TIM Participações S.A. reported strong results for 2Q06, with over 1.3 million net subscriber additions reaching a base of 22.3 million. Financial performance was also positive, with net service revenues growing 20% year-over-year and EBITDA increasing 73.4% to R$500 million. Key regulatory outcomes included the exclusion of partial bill and keep interconnection rates and the introduction of peak and off-peak rates for long distance calls, while Anatel will define costs and implementation for number portability and 3G licenses.

1. TIM Participações S.A.
2Q06’s Results
July 24th, 2006
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2. Key Achievements
Market Performance
Financial Performance
Key Regulatory Outcomes
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3. Key Achievements
Delivering continuous and profitable growth
Over 1.3 million net adds
Strong Subscriber growth 22.3 million clients base
24.3% of market share
Promotions focused on usage and on net traffic
Full pipeline of innovative First and unique to offer international roaming
services continuously (VAS + Voice) for GSM prepaid customers
stimulating usage First to offer BlackBerry to business and consumer
Leader in the business segment
Net service revenues: + 20% YoY
Successful performance
ARPU marked trend improvement QoQ and YoY
on services top-line
Growing momentum of VAS revenue: + 62% YoY
(8.9% of total service revenues)
EBITDA of R$500 million: 73.4% higher YoY
Consistent focus on Profitability 21.5% Margin EBITDA (+7.6 p.p. YoY)
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4. Key Achievements
Market Performance
Financial Performance
Key Regulatory Outcomes
4

5. Continuing outperforming market growth
National Market and Penetration Market share
YoY Lines growth
YoY change
TIM 60.8% 56.4% 48.5% 43.5% 33.3% First
30.3% 21.3% Player
Market 39.8% 37.6% 31.4%
49.2% 37.7%
47.3% 48.1% 36.1%
91,8 34.5% 33.7%
44.0% 89,4
41.6% 86,2 31.1%
-6.6 pp
80,0
75,5 TIM 24.3%
23.4% 23.5% + 2.1 pp
22.2% 22.9%
2Q05 3Q05 4Q05 1Q06 2Q06
2Q05 3Q05 4Q05 1Q06 2Q06 Narrowing the gap vs. 1st. Player
Total market lines (mln) National Penetration
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Source: Anatel’s data base.

6. Customer base: combining growth and quality
TIM Lines (mln) Strong Quality Base
Strong postpaid gross additions in the
YoY quarter (21.6% share of total gross vs.
22.3 +33.3% 17.5% in 2Q05)
16.8
21% +35.1% Continuous customer mix
20%
improvement: 21% postpaid lines vs
79% + 32.9% 20% one year ago
85%
Postpaid 80%
Prepaid Leader in GSM market
87% of our lines are GSM, an increase
2Q05 2Q06
of +12 pp YoY
Market Share (%) 22.2% 24.3%
GSM base grew by 54% YoY
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7. Leveraging on Corporate Market
Leader in Business Segment
Acquisition Retention Main driver of TIM postpaid base growth:
70% of the total net additions YTD
Leadership in Segmented
mobile office management Increasing share of churn market from
solutions through customer competitors
profiling (evolution
from retention to Powerful and growing large account portfolio
Long Distance and relationship)
International
First to offer BlackBerry
roaming
aggressive offer One on one Leader in the business segment with almost
Retention offers
2 million lines
Volume discount
for national Implementation of
contracts dedicated account
for top SME clients
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8. Promotions focused on usage and on-net traffic
Segmented Consumer Offer
“Tarifa Zero” Bonuses for on net call Leveraging on TIM community
Zero Tariff Regional approach concept
on net Reduced aggressiveness
in prepaid subsidy Boosting sales in regions with
lower market share growth
Focus on prepaid high user Quality acquisitions: new clients
“TIM +25” Reward outgoing traffic show 15% higher ARPU than the
& “TIM + 5” Important acquisition and average prepaid base
retention tool
Proactive retention : 1 of 5
prepaid current lines already
“TIM Chip Only” Bonuses for recharge moved to “TIM + 25” or “TIM +5”
Push on made in 48 hours
recharge Low SAC strategy Push on “TIM Chip Only” pays
off: users recharge 3x > average
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9. Roaming all over the world
Focus on corporate segment, but not only…
Leader in International GSM/GPRS/EDGE/MMS/SMS roaming
First and only to offer Voice/VAS prepaid international roaming
TIM’s roaming services are based on :
Convenience: one handset – and one number – worldwide
Coverage: the largest international GSM network available for customers
Promotional bundle offer: positive effects on outbound traffic (stimulating
the usage)
Roaming Alianza
(one rate offer)
Virtual Home
Environment
(intelligent network)
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10. Bringing technology to the low and mid user
Industry trend: Improved handsets mix at a more accessible cost
LOW (entry price <= R$399) MED (> R$400 <= R$999) HIGH ( >R$999)
15 models 16 models 9 models
• 100% colour display • 100% color display, GPRS/ • 100% with Video Play Back
• 90% GPRS WAP WAP and MMS • 100% Bluetooth and
• 80% with speaker phone • 93% embedded camera embedded camera
• 56% infrared (data connection)
• 67% with EDGE features
Customers are searching for more sophisticated handsets
Features of the most
2Q05 2Q06 Enabling handsets base – 2Q06
sold handsets
•Monochromatic •Colour Display 55%
•Monophonic •Polyphonic, MP3 37%
•No Camera •Camera 26%
•No GPRS and WAP •GPRS and WAP
•EDGE
•Infrared WAP GPRS MMS
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11. Pushing on VAS usage: Try and Buy
Increasing service Evolving segmentation to
Boosting SMS
penetration community concept
New TIM WAP site MMS Promotion
New site to facilitate access to the WAP content: Promotional price on MMS for all customers during a
segmented layout to low, med and high users. month to reduce the entry barrier and improve
service penetration.
Provide community place, strategic content, real time
Brazilian and Int.l editorial, Entertainment and music.
Mega TIM TV Globo World Cup Promotion
SMS special bundle sold electronically (IVR) and Cross-operator innovation initiative the user can
through recharge cards during short periods to pull subscribe a World Cup channel per week and win
customer usage. 2006 prizes (boost revenue in June)
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12. Key Achievements
Market Performance
Financial Performance
Key Regulatory Outcomes
12

13. Growing in Value
Gross Revenues Gross Revenues Analysis
R$ mln
2Q06 YoY
YoY TOTAL GROSS REVENUE (R$ mln) 3,202 + 16%
3,202 +16%
2,753 Voice (R$ mln) 2,418 + 20%
22% 17% Traffic Volume (Bln min.) 5.3 + 25%
Value Added Service (R$ mln) 237 + 62%
78% 83%
Handsets Revenue (R$ mln) 547 - 8%
6.8% 8.9%
2Q05 2Q06
TOTAL NET REVENUE (R$ mln) 2,321 +12%
Service Handsets sales Net Service Revenues (R$ mln) 1,958 +20%
Net Handset Revenues (R$ mln) 363 -18%
VAS revenue over total service revenue
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14. ARPU Performance
ARPU Analysis VAS Revenues (R$ mln)
ARPU (R$) 2Q05 2Q06
30.2
30.0
41% 237
147 37%
1Q06 2Q06
marked improvements in ARPU
dynamics over time Traditional Innovative
Improving ARPU trends Growth YoY Growth YoY
+0.7% positive Users Usage
inversion
-3.3% SMS P2P: + 38% MMS P2P: + 156%
QoQ MMS P2P: + 148% Data: + 345%
Data: + 223%
2Q05 2Q06
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15. EBITDA Performance
EBITDA Weight on EBITDA Margin 1
YoY
R$ Mln A) Variable costs 2Q06
500.0 +73%
Interconnection -0.1 pp
288.3 Handsets Cost -1.9 pp
+7.6 p.p.
- 2.0 pp
21.5%
13.9%
B) Fixed & Commercial 2Q06 Headcount growth
lead by: CRM’s
improvements pre
Commercial expenses -3.6 pp and post-sale
G&A and Others -2.8 pp supporting
2Q05 2Q06
EBITDA Margin over Total Net Revenue Labor cost +0.4 pp
Change in the
Industrial cost -1.8 pp provision
methodology in
Bad debt +2.2 pp 2Q05. % on
Speeding up YoY margin growth: revenues in line
-5.6 pp QoQ
7.6 p.p. in the 2Q06 vs 6.2 p.p. in the 1Q06
(A) + (B) -7.6 pp
1 Calculated as YoY change of the OPEX weight on total revenues 15

16. SAC Performance
SAC
R$
170 168 Declining SAC level despite:
increased % postpaid on
Commission gross adds
59% 58% Subsidy focus on corporate clients
Anatel’s fee on progressively increases
net adds weight of comodato
Comodato Higher entry price handsets
41% 42% Advertising has positive impact on direct
Others cost
2Q05 2Q06
Direct cost Indirect cost
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17. From EBITDA to Bottom Line
∆ YoY
(R$ mln) +211.7 -103.1 +108.6 +17.8 -39.8 +2.1 +84.4
(R$ Million)
R$ Mln
25% reduction in
the Net Losses
500.0 (562.9)
Include 75 mln non
recurring provision
related to deferred tax
asset*
(62.9) (85.8)
(249.0)
(100.2)
EBITDA Depreciation EBIT Net
Amortization Financial Taxes and Minorities Net Losses
Expenses Others
* Deferred tax asset booked in the incorporated companies, TIM Sul and TIM Nordeste, before the merger occured.
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18. Net Financial Position
Net Financial Position Operating Free Cash Flow
R$ Mln Non
1Q06 Operating Operating
FCF FCF
2Q06 On track to break-even
R$ Mln
1Q06 2Q06
(39)
+1,211
(1,536) (39) (1,250)
(247) (1,822)
Impact of strong working capital seasonality:
EBITDA +500 4Q05 CAPEX paid out in 1Q06
Of which
CAPEX (351) significant handset stock paid for in 1Q06
Dividends (58)
∆ Oper. WC (188) Fistel on FY05 base paid in one installment in March 06
Gross Debt: R$2.9 billion (of which ~90% long term / average cost of 14.9% in 2Q06)
Financial Assets: R$1.1 billion
Net Financial Position: R$1.8 billion
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19. Key Achievements
Market Performance
Financial Performance
Key Regulatory Outcomes
19

20. Key Regulatory Outcomes
End of • Anatel’s resolution excluded the partial bill & keep regime, which
Bill & Keep means that mobile company will now have to pay termination
(Effective from July 14th 2006) charges on each local call to other mobile company
Introduction of “peak” • The same resolution established to the mobile companies the
obligation to apply 30% discount between “peak” and “off peak”
and “off peak” time interconnection rates to Long Distance calls
for LD calls
FAC • Implementation date to be defined.
• The cost have to be defined for each group in 3 different regions,
(Full Allocated Cost) according to the PGO – “Plano Geral de Outorgas”
3G Licenses • 5 band in the frequency 1.9/2.1 GHz
(Public Consultation) • Auction criteria and prices to be defined
• Licenses assignment expected for 1H07
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21. “Safe Harbor” Statements
Statements in this presentation, as well as oral statements made by the management of
TIM Participações S.A. (the “Company”, or “TSU”), 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
Avenida das Américas, 3434 - Bloco 01
6° andar – Barra da Tijuca Visit our Website:
22640-102 Rio de Janeiro, RJ http://www.timpartri.com.br
Phone: +55 21 4009-3742 / 4009-3751/8113-0571
Fax: + 55 41 4009-3990
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