Brasil Telecom Announces Gross Revenue of R$ 4.0 Billion and EBITDA of R$ 972.7 Million in 2Q07

BRASILIA, Brazil, July 31  /PRNewswire-FirstCall/ -- Brasil Telecom Participacoes S.A. (BOVESPA: BRTP3/BRTP4; NYSE: BRP) registered consolidated EBITDA of R$972.7 million in 2Q07, 2.2% and 19.6% higher than 1Q07 and 2Q06, respectively. Consolidated EBITDA margin in 2Q07 was 35.5%. Consolidated net revenue reached R$2,743.3 million in 2Q07, 11.9% higher than 2Q06, and the Company's net income amounted to R$145.5 million.

Mobile telephony's EBITDA was positive, totaling R$5.2 million in 2Q07, with an EBITDA margin of 1.2%.

During 2Q07, Brasil Telecom added 69.9 thousand ADSL accesses to its plant, totaling 1,453.4 thousand accesses in service at the end of June 2007, which represents an increase of 5.1% and 25.9% in comparison with 1Q07 and 2Q06, respectively. The ADSL accesses represented 17.9% of Brasil Telecom's plant in service at the end of 2Q07, compared to 12.3% in 2Q06 and 16.7% in 1Q07. The Company also grew in data transmission services for the corporate market.

The Internet Group, which holds Brasil Telecom's Internet services, reached 1.3 million broadband clients in all of Brazil in 2Q07, which represents an increase of 42.3% and 7.9% in relation to 2Q06 and 1Q07, respectively.

Gross revenue from data communication and other services amounted to R$686.0 million in 2Q07, an increase of 6.7% in comparison with the last quarter and 28.5% higher than in the 2Q06. ADSL revenue totaled R$312.7 million in 2Q07, representing 45.6% of the total data communication revenue share.

BrT Mobile reached 3,768.6 thousand mobile accesses in service at the end of 2Q07, which represents a net gain of 130.5 thousand accesses this quarter. BrT Mobile maintained its market share of 12.9% in Region II at the end of 2Q07. Mobile telephony's non-consolidated gross revenue in 2Q07 totaled R$609.1 million, an increase of 62.6% in relation to 2Q06.

Operating costs and expenses in 2Q07 totaled R$2,397.3 million, stable in relation to 1Q07 and 3.9% higher than the same period last year, due to an increase in inter-connection expenses and credit provision of doubtful accounts, which was partly compensated by a reduction in controllable expenses, such as: personnel, material, subcontracted services, and advertising and marketing. The relation between operating costs and expenses (excluding depreciation and amortization) and gross revenue was 44.6%, 0.6 p.p. below the 45.2% of the same period last year.

In 2Q07, Brasil Telecom's investments totaled R$302.6 million. Net debt at the end of 2Q07 was R$1,260.0 million, 34.4% less than what was registered in June 2006.

  Brasil Telecom Contacts:
  Favia Menezes
  Investor Relations
  (55 61) 3415-1140
  

  Media Relations
  Cesar Borges
  (55 61) 3415-1378
  



The full version of the 2Q07 release is available at Brasil Telecom's IR website: http://www.brasiltelecom.com.br/ir 

DATASOURCE: Brasil Telecom S.A.



CONTACT:  Favia Menezes, Investor Relations, +011-5561-3415-1140,

, or Cesar Borges, Media Relations, +011-55-61-3415-

1378, , both of Brasil Telecom



Web site:  http://www.brasiltelecom.com.br/ 

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