Vivax 3Q06 Earnings Release

Vivax 3Q06 Earnings Release

AMERICANA, Brazil, Nov. 7 /PRNewswire-FirstCall/ -- VIVAX S.A. (Bovespa: VVAX11), or "Company", the second-largest cable TV operator in Brazil in number of subscribers and one of the leading broadband internet service providers in Brazil, announces today its financial results for third quarter 2006 (3Q06). The Company's consolidated financial statements are prepared in accordance with Brazilian accounting practices and standards established by the Brazilian Securities Commission (CVM) ("Brazilian accounting practices").

HIGHLIGHTS

-- 3Q06 was characterized by excellent operating results, aligning strong
subscriber growth with a significant reduction in the churn rate, which
has declined to the lowest levels since the start of the Company's
operations.
-- With a net increase of 7,500, the pay TV subscriber's base grew
12.8% compared to 3Q05, closing 3Q06 with 320,219 subscribers.
-- With net additions of 14,800, the broadband internet
subscriber's base had record growth in 3Q06, closing the quarter with
121,023 subscribers.
-- In relation to 3Q05, the broadband internet subscriber base grew 64.3%.
In 3Q06, the churn rate for pay TV services was 1.1%, and 1.8% for
broadband internet, representing reductions of 0.3 p.p. and 0.6 p.p.
compared to 3Q05, respectively. This improvement is the result of
actions implemented by the Company over the course of 2006, and changes
in sales promotions in 3Q06.
-- Consolidated adjusted EBITDA for 3Q06 was R$29.3 million, 6.9% higher
than the R$27.4 million achieved in 3Q05. The EBITDA margin reached 37%
in 3Q06, down 3 p.p. in relation to 3Q05.
-- Net income was R$65.7 million in 3Q06, increasing 216.9% compared to
the R$20.7 million result in 3Q05.
-- Net debt decreased 56.6% in relation to 3Q05, and rose 0.2% from 2Q06,
closing 3Q06 at R$130.1 million.

3Q06 Earnings Release Conference Call

Wednesday, November 8, 2006

English
11:00 am (Brasilia time)
08:00 am (EST)
Phone: 1 (973) 935-8893
Replay: 1 (973) 341-3080
Code: 8013259

Portuguese
10:00 am (Brasilia time)
07:00 am (EST)
Phone: 55-11-2101-4848
Replay: 55-11-2101-4848
Code: Vivax

For further information, please visit our website: http://www.vivax.com.br/ir

IR Contact
Gilson Roberto Granzier
CFO and Investor Relations Officer
Phone: 55-19-3471-8917

Ana Paula Z. Ribeiro
Investor Relations Analyst
Phone: 55-11-5506-0200
E-mail: ri@vivax.com.br

First Call Analyst:
FCMN Contact: ricardo.bettoni@mz-ir.com

Source: Vivax S.A.

CONTACT: Gilson Roberto Granzier, CFO and Investor Relations Officer,
+011-55-19-3471-8917, or Ana Paula Z. Ribeiro, Investor Relations Analyst,
+011-55-11-5506-0200, or ri@vivax.com.br, all of Vivax

Web site: http://www.vivax.com.br/ir

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