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TIM Participações S.A.

Bear Stearns - 2006 South American Telecom & Media Conference

Sep 28th. 2006

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Key MessagesThe sole fully integrated nationwide player

Cutting edge in innovation with 1st “home zone offer” in Brazil - TIM Casa

1st Choice for high value customers also in the corporate segment

Rapidly closing the market share gap vs. 1st player

Strong Growth Revenue and share in the market

Combining strong top-line growth with healthy margin expansion

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Industry Environment

Company’s Profile

Commercial Strategy

2Q06’s Review

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Industry EnvironmentLines and Penetration trend

14.9 15.1 15.5 15.8 16.5 16.8 17.1 17.4 17.6 18.0 17.9 18.1 18.3

78.9 80.0 81.2 82.4 86.2 87.5 88.1 89.4 90.6 92.4 91.8 93.0 94.944.0% 44.6% 45.2%

47.3% 47.2% 47.4% 48.1% 48.7% 49.6% 49.2% 49.8% 50.7%

43.4%

Postpaid lines (Million) Penetration (%)

Growth

YoY2006

+7.3pp

YTD

+3.5pp

+20% +10%

+23% +11%

aug/05 sep/05 oct/05 nov/05 dec/05 jan/06 feb/06 mar/06 apr/06 may/06 jun/06 jul/06 aug/06

Source: ANATEL.

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Clients: 28.8Market Share: 30.3%

Clients: 23.6Market Share: 24.9%

Industry Environment

The only fully integrated

with National Presence

Competitive Landscape

&

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4

443

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4

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Clients: 21,870Market Share: 23.0%

Clients: 12,553Market Share: 13.2%

Clients: 2,975Market Share: 3.1%

Clients: 4,666Market Share: 4.9%

# of players

Source: ANATEL. Data base: August/2006Clients (Mln)

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Industry Environment

Company’s Profile

Commercial Strategy

2Q06’s Review

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Company’s ProfileTIM Participações

23.6 million clients with a 24.9% of market share

Leader in Net Adds in 2005 (32.0%) and YTD 2006 (39.3% as of August)

Unique National Mobile Operator

Constant technological innovation: First to lunch the TIM Casa, a home zone pricing service

Leader in GSM in terms of number of clientsBase: August/2006

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Company’s ProfileOptimized Corporate Structure

TIM Participações

TIM Celular

TIM Nordeste

100%

TIM Brasil

100%

ON: 81%PN: 64%Total: 70%

100%

43.15% 10%

100% 100%

46.85%

TIMInternational

TIM Brasil

MAXITEL

TIM Cel Bitel

52.06%52.32%

TND TSU

1 2 31 2 3 4 5 6

TIM Celular

TIM SP

TIM RIO Norte

Past structure Current structure

Remove tax inefficiencyBecome more transparent to the marketIncrease liquidity of listed sharesThe restructuring transactions were conducted in a fair and transparent way

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Company’s ProfileStrategic Stance

Offer

VAS & Innovation

Distribution

Coverage

TRUE CARE

Brand and communication

Caring

market leader in Total Customer Caring offering a unique and innovative experience through all contact points

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Company’s ProfileContinuing outperforming market growth

National Market and Penetration Market share

36.1%34.5%

33.7%

31.1%30.3%

22.2% 22.9% 23.4% 23.5%24.3% 24.9%

37.7%

2Q05 3Q05 4Q05 1Q06 2Q06 Aug06

YoY Lines growth

Market

TIM

39.8% 37.6%

60.8% 56.4%

30.3%

43.5%

31.4%

48.5%

FirstPlayer

TIM

- 7.4 pp

+ 2.7 pp

YoY change

21.5%

33.3%

Narrowing the gap vs. 1st. Player

75.5 80.086.2 89.4 91.8 94.941.6% 44.0%47.3% 48.1% 49.2% 50.7%

2Q05 3Q05 4Q05 1Q06 2Q06 Aug06

Total market lines (Million) Penetration (%)

20.2%

31.1%

Source: Anatel’s data base.

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Company’s ProfileCustomer base: combining growth and quality

22.2% 24.3%Market Share (%)

TIM Lines (mln)

16.8

80%85%

2Q05 2Q06

Strong Quality Base

+33.3%

YoY Strong 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%

Revenues Share (%) 29.0%

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Industry Environment

Company’s Profile

Commercial Strategy

2Q06’s Review

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Front-runner in innovationFirst to launch a home zone pricing Service (“TIM Casa”)

change the consumer’s perception that mobile calls are more expensive than fixed-line

Your TIM mobile now is also your home phone!

TIM Plans + TIM Casa Service

Flexible and attractive for home telephony

Enhancing TIM Plans:Postpaid: 200 minutes per R$ 29.90/month (Fixed local call)Prepaid: 100 minutes per R$ 19.90/month (Fixed local call)

The home zone pricing service savings of up to 25% and 50% for postpaid and prepaid users, respectively

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Pushing on VAS usage: Try and Buy

TV Globo World Cup Promotion

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

2006 prizes (boosted 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 Intl editorial, entertainment and music.

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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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Leadership in mobile office solutionsLong Distance and International roaming aggressive offerVolume discount for national contracts

Leveraging on Corporate MarketLeader in Business Segment

Segmented management through customer profiling One on one Retention offers Implementation of dedicated account for top SME clients

Acquisition Retention

1.4 2.2

18.0

23.6

YTDAug/05

YTD Aug/06

1.4 2.2YTD YTD

Corporate

27.3% 30.0%

33.6% 28.5%

18.6% 21.4%

TIM Lines (mln)

1st Player

2nd Player

TIM

Corporate Market Share

July/05 July/06

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

Leader in the business segment with 2.2 million lines

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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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Industry Environment

Company’s Profile

Commercial Strategy

2Q06’s Review

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2Q06’S Key AchievementsDelivering continuous and profitable growth

Strong Subscriber growth

ARPU marked trend improvement QoQ and YoYSuccessful 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)

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

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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1H06’s Main FinancialsNet Revenues EBITDA

19%

81%

R$ mln

YoY

+15%4.4523.886

Handsets salesService

1H05 1H06

15%

85%

R$ Mln YoY

EBITDA Margin over Total Net Revenue

+65%1.018

615

1H06 1H06

15.8%22.9%

+7.1 p.p.

+21%

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Focus on 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

2Q06

37%

Traditional Innovative

147 41% 237

Usage

MMS P2P: + 156%Data: + 345%

Growth YoY

-3.3%

+0.7% positive inversion

Improving ARPU trends

QoQ2Q05 2Q06

6.8% 8.9%

VAS revenue over total service revenue

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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