Net Servicos Announces 1Q05 Financial Results

Net Servicos Announces 1Q05 Financial Results

SAO PAULO, Brazil, May 3 /PRNewswire-FirstCall/ -- Net Servicos de Comunicacao S.A. (Nasdaq: NETC; Bovespa: NETC4 and NETC3; and Latibex: XNET), the largest Pay-TV multi-service operator in Latin America, and an important provider of bi-directional broadband Internet access (Virtua), announced today its 1Q05 financial results. The following financial and operating information, except where otherwise stated, is presented in U.S. GAAP on a consolidated basis.

* Net Revenues reached US$ 137.6 million, a 24.2% growth versus the US$ 110.8 million recorded in 1Q04, showing that the organic growth is resulting in steady revenue growth for the Company. * The Company recorded quarterly consolidated EBITDA of US$ 43.8 million, a 40.0% increase in comparison to the same period of 2004. * Operating Income (EBIT) grew by 71.7%, from US$ 17.3 million in 1Q04 to US$ 29.7 million this quarter. * Consolidated Net Debt by the end of the quarter was US$ 340.5 million, a 30.0% increase in comparison to the US$ 261.9 million net debt recorded by the end of the first quarter of 2004. * The Company's Net loss was of US$ 6.5 million, an upturn in comparison to the US$ 15.0 million net loss recorded in the same period of the previous year.

Conference Call -- May 4 (Wednesday) US GAAP (in English): 9:00 am (US Eastern Time) Phone: (+1 973) 582-2706 Code: 6029067 or Net Servicos

Corporate Law (in Portuguese): 10:30 am (US Eastern Time) Phone: (+55 11) 2101-1490 Code: Net Servicos

Simultaneous Webcast (audio): http://www.ir.netservicos.com.br/

Full Release: http://www.ir.netservicos.com.br/

For additional information, please contact Net Servicos Investor Relations: Marcio Minoru (phone (5511) 2111-2811 or e-mail: minoru@netservicos.com.br) and Sandro Pina (phone (5511) 2111-2721 or e-mail: sandro.pina@netservicos.com.br)

Source: Net Servicos de Comunicacao S.A.

CONTACT: Investor Relations: Marcio Minoru, +5511-2111-2811, minoru@netservicos.com.br, Sandro Pina, +5511-2111-2721, sandro.pina@netservicos.com.br, both of Net Servicos de Comunicacao S.A.

Web Site: http://www.mz-ir.com/ http://www.ir.netservicos.com.br/

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