Net Servicos de Comunicacao S.A. and Embratel Sign Telecommunications Service Agreement

Net Servicos de Comunicacao S.A. and Embratel Sign Telecommunications Service Agreement

SAO PAULO, Brazil, Feb. 8 /PRNewswire-FirstCall/ -- Net Servicos de Comunicacao S.A. (NASDAQ:NETC) (Bovespa: NETC4 NETC3) (Latibex: XNET) ("NET") the largest Pay-TV multi-service operator in Latin America and an important provider of bi-directional broadband Internet access (Virtua), informs that as announced in the Relevant Notice dated November 22, 2005, NET and Embratel, entered into a telecommunications service agreement ("Service"). During the implementation process the companies evolved to a partnership model that includes the sharing of operating results with the objective of providing triple play (video, broadband and voice) service for potential clients that are covered by NET's bidirectional network, optimizing synergies.

This development is consistent with NET's initial strategy, as it will offer triple play without increasing the company's investments in infrastructure installed at the consumers' residence for voice service. NET will also manage the operation, which should strengthen its video and broadband businesses. Embratel maintains its growth strategy in the local telephony residential market using NET's bi-directional network, and sales and customer service expertise for that market segment. As a result, at this date, the companies celebrated a Memorandum of Understanding ("MOU") that outlines the new business model for delivery of this service.

This MOU was prepared envisioning the new service offering, joining Embratel's expertise in rendering voice service and NET's expertise in the residential market it operates. NET will be responsible for the following processes: sales, installation, call center and customer relationship. Embratel, will provide telecommunications infrastructure investment.

This partnership between NET and Embratel confirms NET's commitment of connecting customers through its cable network, offering an integrated portfolio of high-quality services.

For additional information, please contact Net Servicos Investor Relations:

Marcio Minoru
Phone +011-(5511)-2111-2811
E-mail: minoru@netservicos.com.br

Sandro Pina
Phone +011-(5511)-2111-2721
E-mail: sandro.pina@netservicos.com.br

Source: Net Servicos de Comunicacao S.A.

CONTACT: Marcio Minoru, +011-55-11-2111-2811, or
minoru@netservicos.com.br, or Sandro Pina, +011-55-11-2111-2721, or
sandro.pina@netservicos.com.br, both of NETC

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

-------
Profile: intent