TSD Tele Sudeste Cel

RIO DE JANEIRO, Brazil, Oct. 28 /PRNewswire-FirstCall/ -- Tele Sudeste Celular Participacoes S.A. ("TSD"), (Bovespa: TSEP3 (ON = Common Shares); TSEP4 (PN = Preferred Shares); (NYSE:TSD), announced its consolidated results for the third quarter of 2005 (3Q05). R$ million 3Q05 2Q05 3Q04 Net Operating Revenue 508.2 521.0 490.4 Total Operating Costs (375.1) (430.8) (361.0) EBITDA 133.1 90.2 129.4 EBITDA Margin (%) 26.2% 17.3% 26.4% Net Result 33.1 4.1 21.2 Number of customers (thousand) 4.642 4.665 4,065 Market share (source: Anatel) 44.2% 45.9% 48.4% Net Additions (thousand) (24) 241 142 Strong competition during the 3Q05, with the campaign for the Fathers. TSD's customer base rose 14.2% over 3Q04, reaching 4,642 thousand customers. In the year-to-year comparison, the postpaid customer base grew 20.3%, a result of the efforts for acquisition of customers in this market segment. SAC of R$156, a 24.6% reduction in the quarter and a 15.7% reduction in relation to 3Q04. ARPU recorded 2.3% growth over 2Q05. Postpaid ARPU grew 6.1% in the same period. Increase of services revenue of 4.0% over 2Q05 and 6.9% over 3Q04. Data revenues grew 150.9% over 3Q04, reaching 5.2% of the net services revenue in 3Q05. Launching of Corporate VIVO Play 3G, service based on a 3rd Generation technology that offers cellular access to multimedia contents, consolidating the absolute Leadership in innovative and diversity of services launched on the market. Successful in the differentiation strategy as regards its competitors as a result of the provision of innovating services. Accumulated EBITDA in 2005 of R$ 375.7 million, representing a margin of 25.0%. Increase of 8.9 percentile points in the margin in the quarter, reaching 26.2%. 100% coverage in the municipalities within its area of operation with CDMA 1xRTT digital technology and use of CDMA2000 1xEV-DO technology in the city of Rio de Janeiro. Operating Cash Flow increased by 138.1% and 132.3% in relation to 2Q05 and 3Q04, respectively, showing its operational efficiency. To download the complete version of the Company's earnings release, please visit our website: http://www.vivo.com.br/ir. Tele Sudeste, along with Telesp Celular Participacoes S.A. (controlling shareholder of Tele Centro Oeste Participacoes S.A.), Tele Leste Celular Participacoes S.A., and Celular CRT Participacoes S.A make up the assets of the Joint Venture undertaken by Portugal Telecom and Telefonica Moviles, operating under the VIVO brand, Top of Mind within it's coverage area. In September 2005, VIVO Group exceeded 28.8 million customers, thus keeping its market leadership. DATASOURCE: Tele Sudeste Celular Participacoes S.A. CONTACT: Charles Allen, +55-11-5105-1172, for Tele Sudeste Celular Participacoes S.A. Web site: http://www.vivo.com.br/ http://www.vivo.com.br/ir

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