520 1

MINORITY INTERESTS - - 128.628 138.984

SHAREHOLDERS' EQUITY 560.966 540.861 560.966 540.861

Capital stock 175.872 175.872 175.872 175.872

Profit reserves 143.399 157.435 143.399 157.435

Retained earnings 241.695 207.554 241.695 207.554

CAPITALIZABLE FUNDS 75 75 75 75

TOTAL LIABILITIES 592.438 573.118 1.152.524 905.178

ConsolidatedParent Company

1999 1998 1999 1998 (*)

GROSS REVENUE - - 857.599 644.007 Deductions - - (177.152) (139.806) NET REVENUES - - 680.447 504.201 Cost of services rendered - - (439.681) (183.618) GROSS PROFIT - - 240.766 320.583

OPERATING INCOME (EXPENSES) 6.811 110.921 (173.148) (101.470) Selling expenses - - (117.314) (68.176) General and administrative expenses (6.004) (873) (62.108) (39.549) Equity on subsidiarie`s results 13.658 111.752 - - Other net operating income (expenses) (843) 42 6.274 6.255

OPERATING INCOME BEFORE FINANCIAL EFFECTS 6.811 110.921 67.618 219.113

Net financial income (expenses) 37.191 (7.778) (49.056) (15.692)

OPERATING INCOME 44.002 103.143 18.562 203.421 Non-operating income (expenses) - 9 (5.823) (38.241)

INCOME BEFORE TAXES, PROFIT SHARING,MINORITY INTEREST AND REVERSAL OFINTEREST ON STOCKHOLDERS´ EQUITY 44.002 103.152 12.739 165.180 Income and social contribution taxes (9.939) (7.284) (529) (48.507) Provision for employee profit sharing (1.233) - (2.103) (965) Minority interest 7.357 (32.059)

INCOME BEFORE REVERSAL OF INTEREST ON STOCKHOLDERS´ EQUITY 32.830 95.868 17.464 83.649 Reversal of interest on stockholders´ equity 1.502 30.741 16.868 40.346

NET INCOME FOR THE PERIOD 34.332 126.609 34.332 123.995

Oustanding shares at the balance sheet date (in millions) 334.399 334.399

ConsolidatedParent Company

TELE CELULAR SUL PARTICIPAÇÕES S.A. STATEMENTS OF INCOME FOR THE YEARS ENDED ON DECEMBER 31,1999 AND 1998

(In thousands of Brazilian Reais)(Translation from the original in Portuguese)