1March 06, 2007

TIM Participações S.A.

4Q06 and 2006’s Results

2

Main Messages

Market Performance

Commercial Strategy

Financial Performance

3

GSM Clients: 36.3% of GSM market

% of postpaid: +3 p.p. vs. competitors’ average

Business segment: 30 % leading market share

ARPU: +21% vs. 1° player and +32% vs. 3rd player

Strong EBITDA growth and margin acceleration

positive net profit achieved

Our results top the best performance in the industry

4Q06: Impressive Growth and Strong Financial Performance

4

2006: Value Share and Profitability Growth

Substantial value client

growth

Strong financialresults

Brandawareness

&True Care

31.5% YoY growth in net service revenue and 51.7% VAS revenue increase8.2% reduction in subscriber acquisition cost67.8% EBITDA growth, representing a 24.6% margin (+6.8 p.p. vs 2005) Net income positive in the 4Q06

26.0% YoY growth of total client base vs. 15.9% Brazilian market expansionLeader in net additions, achieving 38.2% of incremental share by the year-end25.4% of market share: narrowing the gap to 1st Player to 3.7p.p. vs 11.1 p.p. in 2005Leader in business segment

TIM: “Top of Mind 2006”Leader in client satisfaction & the most recommended company among clientsImproved CRM and segmentation tools enabling acquisition cost reductionSegmented customer caring focused on loyalty and retention

5

2006: Improving the Corporate Structure

TIM Celular TIM Part.

TIM MaxitelTIM Maxitel

TIM Celular

TIM Nordeste

TIM Participações100.0%

100.0%

20%100%

100%

TIM Sul TIM Nordeste

Structure at the beginning of 2006 Structure at the end of 2006

TIM ParticipaçõesTIM Brasil

Increased focus on reaching high-value customers

Transaction approved on March 16th by the Shareholders Meeting, with no contrary voteNo shareholders exercised the withdrawal rights

More transparency for the marketThe largest Brazilian mobile network operator in terms of market capitalizationImproved tax efficiency

100% 100%

70%

Creation of a simpler organizational and operational structure

TIM Brasil

Nota: Participation (%) in total capital.

6

Main Messages

Market Performance

Commercial Strategy

Financial Performance

7

+17%

Source: ANATEL.

Continued Market Growth

FirstPlayer

ThirdPlayer

Market shareLines and penetration trend

Postpaid lines (Million) Penetration (%)

GrowthYoY

+5.9p.p.

+16%86.2 89.4 91.8

4Q05 1Q06 2Q06 3Q06

16.5 17.4 17.9 18.5

47.3% 48.1% 49.2% 51.2%

95.9

4Q05 1Q06 2Q06 3Q06

- 11.1 pp

4Q06

19.4

99.9 34,5% 33,7%31,1% 30,0% 29,1%

23,4% 23,5% 24,3% 25,1% 25,4%

21,6% 21,8% 22,8% 23,1% 23,9%

4Q06

-3.7pp

53.2%

Increasing market share with continued focus on value customers

51.8% of incremental share in postpaid in the quarterLeader in business segment: 30% market share

Penetration continued to grow, althoughat a decreasing rateIncreased focus on postpaid segment

Narrowing the gap to 1st player

8

Market Share

TIM lines (Mln)

2005 2006

Net adds market share – 2006

+26.0%

YoY

+ 33.4%

+24.1%Prepaid

Postpaid

20.2

80%

20%

25.4

21%

79%

Source: ANATEL.

25.4%23.4%

Anticipation of year-end client base targetOutperforming Market Growth and Improving Value

Constantly outperforming market growth: + 13 p.p. vs. competitors’ averageContinuous customer mix improvement: 21.3% postpaid lines vs 20.1% one year agoLeader in GSM: market share of 36.3%

Maintenance of Leadership in Net Additions:38.2% in 2006 vs. 32.0% in 2005

Others

Vivo

Claro

28.9%

38.1%

38.2%

-5.2%

9

Main Messages

Market Performance

Commercial Strategy

Financial Performance

10

Segmented approach: building up a strong competitive portfolioA Successful Commercial Strategy

TIM Brasil Plans: voice+ SMS + Data + Roaming

TIM Família07 Centavos

COMMUNITY & CONVENIENCE

TIM CasaTIM + 25 TIM Chip OnlyPre Paid international roaming

INNOVATIVE APPROACH

National Tariff Plan for multi-regional companiesFlexible BundlesTIM Web Móvel (Data-only Offer)

INTEGRATED SOLUTIONS

HUPostpaid

HUPrepaid

LUPostpaid

LUPrepaid

Business

11

Leader in Business SegmentInnovation targeting market needs

Business market share *

Complete solution on corporate portfolio

Leader in business segment: 30% market share: + 3 p.p. in 2006 vs. 2005

YoY large accounts customer base growth : + ~ 130% in 2006 vs. 2005

TIM 2006 lines growthper segment

+26%

+51%Business segment:

Base total:

%

Total postpaid net adds in 2006: 1.4 million

Competitors

* Source: Ericsson Research – 2006.

39%61%

BusinessConsumer

30%

12

Optimized Multi-Channel Sales NetworkC

onsu

mer

Increased focus on efficiency

~ 8,500 PoS

~29%

~8%

63%

~ 1,600Tele-sales &

Personal

> 255,000 points

Recharge

~ 660TBP

~ 150

KAM

Note: KAM (Key Account Manager) TBP (TIM Business Promoter)

Bus

ines

s

Retail

•Own stores•Franchising

DealersLargest distribution network in Brasil

Sales workforce strengthening and high-value customer focus

Postpaid acquisition incentives

Commissioning based on value

Qualified large account sales staff ( + 60% YoYgrowth)

Improving channels productivity and efficiency (+75% YoYtele-sales growth)

13

Reducing Acquisition Cost

Declining SAC level despite improved customer and handset mix:

33.3% YoY growth in postpaid gross addsincreasing sales of mid-range and

high-end handsets

Significant reduction in prepaid handsets subsidies has positive impact on direct cost

Focus on “TIM Chip Only” strategy for SAC reduction

Acquisition cost pay-back of 3.6 months in the 4Q06 vs 4.4 months in the 4Q05

SAC performance

35% 34%

65% 66%

4Q05 4Q06

132

CommissionSubsidyAnatel’s fee on

net adds

ComodatoAdvertisingOthers

120

Direct cost Indirect cost

R$

14

Leveraging on leading brand power

TIM Brand is recognized as reliable and appealing, representative of market values and dreams

2006 Top of Mind Award winner***

True care experience through all contact points!

Continued Focus on Customer Satisfaction

Oct/06Apr/06Nov/05Aug/05Apr/05Nov/04Jul/04

Average satisfaction index evolution *

Consumer preference (%)**

Oct/06Apr/06Aug/05Apr/05Nov/04

TIM: The 1st

operator choice**2828

17162427

3rd. Player

1st. Player

Sources: * Interscience - Oct/2006** Instituto Synovate - Oct/2006*** Pesquisa Data Folha, Brasil - 2006

8.638.23

7,848,02

7.81 7,98

3rd. Player

1st. Player

15

Consumer Market CampaignsFocus on fostering intra-network traffic

► Strengthening community concept: On-net traffic promotion is a TIM attribute► Boosting overall salesRecord gross adds in the 4Q06 (3.5 million lines)

► Feliz 0,07 (“Happy 0.07”)On-net local calls for just R$ 0.07 until July/07 for postpaid and prepaid TIM’s clients

► Stimulating Recharge Motivating recharge throughRecarga Fácil (“Easy Recharge”)and TIM Visa

► TIM Família (“TIM Family”)Includes up to 9 dependents with a maximum of 2,500 minutes

► Complete telephony solution for the whole family5% of the postpaid sales in November and December

► TIM Casa (“Home Zone”)Enhancing TIM Plans (fixed and local calls)

► The first option at home or on-the-go> 250 thousands clients at year-end 2006

► Differentiated and creative ways for stimulating recharge1.5% increase in average revenue recharge, even considering 24.2% YoY growth in prepaid base

16

Main Messages

Market Performance

Commercial Strategy

Financial Performance

17

Best trend in net service revenue

Total net revenue growth

Continuous growth in service revenue

Combination of top quality ARPU & customer growth

Effective high user churn ratio away from 1st. player

1Q06 4Q06

Claro

Vivo

R$ Bln

Net Service Revenue Performance*

Reported Organic**YoY Growth

2006*

10.89.5

2005*17% 11%

+21% +14%

+31% +22%

-25% -25%

* Source: based on companies reports** Proforma: Bill & Keep elimination starting on January 1st 2005 (not audited).

Net service revenue Net handsets revenue

R$ Bln Reported Organic**YoY Growth

4Q06

2.92.7

4Q05*

18% 6%

+21% +7%

+43% +22%

-63% -63%

Net service revenue Net handsets revenue

• focus on “TIM Chip Only”• lower weight of handset sales, in view of subsidies reduction

2.0

2.4

2.7

1.8

2.3 2.22.5

2.6

1.91.7

1.51.3

2Q06 3Q06

R$ Bln

83% 89%82% 94%

Becoming market leader on Net Service Revenues

18

ARPU PerformanceARPU improvement Focus on VAS usage stimulation

UsersSMS P2P: + 20%MMS P2P: + 275%Data: + 104%

R$

Traditional*Innovative

UsageMMS P2P: + 22%Data: + 307%

Growth YoY

3Q06

37.0

High quality clients acquired in the quarter combined with a positive seasonality in the period

3731

28

Vivo Claro

37%63%

R$

34.4

4Q06

+8%

Keeping ARPU gap vs. market in the 4Q06

51.7% YoY growth in VAS revenues

Integrated service packages (voice, LD, VAS and data)

Increased content offers and new partnerships

MMS and SMS promotions

New subscription plans

New TIM WAP site

2006 VAS breakdown

*VAS Traditional= SMS P2P and Voice Mail

VAS ARPU

2.2 2.5

19

Solid base growth with high quality clients and profitabilityDelivering Strong EBITDA and Margin

4Q064Q05

797.5

4Q06

EBITDA R$ Mln

2005 20062005

R$ Mln

1,485.9

+45%

2,492.5

+68%

550.3

4Q064Q05

EBITDA Margin (%)

2005 2006

20.1%

27.3%

23.0%

22.9%

24.6%

EBITDA Margin Adjusted (Excluding the effect of B&K elimination starting on Jan 1st, 2005)EBITDA Margin Reported

15.7%17.8%

Continuous EBITDA and margin improvement

Higher efficiency and cost expansion control

Improved competitive environment: no negative impact from Christmas’campaigns

21.5%(excluding deferral of handsets subsidies)

20

From EBITDA to Bottom Line

(R$ Million)

EBITDA4Q06

DepreciationAmortization

EBIT Net Financial Expenses

Taxes and Others

Net Income

∆ YoY(R$ mln) + 247.2 +194.8- 68.4 + 16.8 - 0.8

R$ Mln

+ 178.8

200.3(90.8) (30.9)

(597.2)797.6

Break-even!

∆ 2006 vs. 2005+1,006.6 (370.0) +636.6 +29.7 +21.6 +687.9

Net loss reduction

78.7

(R$ Mln)

21

Financial Discipline well Preserved

OperatingFCF

Increasing dividends distributionImproved net financial position

3Q06

(1,027)

Gross Debt: R$2.2 billion (of which 85% long term / average annual cost of 13% in 4Q06)Cash and equivalents: R$1.2 billionNet Debt: (R$1.0) billion

(113)EBITDA +798CAPEX (693)∆ Oper. WC +769

(1,787)

R$ Mln R$ MlnNonOperating

FCF

122.0

20062005

4Q06

873

450.8

~ 4x

Seasonal increase in purchase related to CAPEX and handsets

R$ per 1,000shares

0.1387

R$ per ADR 1.3870

0.1933

1.9330

Partial realization of the expansion reserve and distribution to shareholders as dividends

22

Statements in this presentation, as well as oral statements made by the management of TIM Participações S.A. (the “Company”, or “TIM”), 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 4009-3314

Visit our Website:

http://www.timpartri.com.br