Net Announces Anatel's Authorization for the Acquisition of Vivax

SAO PAULO, Brazil, May 16  /PRNewswire-FirstCall/ -- Net Servicos de Comunicacao S.A. (Bovespa: NETC4 NETC3; Nasdaq: NETC; Latibex: XNET) and Vivax S.A. (Bovespa: VVAX11) pursuant to Paragraph 4 of Art. 157 of Law 6.404/76, as amended, and CVM Instruction 358/02, as amended, and as a follow-up to the Material Facts published on October 12, 2006 and December 05, 2006, hereby announce to their shareholders, the market, and other interested parties, the following Material Fact:

On the decision issued on May 16, 2007, the National Telecommunications Agency ("ANATEL") authorized the acquisition of the control of Vivax by NET, pursuant to the terms and conditions set out in the Share Purchase Agreement and Other Arrangements signed by NET and Vivax's controllers shareholders on October 11, 2006.

The Restructuring steps, as defined bellow, will be submitted to the management of each company and then it should be approved by BTVC, Vivax and NET's shareholders at their respective shareholders' meetings, to be called at an opportune time. Dissenting shareholders, except for NET's preferred shareholders, are ensured withdrawal rights according to the parameters established by the applicable legislation.

The corporate structure to be implemented of Vivax's control acquisition will be the one indicated in item 4.2.1 of the Material Fact published on October 12, 2006, in other words, the incorporation of BTVC by Vivax and, subsequently, the incorporation of shares issued by Vivax to NET's capital, with the conversion of Vivax into NET's wholly-owned subsidiary ("Restructuring").

The exchange ratio indicated in item 3 of the Material Fact published on October 12, 2006 will be maintained and thus Vivax's shareholders will received 0.5678 preferred NET's share for each Vivax share, irrespective of class.

The valuation reports for NET and Vivax, as well as all the terms and conditions for the Restructuring will be released to the market at an opportune moment. 

DATASOURCE: Net Servicos de Comunicacao S.A.



CONTACT:  Marcio Minoru, (5511) 2111-2811, ,

Juliana Bajon, (5511) 2111-2721, , Andre

Carvalho, (5511) 2111-2983,  all of Net

Servicos de Comunicacao S.A.

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