NETC Announces Notice to the Market

NETC Announces Notice to the Market

SAO PAULO, Brazil, May 16 /PRNewswire-FirstCall/ -- Net Servicos de Comunicacao S.A. (NASDAQ:NETC) (Bovespa: NETC4 NETC3) (Latibex: XNET), the largest Pay-TV multi-service operator in Latin America, and an important provider of bi-directional broadband Internet access (Virtua), announces the following notice to the market:

On May 9, 2005, the Company held an auction to sell the shares that were not subscribed under the scope of the Company's private capital increase. In this auction, the common shares ("ON shares") were sold at R$ 0.51 per share and the preferred shares ("PN Shares") at R$ 0.63 per share, concluding, then, the last stage of the capital increase. As the total amount raised through the capital increase was higher than the amount necessary for the conclusion of its financial restructuring, the Company will amortize, as from the present date, a total of R$ 53.5 million of its new debt instruments principal amount. Thus, after such settlement, the Company's total debt will amount to approximately R$ 655 million and its net debt, to approximately R$ 392 million, compared to R$ 939 million and R$ 727 million, respectively, posted by the end of 1Q05.

The Company hereby definitely concludes its financial restructuring process started in December 2002, having fully achieved its initial goals.

For additional information, please contact Net Servicos Investor Relations:

Marcio Minoru
phone: (5511) 2111-2811
e-mail: minoru@netservicos.com.br

Sandro Pina
phone: (5511) 2111-2721
e-mail: sandro.pina@netservicos.com.br

Source: Net Servicos de Comunicacao S.A.

CONTACT: Investor Relations, Marcio Minoru, +011-5511-2111-2811, or
minoru@netservicos.com.br, or Sandro Pina, +011-5511-2111-2721, or
sandro.pina@netservicos.com.br , both of Net Servicos de Comunicacao S.A.

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

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