VIVAX S.A. 4Q06 and 2006 Earnings Release

VIVAX S.A. 4Q06 and 2006 Earnings Release

AMERICANA, Brazil, Feb. 14 /PRNewswire-FirstCall/ -- VIVAX S.A. (Bovespa: VVAX11), or the "Company," Brazil's second-largest pay television operator in number of subscribers, and one of the country's main high-speed data service providers, announces today its earnings for the fourth quarter (4Q06) and the year 2006. The Company's consolidated financial statements have been prepared in conformity with Brazilian accounting practices.

HIGHLIGHTS IN THE QUARTER

-- 2006 was marked by strong growth in the subscriber base, presenting
excellent operating and financial results, the result of actions
implemented by the Company over the course of the year.

-- The number of pay television subscribers grew 11.7% in 2006, closing
the year with 328,297 subscribers. The high-speed data subscriber
base closed the year with 134,750 subscribers, with growth of 62.3%.

-- In 4Q06, the pay television services churn rate was 1.1%, and for
high-speed data it was 1.6%, with a 0.1 p.p. decrease in pay
television and 0.8 p.p. decrease in high-speed data compared to 4Q05.
This improvement is the result of actions implemented by the Company
over the course of 2006 and changes made to sales promotions starting
in 3Q06.

-- Consolidated average ARPU (average revenue per unit) reached R$102.23
per month in 4Q06, increasing 8.7% compared to the R$94.08 obtained in
4Q05.

-- Net revenue totaled R$321.5 million in 2006, representing growth of
19.4% compared to the R$269.2 million obtained in 2005.

-- The RGU (Revenue Generating Unit) ratio went from 1.21 in 2005 to 1.29
in 2006, representing a 6.6% increase in the year.

-- Consolidated EBITDA for 2006 was R$125.5 million, a result 21.3%
higher than the R$103.4 million achieved in 2005. The EBITDA margin
reached 39% in 2006, up 1.0 p.p. in relation to 2005.

-- The Company recorded net income of R$78.8 million in 2006, increasing
103.3% compared to the R$38.8 million obtained in 2005.

-- Net debt ended 2006 at R$127.4 million and the net debt/adjusted
EBITDA ratio ended 2006 at 1.0.

4Q06 Earnings Release Teleconference

Date:
Thursday, February 15, 2007

Times:
Portuguese (BR GAAP)
11 AM (Brasilia time zone)
8 AM (New York time zone)
Phone: (+55)11-4688-6301
Code: Vivax

English (BR GAAP)
12 noon (Brasilia time zone)
9 AM (New York time zone)
Phone: 1 (973)-935-8893
Code: 8357586

For further information, please access our website www.vivax.com.br/ir.

Source: VIVAX S.A.

CONTACT: Investor Relations: Gilson Roberto Granzier, Chief Financial
Officer and Investor Relations Director, +19-3471-8109, ri@vivax.com.br

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

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