•      Strong increase in commercial activity in all areas of operations, with 4Q03 seeing the highest quarterly organic growth in Telefónica Móviles Group’s history:

•      Positive results of the Christmas campaigns, with net adds of over 4.2MM customers in 4Q03.

•      In December alone, Telefónica Móviles increased its customer base by over 2.7MM.

•      Telefónica Móviles ended 2003 with over 52MM managed customers, an increase of over 10.6MM customers compared to 2002 (+25.7%).

•      The Group´s operators lead market growth in their areas of operations.

•      Consolidation of leadership in Spain, both in terms of customers and traffic:

•      Against a particularly commercially active backdrop, Telefónica Móviles España (TME) recorded net adds of 553 thousand customers in 4Q03.

•      In 2003, TME’s customer base increased by 7% to 19.7MM customers, with a significant advance in contract weighting to 40.3% (35.2% in 2002).

•      Solid growth in usage ratios with year over year growth of 18.2% in the total of minutes carried on TME’s network.

•      Sustained increase in ARPU, which in 2003 was 3.7% higher than in 2002, boosted both by higher voice (+3.0%) and data (+8.8%) ARPU.

•      In Brazil, Vivo beat its competitors with the launch of the Christmas campaign and set the market pace:

•      Vivo recorded net adds of approximately 2.2MM new customers in 4Q03, with an estimated share of adds of 50.2% in the quarter, despite the increasing competitive environment.

•      Commercial offer based on leadership in innovation, with significant progress in data services, which already account for 3.3% of VIVO’s service revenues in 4Q03.

•      Telefónica Móviles México beat all commercial targets set initially, achieving a sound position to capture a significant part of the potential growth in the Mexican market:

•      Sharp rise in commercial activity in the last months of 2003, acquiring close to 580 thousand new customers in December and 725 thousand customers in 4Q03 (191 thousand in 3Q03).

•      GSM coverage in 96 cities in December 2003.

•      The number of points of sale was tripled from the beginning of the year, exceeding 6,200 points at the end of the year.

•      Acceleration in year-over-year growth in operating revenues to 10.2% (+7.0% in 9M03), with a total volume of €10,070MM in 2003:

•      Solid service revenues growth (+8.5% vs. 2002 compared to +7.1% in 9M03), despite the strong growth in customer base.

•      Assuming constant exchange rates and excluding the impact of the acquisition of TCO, revenues would have grown 14.1% in 2003 year-over-year.

•      TME’s operating revenues increased by 10.7% vs. 2002, driven by the positive performance of service revenues (+9.9% vs. 9.1% in 9M03).

•      The operating revenues from consolidated Latin American operators show a year-over-year increase, in euros, of 12.1%, and 27.7% stripping out the impact of exchange rates and the incorporation of TCO to the consolidation perimeter.

•      Significant increase in EBITDA to €4,463MM in 2003 (+19.5% vs. 2002):

•      Sustained growth in EBITDA in 4Q03 (+22% vs. 4Q02), despite increased commercial activity.

•      Enhanced operating efficiency, with a consolidated EBITDA margin of 44.3% in 2003, 3.4 p.p. higher than in 2002.

October-December

•      Consolidated net income of €1,608MM in 2003, enabling the company’s Board of Directors to propose payment of a gross dividend of €0.1838 per share against 2003 results:

•      Excluding the impact of the net extraordinary provisions booked in 2002, net income would have increased by over €202MM in 2003 (+14.4% vs. 2002) boosted by higher operating results.

•      TME’s Board of Directors will propose the payment of a gross dividend of €0.1838 per share for approval at the next Annual General Shareholders’ Meeting. The proposed dividend represents a total amount of €796MM, an increase of 5% compared to the previous year, in line with the company’s commitment. The dividend payment date proposed is June 2004.

•      Growing internal cash generation and financial strength:

•      High efficiency in capex, amounting to 12% of consolidated revenues, despite the rollout of the GSM network in Mexico.

•      Free cash flow¹ generation in 2003 was almost 21% higher than in 2002 amounting to €2,184MM.

•      Consolidated net financial debt fell by 27% compared to 2002, in spite of the changes to the Group’s consolidation perimeter, which have been more than offset by internal cash flow generation.

•      Ratio of financial net debt to EBITDA of 1.1x in 2003, vs. 1.9x in 2002.

October-December

The financial statements for 2003 reflect the real composition of the Telefónica Móviles Group, with no difference from the corresponding information for this year submitted to the CNMV (the Spanish SEC).

The financial statements and management discussions for 2002 appearing in this report refer to proforma data (Combined Pro-forma Financial Statements), which could give rise to differences with respect to the corresponding information submitted to the CNMV. For a correct understanding of this report, a reconciliation of the pro-forma financial information for 2002 and that included in the public information submitted on a regular basis to the CNMV has been carried out.

The financial statements for 2002 were prepared on the assumption that all companies in which Telefónica Group held a stake as of 1 January 2002, and which as of 31 December 2002 had been transferred and/or sold to Telefónica Móviles, are included in Telefónica Móviles Group financial statements from the moment of their incorporation to Telefónica Group.

The consolidated financial statements for Telefónica Móviles Group do not include the mobile operators of Chile and Puerto Rico managed by Telefónica Móviles.

As regards changes in the consolidation perimeter in the last 12 months, we would highlight the following:

•      Telefónica Móviles’ stake in the share capital of Grupo Pegaso Telecomunicaciones, acquired in September 2002, has been fully consolidated since 4Q02.

•      On 27 December 2002, Brasilcel, the Joint Venture with Portugal Telecom in which each of the partners has a 50% stake, was constituted by transferring 100% of both Groups’ direct and indirect shareholdings in various Brazilian cellular operators –TeleSudeste Celular, CRT Celular and TeleLeste Celular by Telefónica Móviles and Telesp Celular Participaçoes and an additional stake in CRT Celular by Portugal Telecom–. From this date Telefónica Móviles Group’s financial statements include the consolidation of Brasilcel² using the proportional integration method.

•      After the agreement reached with Terra Lycos in 1Q03 for the restructuring of Terra Mobile, Telefónica Móviles consolidates 100% of this company in its financial statements. This company had already been fully consolidated since September 2001.

•      After the acquisition of 61.10% of the ordinary shares with voting rights –equivalent to 20.37% of the total share capital– of Tele Centro Oeste Celular Participaçoes, S.A. (“TCO”) through Telesp Celular Participaçoes, S.A., TCO has been fully consolidated in Brasilcel’s financial statements since 1 May 2003.

•      The sale of 100% of Telefónica Mobile Solutions’ to TS Telefónica Sistemas SA, a company belonging to Telefónica Group, took place in June, with effect from March 2003. Since that date, it is not integrated within Telefónica Moviles’ consolidation perimeter.

•      In July 2003 Medi Telecom carried out a capital increase, as a result of which Telefónica Móviles increased its stake to 32.18%.

•      Following the acceptance of the takeover bid by TCP on TCO’s ordinary shares with voting rights held by minority shareholders, TCP has increased its shareholding in TCO to 86.58% of ordinary shares –which represents 28.87% of total share capital (not including treasury stock).

•      In December, 2003, Telefónica Móviles sold its Austrian subsidiary, 3GMobile Telecommunicans GmbH, to the mobile operator Mobilkom Austria. As of that date, the subsidiary no longer forms part of the consolidation perimeter of the Group.

October-December

For an easier understanding of Telefónica Móviles’ financial statements, the economic stakes held by the Company in each of its subsidiaries, along with the consolidation method used in its consolidated financial statements in each period, are provided.

Economic ownership

Consolidation method

4Q 2003

T. Moviles España

Brasilcel ¹

TCP Argentina

TEM Perú

T. Móviles México ²

TEM El Salvador

TEM Guatemala

Group 3G (Germany)

IPSE 2000 (Italy)

3G Mobile (Austria) ³

3G Mobile AG (Switzerland)

Medi Telecom ⁴

TM Interacciona

M-Solutions ⁵

Mobipay España

Mobipay International

TmAs

¹        Joint Venture which fully consolidates TeleSudeste Celular, Celular CRT, TeleLeste Celular, Telesp Celular Participaçoes. From May 2003 Telesp Celular Participaçoes includes the stake acquired in Tele Centro Oeste Participaçoes.

Brasilcel’s stake in subsidiaries: TeleSudeste Celular 83.88%; Telesp Celular Participaçoes 65.12%; CRT Celular 49.57%; TeleLeste Celular 27.7% and Tele Centro Oeste Participaçoes 18.8%.

²        From December 2002, and backdated to September 2002, Telefónica Móviles México has been fully consolidated.

³        After the disposal of 3G Mobile to Mobilkom Austria, with effect from December 2003 this company is not integrated within Telefónica Móviles’ consolidation perimeter.

⁴        Telefónica Móviles’ stake increased to 32.18% after Medi Telecom’s capital increase in July 2003.

⁵        After the disposal of M-Solutions, with effect from March 2003, this company is not integrated within Telefónica Móviles’ consolidation perimeter.

October-December

Average exchange rates

Argentina (€ / Argentinean Peso)

Brazil (€ / Brazilian Real)

El Salvador (€ / Colon)

Guatemala (€ / Quetzal)

Mexico (€ / Mexican Peso) ¹

Peru (€ / Peruvian Nuevo Sol) ¹

¹        Calculated as USD/ local currency closing exchange and cumulative €/ USD average exchange

Closing exchange rates

Argentina (€ / Argentinean Peso)

Brazil (€ / Brazilian Real)

El Salvador (€ / Colon)

Guatemala (€ / Quetzal)

Mexico (€ / Mexican Peso)

Telefónica Móviles Group

Conciliation with the Consolidated Income Statement

Audited figures

Operating revenues

EBITDA

Operating profit

Net income before minority interests

Net income

Recurring Net income ¹

October-December

Telefónica Móviles Group

Consolidated Income Statement

Audited figures

%

Change

%

Change

Operating revenues

EBITDA

Operating profit

Income before taxes

Net income before minority interests

Net income

Recurring Net income ¹

Free Cash Flow ²

Outstanding shares (million)

Net income per share

Recurring Net Income per Share ³

FCF per share ⁴

Proposed dividend per share ⁶

¹        Excludes the impact of net extraordinary provisions associated with the write-downs of assets and the provision for associated restructuring costs accounted in 2002.

²        Free Cash Flow = EBIT (1- t) + Amortization - Capex - Capitalized opex

³        In 2002, net Income before extraordinary provisions, net of taxes, due to write-downs of assets and the provision for associated restructuring costs, per share.

⁴        Free Cash Flow per share

⁵        Proposed dividend, and approved by the Annual General Shareholders’ Meeting, was payed in june 2003

Telefónica Móviles reported net income in 2003 of €1,607.9MM vs. losses of €3,724.5MM registered in 2002. Excluding the impact of the net extraordinary provisions booked in 2002, the Group would have reported a year-over-year net income increase of 14.4%.

These results are the consequence of a solid operating performance in a year shaped by strong commercial activity in main areas of operations, especially in the second half of the year, reflecting Telefónica Móviles’ high organic growth profile.

Strong growth in operating revenues and EBITDA, coupled with capex efficiency, enabled consolidated free cash flow generation³ in the year of €2,184MM (+21% vs. 2002), despite the rollout of the Group’s GSM network in Mexico along 2003.

Key aspects of these results are listed below:

•     Sharp growth in operating revenues of 10.2% year-over-year, to €10,070MM for the year. We would highlight the acceleration in growth of operating revenues since the beginning of the year, with an increase in 4Q03 of 19.7% vs. 4Q02 compared with year-over-year growth of 15.4% in 3Q03.

Assuming constant exchange rates and excluding the impact of the acquisition of TCO, revenues would have grown 14.1% in 2003 year-over-year.

(3)    Consolidated Free Cash Flow = EBIT (1- t) + Amortization - Capex - Capitalized opex

Consolidated revenue growth was mainly driven by the increase in the customer base. Telefónica Móviles increased its managed customer base by more then 10.6MM in 2003, a year-over-year growth above 25% (15.8% excluding TCO). Noteworthy was the strong commercial activity during the Christmas campaign in all countries of operations, achieving net adds of over 4.2MM customers in 4Q03, marking the largest quarterly organic growth in the Group’s history. Telefónica

October-December

Móviles ended 2003 with more than 52MM managed customers.

Growth of the customer base and higher traffic carried on the Group operators’ networks led to an 8.5% year-over-year increase in service revenues in 2003 (vs. +7.1% in 9M03) to €8,872MM.

By geographical areas, operating revenues at Telefónica Móviles España (TME) totalled over €7,495MM, a year-over-year increase of 10.7% in 2003 and 16.4% in 4Q03, driven by the strong commercial activity in the last quarter. Service revenues performed strongly, increasing 9.9% in 2003 (+9.1% in 9M03 and 12.4% in 4Q03) driven by growth in both the customer base (+6.8%) and ARPU (+3.7%).

Operating revenues from the Latin American operators accounted for 26% of Group revenues in 2003, and showed a year-over-year increase of 12.1% in euros. Excluding the impact of exchange rates and the incorporation of TCO into the Group’s consolidation perimeter, these revenues would have shown growth of 27.7% vs. 2002.

•        Control of operating expenses, which grew nearly 5 p.p. less than revenues despite the increased   commercial activity. We would highlight the decrease in personnel expenses, which fell 11%, representing   4.8% of operating revenues in 2003, compared with 6.0% in 2002.

•        Group consolidated EBITDA in 2003 reached €4,463MM, 19.5% higher than in 2002. Excluding the   impact of exchange rates and the incorporation of TCO into the Group’s consolidation perimeter, EBITDA   would have shown growth of 20.6% vs. 2002.

With EBITDA growing faster than revenues, the consolidated EBITDA margin advanced 3.4 p.p. from 2002 to 44.3%.

On a quarterly basis, EBITDA in 4Q03 was 22.0% higher than in 4Q02, leading to an EBITDA margin of 39.6%, an advance in nearly 1 p.p. vs. 4Q02, despite registering 5.2 times more net adds in 4Q03. The decline in the margin in 4Q03 vs. 3Q03 was due to increased commercial activity in the last quarter of the year.

EBITDA for TME for the year 2003 rose 12.9%, leaving an EBITDA margin of 52.6% (+1.p.p. in the last 12 months).

EBITDA for the Group’s consolidated Latin American subsidiaries, assuming constant exchange rates and excluding TCO’s incorporation into the Group’s consolidation perimeter, rose 4.7% vs. 2002, fuelled by higher EBITDA in Brazil and Argentina, which offset the negative contribution from operations in Mexico after the heavy commercial efforts made during the year –brand launch, increased distribution channel, introduction of GSM service. However, in euros they show a year-over-year decline of 2.3% (-13.6% in 9M03).

As regards non-operating items, we would highlight:

•        Profit from associated companies improved, as losses from companies consolidated by the equity   method decreased by 49%, mainly due to the 61% decrease in losses attributable to the Group through its   stake in IPSE 2002 (-€38MM) and the improvement in Médi Telecom results (-€38MM attributable to   Telefónica Móviles; -31% vs. 2002).

•        Increase of 19.6% in net financial expenses, due mostly to changes in the consolidation perimeter. It must   also be remembered that in 1H02 the financial expenses associated with the acquisition of a UMTS licence in   Germany were capitalized.

Consolidated net financial debt at the end of December 2003 stood at €5,087MM, 27% lower than at the end of 2002. This was mostly the result of strong internal cash flow generation, despite the changes in the Group’s consolidation perimeter in the last 12 months.

Proportionate net financial debt at the end of the year stood at €5,799MM (-25% vs. December 2002).

•      Increase in goodwill amortisation (+16.8% vs. 2002) due to the changes in the consolidation perimeter mentioned above.

•      It must be highlighted that no significant extraordinary items were booked in 2003.

In 2003, capex for Telefónica Móviles totalled €1,214MM, a 32% year-over-year increase, mostly deriving from the rollout of the GSM network in Mexico, which required capex of €483MM. Capex in other countries of operations was virtually unchanged from the year before.

Regarding capitalized expenses in 2003, only the provision for the spectrum fee assigned to Telefónica Móviles España for the future operation of UMTS technology was recorded (€22.4MM).

October-December

The following significant events took place during the last few months:

•      In December, TME announced the elimination of the MoviLine analogue service from December 31, 2003.

•      In Mexico, a decree was published in December reforming the Law on the Special Tax on Production and Services, by virtue of which telecommunications services are no longer liable for this tax.

October-December

% Change

% Change

% Change

Spain and Mediterranean Basin

Subscribers

Pops

Latin America

Subscribers

Pops

TOTAL

Subscribers

Pops

¹        Includes total customers from all operators in which Telefónica Móviles holds an economic participation. 2003 figures include TCO. Excludes Chile and Puerto Rico.

²        Total subscribers plus the subscribers of managed companies in Chile and Puerto Rico.

³        Total subscribers weighted by the economic interest held in each company. In 2003 includes the equity subscribers in TCO. Excludes Chile and Puerto Rico.

Results by geographic regions

In million Euros

%

Change

%

Change

%

Change

%

Change

Spain

Latinamerica ^1,2

Rest and intragroup sales ³

TOTAL

¹        Includes financial data from Grupo Pegaso Telecomunicaciones from September 2002.

²        2003 figures include data for Brasilcel-the Joint Venture with Portugal Telecom- including TCO from May 2003. 2002 figures include data for TeleSudeste Celular, CRT Celular and TeLeste Celular.

³        After the halting of UMTS operations in Europe, for comparison purposes financial data of 2003 and 2002 are included in this item.

October-December

Spain

•      Intensified commercial efforts in TME, which has led the growth in the market in 4Q03, with net adds close to 553 thousand customers.

•      Sustained results from prepaid to contract migration and customer loyalty programs.

•      Solid growth in voice usage and positive evolution in data services revenues, leading to a year-over-year growth over 3% in ARPU.

•      Consolidation of the acceleration in service revenues’ growth, boosting operating revenues.

•      Excellence in operations.

T. Móviles España

%

Change

Subscriber Data

Total subscribers

Prepaid

Contract

Equity Subscribers

Audited figures

In million Euros

%

Change

%

Change

Financial Data

Operating revenues

EBITDA

EBITDA Margin

In 2003, the Spanish cellular market grew by nearly 4MM new customers, reaching more than 37.5MM customers by the end of 2003 (+12% vs. 2002). This led to an estimated penetration rate of 88.1% at the end of 2003, 8.3 p.p. higher than in 2002.

Particularly noteworthy was the fact that approximately one-third of the annual customer growth came in 4Q03.

Against this backdrop, TME ended 2003 with more than 19.6MM customers, 7% more than in 2002, reinforcing its position as the undisputed leader of the Spanish market, with an estimated market share of 52.4%. In 4Q03, the Company stepped up its commercial efforts, registering net adds of 553 thousand customers, leading the market growth in the quarter.

As regards prepaid to contract migrations, the volume in 4Q03 (more than 357 thousand) was the largest in the Company’s history, with total migrations for the year of nearly 1.2MM (+63% vs. 2002). As a result, contract customers at the end of the year represented 40.3% of the total, 5.2 p.p. more than in 2002.

As for customer loyalty initiatives, the volume of handset upgrades in 4Q03 was slightly over 1 million, 11% more than in 4Q02, taking the total number for the year to 4MM (+71% vs. 2002). Customer loyalty performance in 2003 was underpinned by the acceleration in handset upgrades made by contract customers, who have increased their upgrades through the MoviStar Plus loyalty points program by 85% vs. 2002. Prepaid customers’ handset upgrades through the Estrena program have increased by nearly 60%.

Alongside this commercial performance was the consolidation of strong growth in usage seen throughout the year. In 4Q03, traffic carried on TME’s networks exceeded 9.8MM minutes (+17% vs. 4Q02), taking total annual traffic to 37.7MM minutes, 18.2% more than in 2002.

As for customer usage ratios, 2003 saw the beginning of a clearly upward trend in MOU

October-December

after remaining stable in 2002. In 4Q03, MOU continued to grow strongly, reaching 118 minutes, a year-over-year increase of 10% from 4Q02. MOU for the whole year was 116 minutes, 10% higher than in 2002. The positive performance of outgoing MOU must be highlighted, it registered double-digit growth in all four quarters and totalled 77 minutes for the full year (+13% vs. 2002). By segments, prepaid MOU stabilised in 2003, despite the sharp increase in the rhythm of migrations, whilst contract MOU increased by 3% vs. 2002.

As for short messages, we must highlight the high level of usage registered in December when, coinciding with the Christmas season, 52% of TEM’s customers sent at least one short message, enabling the penetration rate to improve by 4 p.p. from previous months. For the year, TME´s customers network carried a total of 9,302 MM SMS (vs. 8,375 MM SMS in 2002).

We would also highlight the significant increase seen in other kinds of data services in the last months of the year, which among others led to an increase of 5 p.p. in the percentage of non-SMS revenues on total data revenues to 8.8% for 2003.

Meanwhile, from February 13^th, 2004, TME offers its corporate clients the first high speed (up to 384 Kbit/s) third generation data transmission service to be provided by a wireless operator in Spain, ‘Oficin@MoviStar UMTS’. The ‘Oficin@ MoviStar UMTS’ pack contains a PCMCIA UMTS/GPRS card, including a USIM MoviStar card.

As a result of these efforts, total data revenues in 4Q03 increased by 17% from 4Q02 to nearly €220MM. The total for full year 2003 amounted €844MM (+15% vs. 2002). Data ARPU in 4Q03 reached €3.8, with growth accelerating throughout the second half of the year. Total data ARPU for 2003 was €3.7 (+8.8% vs. 2002).

Overall, ARPU for TME reversed its annual trend in 2003, registering year-over-year growth for the first time in the Company’s history. Total ARPU for 2003 was €29.7 (3.7% more than in 2002). ARPU in 4Q03 was €30.1, 7% more than in 4Q02. The decline with respect to 3Q03 was due to seasonal factors of the business and to the decline in termination fees.

Accordingly, and even despite the impact of the increased commercial activity in 4Q03, TME has delivered a solid set of earnings:

•      Operating revenues in 4Q03 stood at €2,028MM (+16% vs. 4Q02), taking the total for the year to nearly €7,500MM, 10.7% more than in 2002.

•      Service revenues advanced 9.9%, while handset sales rose 17%, fuelled by the increased commercial activity.

•      As regards the key cost items, the weight of subscriber acquisition and retention costs over operating revenues stood at 7.8% in 4Q03, and 7.1% for 2003 (a decline of 0.8 p.p. from 2002).

•      EBITDA in 4Q03 stood at €974MM, (+10% vs. 4Q02). EBITDA for the year was €3,941MM, a year-over-year increase of 12.9%. This led to an EBITDA margin for 2003 of 52.6%, 1 p.p. higher than in 2002, confirming TME’s position as one of the sector’s most efficient wireless operators.

•      The quarterly reduction in the EBITDA margin in 4Q03 from 3Q03 is a logical result of the underlying impact of the greater commercial efforts made in the last quarter of the year for the Christmas campaign.

•      Capex in 2003 totalled €521MM, in line with the figure for 2002 and equivalent to 7.0% of operating revenues. It must be mentioned that despite the strong advance in traffic, the Company follows an active management program in order to guarantee adequate quality levels.

Telefónica Móviles España

Operating Revenues (% over total)

Customer revenues

Interconnection

Handset sales

Roaming-in

Other

October-December

Morocco

•      Strong advance in customer base and increase in market share.

•      Improved profitability with growth in absolute EBITDA (+173%) and in margins vs. 2002.

•      First year with positive operating cash-flow.

Médi Telecom ended 2003 with 2.060MM customers, 28.7% more than in 2002. This marks an acceleration in growth from previous quarters (+23.4% in 3Q03) and leads to an estimated market share of 43% (up from 41% in 2002).

We would highlight the improvement in the financial results, fuelled by the growth in the customer base and by cost control, setting EBITDA margin in 4Q03 at 38.2% and at 35% in full year 2003. In absolute terms, EBITDA amounted €94MM in 2003, from €34.5MM in 2002 (+173%)

The year 2003 was also the first of positive operating cash flow for Médi Telecom, with EBITDA–capex standing at €33MM, thanks to both higher operating results and capex rationalization.

October-December

Latin America

Latin America

%

Change

Subscriber Data

Total subscribers ¹

Prepaid

Contract

Equity Subscribers

Audited figures

%

Change

%

Change

Financial Data ^2,3

Operating revenues

EBITDA

EBITDA Margin

¹        Includes total customers from all operators in which Telefónica Móviles holds an economic participation. 2003 includes subscribers of Brasicel, the Joint Venture with Portugal Telecom in Brazil, including TCO from May 2003. Excludes Chile and Puerto Rico.

²        Due to the consolidation of Telefónica Móviles México financial statements after the integration of the northern Mexican operators and Grupo Pegaso Telecomunicaciones, 2003 and 2002 revenues are after intragroup adjustments between these operators.

³        2003 figures reflect consolidation by proportional method for Brasilcel-the Joint Venture with Portugal Telecom- including TCO from May 2003. 2002 figures reflect full consolidation of TeleSudeste Celular, CRT Celular and TeLeste Celular.

Brazil

•      Market growth led by VIVO, with a successful Christmas campaign.

•      Advance in usage in 4Q03, driven by increased usage of data services.

•      Quarterly EBITDA performance impacted by strong net adds in 4Q03.

Brazil

%

Change

Subscriber Data