NETC Announces Its Results for the First Quarter of 2007

NETC Announces Its Results for the First Quarter of 2007

SAO PAULO, Brazil, April 19 /PRNewswire-FirstCall/ -- Net Servicos de Comunicacao S.A. (Bovespa: NETC3 and NETC4; Nasdaq: NETC; and Latibex: XNET), the largest multi-operator of cable services in Latin America with integrated services of Pay TV ("NET"), Digital Video ("NET Digital"), bidirectional broadband internet access ("NET Virtua") and voice ("NET Fone via Embratel"), today announces its results for the 1Q07.

The Company continues its strategy of accelerated growth, with focus on penetration increase over the existing infrastructure and return on the investments made to acquire new clients. Under this scenario, client bases of Pay TV and broadband rose by 18% and 84% respectively and the voice client base ended the quarter at 257,400 just 1 year after its launch.

In line with the organic growth, total revenues reached R$ 721.4 million, a 31.2% growth compared to the same period in the previous year With the costs and expenses under control, EBITDA reached R$ 151.6 million, 30.2% more than the R$ 116.4 million in 1Q06, with the margin improving to 27.0% from 26.5%

Selling expenses totaled R$ 50.5 million but, due to larger sales volume resulting from higher sales of combined products, the unitary sale cost declined. EBITDA before selling expenses was R$ 202.1 million, showing that the growth trend is exerting a momentary pressure on the Company's consolidated margin.

Income before Income Taxes and Equity in earnings was R$ 48.8 million, 80.8% more than the R$ 27.0 million result posted in 1Q06 and the Company's Net Income reached R$ 25.0 million, a 249.5% increase over the R$ 7.2 million in 1Q06.

The complete version of the release is available at the Company's website www.ir.netservicos.com.br

Conference Call - TODAY
English:
2:00 PM (EST)
Phone #: +1 973-935-8893
ID Code: 8650332

Portuguese:
1:00 PM (EST)
Phone #: +55 11 2101-4848
ID Code: Net Servicos

Live Webcast and earnings release: http://www.ir.netservicos.com.br/

First Call Analyst:
FCMN Contact: renata.mattos@mz-ir.com

Source: NETC

CONTACT: Net Servicos Investor Relations - Marcio Minoru,
+55-11-2111-2811, minoru@netservicos.com.br; Juliana Bajon, +55-11-2111-2721,
juliana.bajon@netservicos.com.br; Andre Carvalho, +55-11-2111-2983,
andre.carvalho@netservicos.com.br

Web site:

http://www.ir.netservicos.com.br/

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