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TIM Participações S.A.

2Q06’s Results

July 24th, 2006

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Key Achievements

Market Performance

Financial Performance

Key Regulatory Outcomes

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Key AchievementsDelivering continuous and profitable growth

Strong Subscriber growth

EBITDA of R$500 million: 73.4% higher YoY21.5% Margin EBITDA (+7.6 p.p. YoY)

ARPU marked trend improvement QoQ and YoY

Consistent focus on Profitability

Successful performance on services top-line

Over 1.3 million net adds22.3 million clients base24.3% of market share

Net service revenues: + 20% YoY

Growing momentum of VAS revenue: + 62% YoY(8.9% of total service revenues)

Full pipeline of innovative services continuously

stimulating usage

Promotions focused on usage and on net trafficFirst and unique to offer international roaming (VAS + Voice) for GSM prepaid customers First to offer BlackBerry to business and consumerLeader in the business segment

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Key Achievements

Market Performance

Financial Performance

Key Regulatory Outcomes

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Continuing outperforming market growth

National Market and Penetration Market share

YoY Lines growth

Market

TIM39.8% 37.6%60.8% 56.4%

30.3%43.5%

31.4%

48.5% FirstPlayer

TIM-6.6 pp

+ 2.1 pp

YoY change

49.2%

75,580,0

86,289,4 91,8

41.6%44.0%

47.3% 48.1%

2Q05 3Q05 4Q05 1Q06 2Q06

21.3%33.3%

22.2% 22.9% 23.4% 24.3%23.5%

31.1%33.7%34.5%36.1%

37.7%

2Q05 3Q05 4Q05 1Q06 2Q06

Narrowing the gap vs. 1st. Player

Total market lines (mln) National Penetration

Source: Anatel’s data base.

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Customer base: combining growth and quality

22.2% 24.3%Market Share (%)

TIM Lines (mln) Strong Quality Base

16.8

80%85%

2Q05 2Q06

+33.3%

YoYStrong postpaid gross additions in the quarter (21.6% share of total gross vs. 17.5% in 2Q05)

Continuous customer mix improvement: 21% postpaid lines vs20% one year ago

Leader in GSM market

87% of our lines are GSM, an increase of +12 pp YoY

GSM base grew by 54% YoY

+ 32.9%

+35.1%

Prepaid

Postpaid

20%

22.3

21%

79%

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Leveraging on Corporate MarketLeader in Business Segment

Leadership in mobile office solutions

Long Distance and International roaming aggressive offer

Volume discount for national contracts

Acquisition

Segmented management through customer profiling (evolution from retention to relationship)

One on one Retention offers

Implementation of dedicated account for top SME clients

Main driver of TIM postpaid base growth:

70% of the total net additions YTD

Increasing share of churn market from

competitors

Powerful and growing large account portfolio

First to offer BlackBerry

Leader in the business segment with almost

2 million lines

Retention

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Promotions focused on usage and on-net trafficSegmented Consumer Offer

“Tarifa Zero”Zero Tariff

on net

Bonuses for on net callRegional approachReduced aggressivenessin prepaid subsidy

Leveraging on TIM community concept

Boosting sales in regions with lower market share growth

Quality acquisitions: new clients show 15% higher ARPU than the average prepaid base

Proactive retention : 1 of 5 prepaid current lines already moved to “TIM + 25” or “TIM +5”

Push on “TIM Chip Only” pays off: users recharge 3x > average

“TIM +25”& “TIM + 5”

“TIM Chip Only”Push on recharge

Bonuses for rechargemade in 48 hoursLow SAC strategy

Focus on prepaid high userReward outgoing trafficImportant acquisition and retention tool

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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 – worldwideCoverage: 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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Bringing technology to the low and mid user Industry trend: Improved handsets mix at a more accessible cost

LOW (entry price <= R$399)

15 models• 100% colour display• 90% GPRS WAP• 80% with speaker phone

MED (> R$400 <= R$999) HIGH ( >R$999)

9 models• 100% with Video Play Back• 100% Bluetooth and

embedded camera • 67% with EDGE features

Customers are searching for more sophisticated handsets

•Monochromatic•Monophonic•No Camera•No GPRS and WAP

•Colour Display•Polyphonic, MP3•Camera•GPRS and WAP•EDGE•Infrared

2Q05 2Q06Features of the most sold handsets

55%

37%26%

WAP GPRS MMS

Enabling handsets base – 2Q06

16 models • 100% color display, GPRS/

WAP and MMS• 93% embedded camera• 56% infrared (data connection)

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Pushing on VAS usage: Try and Buy

TV Globo World Cup Promotion

Cross-operator innovation initiative the user can subscribe a World Cup channel per week and win

2006 prizes (boost revenue in June)

MMS Promotion

Promotional price on MMS for all customers during a month to reduce the entry barrier and improve

service penetration.

Mega TIM

SMS special bundle sold electronically (IVR) and through recharge cards during short periods to pull

customer usage.

New TIM WAP site

New site to facilitate access to the WAP content: segmented layout to low, med and high users.

Increasing service penetration

Evolving segmentation to community concept Boosting SMS

Provide community place, strategic content, real time Brazilian and Int.l editorial, Entertainment and music.

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Key Achievements

Market Performance

Financial Performance

Key Regulatory Outcomes

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Growing in ValueGross Revenues Gross Revenues Analysis

22%

78%

6.8%

R$ mln

Value Added Service (R$ mln) 237 + 62%

Handsets Revenue (R$ mln) 547 - 8%

2,418 + 20%

2Q06 YoY

YoY

+16%3,2022,753

Handsets sales

VAS revenue over total service revenue

Traffic Volume (Bln min.) 5.3 + 25%

Voice (R$ mln)

Service

2Q05 2Q06

17%

8.9%

83%

TOTAL NET REVENUE (R$ mln) 2,321 +12%

Net Service Revenues (R$ mln) 1,958 +20%

TOTAL GROSS REVENUE (R$ mln) 3,202 + 16%

Net Handset Revenues (R$ mln) 363 -18%

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ARPU Performance

marked improvements in ARPU dynamics over time

ARPU Analysis

2Q05 2Q06

VAS Revenues (R$ mln)

Growth YoY

Users

SMS P2P: + 38%MMS P2P: + 148%Data: + 223%

ARPU (R$)

30.0

1Q06

30.2

2Q0637%

Traditional Innovative

147 41% 237

Usage

MMS P2P: + 156%Data: + 345%

Growth YoY

-3.3%

+0.7% positive inversion

Improving ARPU trends

QoQ

2Q05 2Q06

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EBITDA Performance

EBITDA Weight on EBITDA Margin 1

R$ Mln YoY

(A) + (B)

A) Variable costs 2Q06Interconnection

Handsets Cost

- 2.0 pp

B) Fixed & Commercial 2Q06Commercial expensesG&A and Others

Industrial cost

-3.6 pp-2.8 pp

-1.8 pp

-5.6 pp-7.6 pp

EBITDA Margin over Total Net Revenue

+73%500.0288.3

2Q05 2Q06

13.9%21.5%

+7.6 p.p.

Labor cost +0.4 pp

-0.1 pp

-1.9 pp

Headcount growth lead by: CRM’s

improvements pre and post-sale

supporting

1 Calculated as YoY change of the OPEX weight on total revenues

Change in the provision

methodology in 2Q05. % on

revenues in line QoQ

Bad debt +2.2 ppSpeeding up YoY margin growth:

7.6 p.p. in the 2Q06 vs 6.2 p.p. in the 1Q06

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SAC Performance

SAC

Declining SAC level despite: increased % postpaid on gross addsfocus on corporate clients

progressively increases weight of comodato

Higher entry price handsets has positive impact on direct cost

41% 42%

59% 58%

2Q05 2Q06

170

CommissionSubsidyAnatel’s fee on

net adds

ComodatoAdvertisingOthers

168

Direct cost Indirect cost

R$

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From EBITDA to Bottom Line

(R$ Million)

EBITDA DepreciationAmortization

EBIT Net Financial Expenses

Taxes and Others

Net Losses

∆ YoY

25% reduction in the Net Losses

(100.2)(249.0)

500.0 (562.9)

(85.8)(62.9)

(R$ mln) +211.7 +84.4-103.1 +17.8 -39.8 +2.1

Minorities

R$ Mln

Include 75 mln non recurring provision

related to deferred tax asset*

+108.6

* Deferred tax asset booked in the incorporated companies, TIM Sul and TIM Nordeste, before the merger occured.

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Impact of strong working capital seasonality:4Q05 CAPEX paid out in 1Q06 significant handset stock paid for in 1Q06 Fistel on FY05 base paid in one installment in March 06

Net Financial Position

1Q06

(1,250)

+1,211

2Q06

(39)

R$ Mln

OperatingFCF

Operating Free Cash FlowNet Financial Position

1Q06 2Q06

(1,822)

Gross Debt: R$2.9 billion (of which ~90% long term / average cost of 14.9% in 2Q06)Financial Assets: R$1.1 billionNet Financial Position: R$1.8 billion

(39)(247)

EBITDA +500CAPEX (351)∆ Oper. WC (188)

Of whichDividends (58)

(1,536)

R$ MlnOn track to break-even

NonOperating

FCF

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Key Achievements

Market Performance

Financial Performance

Key Regulatory Outcomes

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Key Regulatory OutcomesEnd of

Bill & Keep(Effective from July 14th 2006)

• Anatel’s resolution excluded the partial bill & keep regime, which means that mobile company will now have to pay termination charges on each local call to other mobile company

• The same resolution established to the mobile companies the obligation to apply 30% discount between “peak” and “off peak”interconnection rates to Long Distance calls

Introduction of “peak”and “off peak” time

for LD calls

FAC(Full Allocated Cost)

• Implementation date to be defined.• The cost have to be defined for each group in 3 different regions, according to the PGO – “Plano Geral de Outorgas”

(Public Consultation)

3G Licenses • 5 band in the frequency 1.9/2.1 GHz• Auction criteria and prices to be defined• Licenses assignment expected for 1H07

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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 theCompany 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.

“Safe Harbor” Statements

Investor RelationsAvenida das Américas, 3434 - Bloco 01

6° andar – Barra da Tijuca

22640-102 Rio de Janeiro, RJ

Phone: +55 21 4009-3742 / 4009-3751/8113-0571

Fax: + 55 41 4009-3990

Visit our Website:

http://www.timpartri.com.br