SAO PAULO, Brazil, May 9 /PRNewswire-FirstCall/ -- VIVO Participacoes S.A. (VIVO) (Bovespa: VIVO3 [ON = Common Shares] / VIVO4 [PN = Preferred Shares]; NYSE: VIV), announced its consolidated results for the first quarter of 2007 (1Q07). Vivo's 1Q07 figures reflect the results of the work developed in the management's priority projects in 2006, aiming at reducing the company's weak points and enhancing its strong points, engaging the whole company around the same cause -- customer satisfaction -- and the same goal -- profitable growth, being the sole company to offer CDMA/EV-DO and GSM/EDGE technologies to its customers. R$ million 1Q07 4Q06 1Q06 Net Revenue 2,850.8 2,936.5 2,577.0 Total Operating Costs (2,093.8) (2,078.9) (1,859.9) EBITDA 757.0 857.6 717.1 EBITDA Margin (%) 26.6% 29.2% 27.8% Net Result (19.3) 885.6 (179.3) Number of customers (thousand) 29,030 29,053 30,138 Market share 37.6% 38.2% 43.5% Net Additions (thousand) (23) 328 333 Additions and exchanges of GSM handsets confirm the strategy in implementing the new network and the focus placed on actions that offer plans and services adequate to the consumption profile of each customer. Vivo offers best in class GSM and CDMA solutions. 100% of the customers have already been integrated into a common platform. These synergies provide simplified processes such as billing and collection, besides providing a single platform for the development of products and services. The provision for bad debt of R$107.4 million in the quarter, representing 2.7% of the gross revenue, represents a reduction of 33.3% in relation to 1Q06. EBITDA of R$757.0 million in 1Q07, with EBITDA margin of 26.6% in the quarter, represented a growth of 5.6% in relation to 1Q06. By eliminating the effects of termination of the partial Bill&Keep system, the EBITDA margin would be 29.7%. The operating cash flow plus the increase in working capital generated R$296.7 million in the quarter, while the 1Q06 used resources in the amount of R$ 114.0 million. The net debt in the amount of R$3,305.1 million presents a reduction of 7.0% in relation to 4Q06 and 26.0% in relation to 1Q06. S&P confirmed Vivo's rating and charge its outlook from "negative" to "stable". Campaign: "Vivo. Sinal de Qualidade ". Strengthening the company's new positioning, Vivo launched a new publicity campaign on March 11 establishing therewith a sole and relevant market position and positioning itself as the best mobile telephone company. The campaign clearly shows everything that Vivo has already done (and has continued to do) for its customers to have access to the best service quality. The new slogan "Vivo. Sinal de Qualidade" allows two different interpretations: best quality of connection (basic attribute of the company's new position) and service excellence. To download the complete version of the Company's earnings release, please visit our website: http://www.vivo.com.br/ir DATASOURCE: VIVO CONTACT: VIVO Investor Relations, +55 11 5105-1172 or Web site: http://www.vivo.com.br/

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