Net Servicos Announces a US$ 37.7 million Net Income

Net Servicos Announces a US$ 37.7 million Net Income

SAO PAULO, Brazil, Aug. 3 /PRNewswire-FirstCall/ -- Net Servicos de Comunicacao S.A. (NASDAQ:NETC) (Bovespa: NETC4 and NETC3) (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 2Q05 financial results. The following financial and operating information, except where otherwise stated, is presented in U.S. GAAP on a consolidated basis.

Net Revenue ended the quarter at US$ 155.5 million, a 39.4% growth in comparison to the US$ 111.6 million recorded in 2Q04. Subscriber base increase, in both Pay-TV and broadband segments, in addition to the increase in PPV revenues generated the positive top line result.

Consolidated EBITDA totaled US$ 47.2 million, up by 62.4% in comparison to the US$ 29.0 million recorded in 2Q04.

Operating Income continues its growth trend, ending 2Q05 with a 120.5% increase, US$ 31.2 million versus US$ 14.2 million in 2Q04.

Following the conclusion of the final stage of the debt restructuring in 2Q05, Net Debt dropped to US$ 224.5 million, resulting in a Net debt to last 12 month EBITDA ratio of 1.42x.

The Company recorded a US$ 37.7 million Net Income, or US$ 0.02 per share, versus a US$ 24.6 million net loss in 2Q04. This is the Company's first financial result after the conclusion of the debt restructuring and without any significant adjustment related to the restructuring. The result recorded shows that the Company's goal of achieving an adequate capital structure and lower financial expenses was fully reached.

Conference Call - August 5 (Friday)
U.S. GAAP (in English): 12 pm (U.S. Eastern Time)
Phone: (+1 973) 409-9260
Code: 6319699 or Net Servicos

Corporate Law (in Portuguese): 10:30 am (U.S. 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)

Audio: http://www.ir.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.ir.netservicos.com.br/
http://www.mz-ir.com/

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