GLOBO CABO IMPROVES REVENUE AND PROFIT PERFORMANCE DESPITE ECONOMIC SLOWDOWN IN BRAZIL.

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1 Globo Cabo S.A. Av. Afrânio de Melo Franco, n o 135-1º Andar Leblon - Rio de Janeiro - RJ CEP Tel: (55 21) Fax: (55 21) NEWS RELEASE Fernanda Mourão Globo Cabo S.A Curtis Smith / Marco Lima Citigate Dewe Rogerson Inc GLOBO CABO IMPROVES REVENUE AND PROFIT PERFORMANCE DESPITE ECONOMIC SLOWDOWN IN BRAZIL. (Rio de Janeiro, Brazil August 12, 1999) Globo Cabo S.A. (NASDAQ:GLCBY) today announced its financial results for the quarter and six months ended June 30, Comments below are based on US GAAP and all financial figures are stated in US dollars. I. Second Quarter and First Half 1999 Results Globo Cabo s second quarter 1999 EBITDA reached US$ 26.8 million representing a margin of 28.5% compared to US$ 22.0 million and 24.5% in the first quarter of EBITDA for the first half 1999 was US$ 48.7 million down from US$ 71.1 million during the same period in 1998, as a direct result of the devaluation of the Brazilian real which occurred in the first quarter of Connected subscribers declined to 925,061 during the second quarter of The twelve-month churn rate for the period ending June 30, 1999 decreased to 23.0% from 24.1% in the period ended March 31, Quarterly churn for the second quarter, calculated on an annualized basis, increased to 25.1% from 21.5% in the first quarter of Net loss declined to US$ 59.0 million for the second quarter compared to a loss of US$ million in the first quarter of 1999, which was dramatically effected by the non-cash foreign exchange loss resulting from the devaluation. For the first half of 1999, the net loss increased to US$ million from US$ 99.3 million in the same period last year. Total debt declined to US$ million in the second quarter from US$ million at the end of the first quarter of Capital expenditures amounted to US$ 9.7 million for the second quarter of 1999 down from US$ 17.1 million in the first quarter of For the first half of 1999, capital expenditures decreased dramatically to US$ 26.8 million from US$ million in the same period last year.

2 Page 2 II. Second Quarter 1999 Overview During the second quarter of 1999, the Company began to see the effects that the devaluation of the Real had on its subscriber base. While net revenues increased due to an adjustment in subscription rates implemented in April and May, churn increased and the connected subscriber base decreased. Reduced selling expenses and a series of tactical measures taken immediately after the devaluation have clearly improved Globo Cabo s financial results, as demonstrated by the 22% increase in EBITDA during the second quarter of Operationally, the Company continues to improve productivity through the clustering of its operations which allows for the implementation of standardized systems and overall cuts in administrative costs. Programming expenses, which are US dollar-denominated, were renegotiated during the first half of The resulting compromise divides the cost of currency devaluation between the Company and its major programming partners. During the second quarter of 1999, principal payments on debt were paid with a combination of operational cash flows, refinancing of import lines, new working capital credit and intercompany loans. These measures provided a short-term solution to the liquidity challenges of the Company, while the overall capital restructuring is still being formulated. III. Second Quarter 1999 Relevant Facts Formal Regulation of Cable Internet Expected During the Third Quarter of 1999 During the second quarter of 1999, ANATEL, the National Telecommunications Agency, with the intention of issuing formal guidelines on the provision of internet services via cable, requested formal reports from the companies that participated in operational tests. For nearly two years, Globo Cabo has operated a cable internet operation in Sorocaba, a city in the interior of the state of São Paulo, which now has 300 paying subscribers and over 1,000 users. The main advantages of our system are high-speed access, unlimited usage, and freedom from the cost and inconvenience of using local telephone lines. During the second quarter, an additional subscription fee of R$69 was initiated for this service.

3 Page 3 The commercial launch of Virtua, the Company s cable internet service, will require limited incremental investment as the fibre optic network architecture was planned to accommodate two-way communication. The required investment will focus primarily on internet server equipment placed in the headends and equipment required to activate the return path capability of the network. The Company is still evaluating the investment in and commercialization strategy for cable modems. Consolidation of Unicabo Operations As part of the acceleration of the clustering process, the five operations of Unicabo, a 50%-owned subsidiary of Globo Cabo S.A., were put under the operational control of the Interior São Paulo Cluster, during the second quarter of The change significantly improved the consolidated results of these operations through increased productivity and leverage of fixed costs. Capital Restructuring Process In April 1999, Globo Cabo Holding S.A., the Company s controlling shareholder, retained Chase Securities Inc. to provide financial advisory services related to capital structure alternatives for the Group. Included in the scope of the engagement were issues surrounding potential structures for an investment by BNDESPar, the private equity branch of the Brazilian National Development Bank, and the attraction of potential strategic partners in telephony and internet-related services. Discussions regarding this recapitalization and strategic partnering process have advanced significantly and the Company expects to be announcing agreements in principle during the next days. These negotiations are confidential and the parties have still not reached a final determination as to the structure or the terms of these partnerships. Due to the fact that these transactions involve an infusion of capital into the Company, they may be subject to customary shareholder, regulatory, and other approvals.

4 Page 4 IV. Consolidated Operations a) EBITDA EBITDA (US$ thousands) Net revenue 93,951 89, , , ,100 EBITDA 26,767 21,965 34,999 48,732 71,148 as a % of net revenue 28.5% 24.5% 25.8% 26.5% 25.9% In the second quarter of 1999, EBITDA margin increased to 28.5% from 25.8% during the same period in the previous year and 24.5% in the first quarter of The main source of this improvement was a reduction in selling expenses driven by declining sales. For the first half of 1999, EBITDA margin increased to 26.5% from 25.9% during the same period in the previous year. This improvement is mainly due to the reduced selling expenses and a significant improvement in bad debt expense, which is a direct result of more stringent credit-screening and disconnection policies. b) Revenues Subscription Revenue (US$ thousands) Subscription revenues 100,235 94, , , ,730 as a % of gross revenues 94.3% 92.6% 93.3% 93.5% 92.5% Avg. subscription revenue/subscriber/month (US$) $35.45 $32.49 $46.60 $33.95 $46.41 Avg. subscription revenue/subscriber/month (R$) $60.62 $59.71 $53.42 $60.23 $52.75 Subscription revenues increased from US$ 94.3 million in the first quarter of 1999 to US$ million in the second quarter, due to the increase in monthly revenues per subscriber from US$ to US$ during the quarter. For the first half of 1999, subscription revenues decreased to US$ million from US$ million during the same period in the prior year. During the respective periods, the average connected subscriber base declined from approximately 992,860 to 942,520 and average monthly revenues per subscriber declined from US$ to US$ 33.95, as a direct result of the devaluation of the Real.

5 Page 5 Sign-on and Hook-up Revenue (US$ thousands) Gross sign-on and hook-up fee revenue 2,112 1,792 4,103 3,904 10,337 Deferred sign-on and hook-up fee revenue, net (46) 888 2, ,147 Net sign-on and hook-up fee revenue 2,066 2,680 6,216 4,746 14,484 as a % of gross revenues 1.9% 2.6% 4.2% 2.3% 4.8% Avg. sign-on and hook-up revenue/subscriber (US$) $91.09 $37.16 $69.54 $55.81 $69.43 Avg. sign-on and hook-up revenue/subscriber (R$) $ $68.29 $79.71 $99.01 $78.92 During the second quarter of 1999, gross sign-on revenues increased to US$ 2.1 million from US$ 1.8 million in the first quarter, as a result of the increase in average sign-on fees from R$ 68 during the first quarter of 1999 to R$ 156 in the second quarter. During the first half of 1999, gross sign-on revenues amounted to US$ 3.9 million down from US$ 10.3 million during the same period in the prior year. New subscription sales were impacted by two key factors: the increased uncertainty in the Brazilian economic environment and the increase in sign-on fees that the Company implemented in February of this year. Other Services Revenues (US$ thousands) Other services revenue 3,978 4,855 3,786 8,833 8,212 as a % of gross revenues 3.7% 4.8% 2.5% 4.2% 2.7% Other services revenue/subscriber/month (US$) $1.41 $1.67 $1.27 $1.54 $1.36 Other services revenue/subscriber/month (R$) $2.41 $3.07 $1.46 $2.73 $1.54 During the second quarter of 1999, other revenues dropped to US$ 4.0 million from US$ 4.9 million in the first quarter of 1999, as regional soccer championships ended during the first quarter. Other revenues for the first half of 1999 were US$ 8.8 million up from US$ 8.2 million in the same period last year as sales of pay-per-view services increased more than 40% in Real terms.

6 Page 6 Net Revenue (US$ thousands) Gross revenues 106, , , , ,426 Sales taxes (9,337) (8,563) (11,147) (17,900) (22,671) Sales cancellations (2,991) (3,693) (2,105) (6,684) (5,655) Net revenue 93,951 89, , , ,100 Sales taxes comprise ICMS, PIS and COFINS, which represent approximately 8.7% of gross revenues. In the first quarter of 1999, the Company wrote-off approximately US$ 3.0 million related to backlog subscribers in southern part of the São Paulo operation. During the second quarter a similar accrual of US$ 2.0 million was taken due to backlog subscribers in northern part of the São Paulo operation. These accruals were made because the Company considers the connection of these subscribers unlikely. Due to the write-offs taken during the first half of 1999, sales cancellations have increased US$ 1.0 million compared to the same period last year. Setting aside these adjustments, the benefits of the Company s more stringent credit screening policies are apparent.

7 Page 7 c) Operating costs Direct Operating Expenses (US$ thousands) Programming & royalties (26,581) (25,982) (34,089) (52,563) (68,219) as a % net revenue 28.3% 29.0% 25.1% 28.6% 24.8% as a % subscription rev. 26.5% 27.5% 24.6% 27.0% 24.3% Other direct operating expenses (19,786) (18,324) (26,745) (38,110) (50,499) as a % net revenue 21.1% 20.4% 19.7% 20.8% 18.4% Direct operating expenses (46,367) (44,306) (60,834) (90,673) (118,718) as a % net revenue 49.4% 49.4% 44.9% 49.4% 43.2% Direct operating expenses increased from US$ 44.3 million in the first quarter of 1999 to US$ 46.4 million during the second quarter of In the first quarter of 1999, programming expenses were temporarily held constant, in pre-devaluation Brazilian real terms, while negotiations with programming providers were underway. During the second quarter of 1999, despite the decline in the subscriber base, programming expenses increased compared to the first quarter, as a direct result of the agreement reached with programming providers. These agreements provide for continued risksharing with respect to potential future devaluation of the Real. For the first half of 1999, direct operating expenses decreased to US$ 90.7 million from US$ million during the same period in the prior year. The increase in direct operating expenses, as a percentage of net revenues, from 43.2% during the first half of 1998 to 49.4% during the same period this year was driven primarily by increased pay-per-view programming costs and the impact of the devaluation of the Real on programming expenses in general.

8 Page 8 SG&A (US$ thousands) Selling expenses (917) (4,502) (14,035) (5,419) (28,336) as a % net revenue 1.0% 5.0% 10.4% 3.0% 10.3% Net sales (thousands of subscribers) (1.9) 25.1 (17.2) General & administrative (excluding bad debt expense) (18,034) (16,730) (18,536) (34,764) (35,449) as a % net revenue 19.2% 18.7% 13.7% 18.9% 12.9% Bad debt expense (2,002) (2,233) (6,918) (4,235) (20,912) as a % net revenue 2.1% 2.5% 5.1% 2.3% 7.6% SG&A (20,953) (23,465) (39,489) (44,418) (84,697) as a % net revenue 22.3% 26.2% 29.1% 24.2% 30.8% Note: Net sales=gross sales minus sales cancellations During the second quarter of 1999, selling, general and administrative expenses declined US$ 2.5 million from the prior quarter or more than 10%, driven by declines selling and bad debt expenses, slightly offset by an increase in general and administrative costs. Weak sales during the second quarter continued to drive selling expenses down. The Company reported negative net sales, as write-offs of backlog subscribers in the São Paulo operation were greater than gross sales during the second quarter. Compared to the same period during the prior year, selling, general and administrative expenses during the first half of 1999 dropped over US$ 40 million or 48%. This dramatic change is a result of the combination of economies of scale from clustering regional operations, tight credit screening and disconnection policies, reduced selling expenses and the impact of the devaluation on Real-denominated expenses.

9 Page 9 d) Operating and Net Results Operating Results (US$ thousands) Other income (expense), net (234) Depreciation and amortization (47,655) (44,724) (60,048) (92,379) (117,043) Loss on write down of equipment (164) (302) 72 (466) (616) Operating profit (loss) (21,052) (23,061) (24,977) (44,113) (46,511) The decline in the Company s operating losses from US$ 23.1 million during the first quarter of 1999 to US$ 21.1 million for the second quarter is explained by the combination of factors described previously. During the second quarter of 1999, depreciation expense increased to US$ 47.7 million from US$ 44.7 million in the first quarter. During the first half of 1999, operating losses decreased to US$ 44.1 million from US$ 46.5 million during the same period of the prior year, as the decline in net revenues was offset by declines in most of the major operating expenses. Net Results (US$ thousands) Gain / (loss) on exchange rate (12,928) (93,563) (12,021) (106,491) (21,657) Financial expense (27,886) (25,601) (23,922) (53,487) (47,164) Financial Income 1,602 1,323 7,020 2,925 14,400 Income tax benefit 5,525 2,127 2,133 7,652 5,325 Equity in results of investees (2,411) (14,658) (2,896) (17,069) (5,645) Minority interests in results of consolidated subsidiaries ,017 Other income (expense), net (1,866) 832 (240) (1,034) (104) Income (loss) (59,016) (152,601) (53,965) (211,617) (99,339) During the second quarter, net losses decreased to US$ 59.0 million from US$ million during the first quarter of 1999, as losses from equity in results of investees decreased to US$ 2.4 million from US$ 14.7 million during the respective periods and losses on exchange rate variations declined from US$ 93.6 million to US$ 12.9 million. During the first half of 1999, net losses increased to US$ million from US$ 99.3 million during the same period last year as a direct consequence of the Real devaluation that occurred during the first quarter of 1999.

10 Page 10 e) Debt, Capitalization and Cash Capitalization/Coverage (US$ thousands) 2Q99 1Q99 2Q98 Short Term Debt 323, , ,234 Commerical loans with financial institutions 67,198 91,205 83,029 Due to related parties/globo Overseas CP (1) ,347 Current portion of long-term debt 255,934 57, ,858 Long Term Debt 272, , ,702 Senior Guaranteed Notes , , ,000 BNDES (R$-denom.) 94,844 98, ,896 International Finance Corporation 80,311 90,700 90,700 Debentures (R$-denom.) (2) 65,555 67,364 0 Trade financing 37,061 28,706 89,586 Due to rel. parties/gc Holding (R$-denom.) (1) 65,953 48,901 10,255 Other long-term debt Current portion of long-term debt (255,934) (57,476) (104,858) US dollar-denominated debt 369, , ,785 Brazilian real-denominated debt 226, , ,151 Total Debt 595, , ,936 Shareholders' Equity 18,823 82, ,451 Debt/Annualized EBITDA Debt/Equity Debt/ Total Capital (1) Includes accrued interest (2) 1Q99 Includes interest accrued from issue date to placement Note: 2Q98 restated for the impact of the merger completed Sep Total debt decreased slightly during the second quarter of 1999 to US$ million from US$ million at the end of the first quarter. Approximately 62% of the Company s debt is US dollar-denominated.

11 Page Month Debt Amortization Schedule (US$ thousands) 12 months 3Q99 4Q99 1Q00 2Q00 US dollar-denominated debt (US$) Commerical loans with financial institutions 45,662 14,762 15,232 7,272 8,396 International Finance Corporation 20,782-10,391-10,391 Senior Guaranteed Notes , , ,444 14,762 25,623 7, ,787 Brazilian real-denominated debt (R$1.7695:US$1) - BNDES 26,734 6,086 6,474 7,087 7,087 Commerical loans with financial institutions 44,954 44, ,688 51,040 6,474 7,087 7,087 Total 323,132 65,802 32,097 14, ,874 At June 30, 1999, the Company s Senior Unsecured Notes due in 2004 were reclassified as short-term debt under US GAAP. This reclassification is required as holders of this security have a put option at 100% of face value exercisable on June 18, 2000; the market price was less than 100% of face value at the end of the second quarter. Cash Position and Generation (US $ thousands) Cash, beginning balance 1,171 5,145 79,708 5,145 71,743 Net income / (loss) (59,016) (152,601) (53,965) (211,617) (99,339) Depreciation and amortization 47,655 44,724 60,048 92, ,043 Other non-cash adjustments to net income 33, ,849 13, ,933 39,016 Capex (9,681) (17,113) (73,436) (26,794) (189,910) Cash flows from other investing activities 1,591 2,531 2,112 4,122 6,440 Cash flows from financing, net of exchange impact (12,012) (97,364) (10,790) (109,376) 72,464 Cash, ending balance 2,792 1,171 17,457 2,792 17,457 Capital expenditures for the second quarter of 1999 totaled US$ 9.7 million which was less than expenditures for the first quarter of US$ 17.1 million. For the first half of 1999, capital expenditures declined to US$ 26.8 million from US$ million during the same period in the prior year. This is driven by two factors: (1) network construction was completed during the first half of 1998 and (2) early in the year, the Company decided cut all discretionary investment due to capital constraints.

12 Page 12 V. Results on an Equity Basis Summary Equity Results (US$ thousands) Net Revenue. Globo Cabo Consolidated 93,951 89, , , ,100. Unicabo (50% equity interest) 3,231 3,028 4,396 6,259 8,825 Net Revenues 97,182 92, , , ,925 EBITDA. Globo Cabo Consolidated 26,767 21,965 34,999 48,732 71,148. Unicabo (50% equity interest) 1, , EBITDA 28,011 22,615 35,250 50,626 72,037 Earnings (loss) for the period. Globo Cabo Consolidated (59,016) (152,601) (53,965) (211,617) (99,339). Unicabo (50% equity interest) (2,377) (14,168) (2,655) (16,545) (5,102) Net Income / (Loss) (61,393) (166,769) (56,620) (228,162) (104,441) Equity Connected Subscribers. Globo Cabo Unicabo (50% equity interest) Equity Subscribers , ,020.2 Globo Cabo s equity EBITDA reached US$ 28.0 million in the second quarter, a 24% increase from the US$ 22.6 million reported in the first quarter of During the second quarter of 1999, Unicabo s EBITDA margin increased to 38.5% from 21.5% in the first quarter primarily due to savings from the elimination of administrative costs as these operations were clustered with the other operations of the Interior São Paulo Cluster. During the first half of 1999, equity EBITDA was US$ 50.6 million compared to US$ 72.0 million during the same period in 1998.

13 Page 13 VI. Selected Operating Data Operating Data 2Q99 1Q99 2Q98 Homes passed (thousands) 4, , ,385.1 Equity homes passed (thousands) 4, , ,501.6 Connected subscribers (thousands) Equity connected subscribers (thousands) ,020.2 Backlog (thousands) Equity backlog (thousands) Connected subscriber penetration 20.6% 21.4% 22.5% Connected equity subscriber penetration 20.7% 21.5% 22.7% Net disconnections (thousands) Churn rate (last twelve months) (1) 23.0% 24.1% 37.6% Quarterly churn (annualized) 25.1% 21.5% 30.5% Advanced 98 as a % of end of period subs.(2) 42.0% 40.1% 23.7% Advanced 95 as a % of end of period subs. 42.0% 43.7% 58.8% Basic as a % of end of period subs. 16.0% 16.2% 17.6% (1) {net disconnections / average connected subscribers} (2) Includes Premium package subscribers in Belo Horizonte During the second quarter of 1999, consolidated connected subscribers declined 3.6% due to increased churn as a result of economic uncertainty after the devaluation of the Real and weak sales. The 12-month churn rate calculated on the average consolidated connected subscriber base was 23.0%, a decrease from 24.1% in the first quarter of Annualized quarterly churn for the second quarter increased to 25.1% from 21.5% in the first quarter of VII. Globo Cabo S.A. Globo Cabo is the largest cable television operator in Brazil, with ownership interests in 18 cable television systems and one MMDS system, including operations in Brazil s three largest cities, São Paulo, Rio de Janeiro and Belo Horizonte. The Company currently provides high-speed Internet access services, on a test basis, in one operation and is expecting government approval to begin full-scale operations shortly. All except one of these systems are located in southeast and central-west Brazil, the most prosperous and populous regions in the country.

14 Page 14 (There are six tables to follow) Please note that the accompanying historical financial statements have been restated for the merger between Multicanal Participações S.A. and Globo Cabo Participações S.A. that was completed in September 1998.

15 Page 15 Table 1 - Income Statement Globo Cabo S.A. 3 months 3 months 3 months Consolidated Income Statement - US GAAP ended ended ended Historical - For the Jun 30, Mar 31, Jun 30, (in US$ thousands) Revenues Subscriptions 100,235 94, ,799 Other services 3,978 4,855 3,786 Subscriptions and other services revenue 104,213 99, ,585 Gross sign-on and hookup fee revenue 2,112 1,792 4,103 Deferred sign-on and hookup fee revenue,net (47) 888 2,113 Sign-on and hookup revenue, net 2,065 2,680 6,216 Gross Revenues 106, , ,801 Service and other taxes (12,328) (12,256) (13,252) Net Revenues 93,950 89, ,549 Operating Expenses Direct operating expenses (46,367) (44,306) (60,834) Selling, general & administrative (20,953) (23,465) (39,792) Depreciation and amortization (47,655) (44,724) (60,048) Loss on write-down of equipment, net (164) (302) 72 Other income/(expense), net Operating Income/(Loss) (21,053) (23,061) (24,977) Non-operating Expenses Loss on exchange rate, net (12,928) (93,563) (12,021) Financial expenses (27,886) (25,601) (23,922) Financial income 1,602 1,323 7,020 Other, net (1,866) 832 (240) Income/(loss) bef. tax, investees, min. ints. (62,131) (140,070) (54,140) Income tax benefit, net 5,525 2,127 2,133 Income/(loss) bef. investees, min. ints. (56,606) (137,943) (52,007) Equity in results of investees (2,411) (14,658) (2,896) Minority interest Net Income/(Loss) (59,017) (152,601) (53,965) Loss per share ($0.03) ($0.09) ($0.04) Weighted average number of shares 1,690,672,825 1,690,672,825 1,437,621,284 EBITDA 26,766 21,965 34,999

16 Page 16 Table 2 - Income Statement Globo Cabo S.A. 6 months 6 months Consolidated Income Statement - US GAAP ended ended Historical - For the Jun 30, Jun 30, (in US$ thousands) Revenues Subscriptions 194, ,730 Other services 8,833 8,212 Subscriptions and other services revenue 203, ,942 Gross sign-on and hookup fee revenue 3,904 10,337 Deferred sign-on and hookup fee revenue,net 841 4,147 Sign-on and hookup revenue, net 4,745 14,484 Gross Revenues 208, ,426 Service and other taxes (24,584) (28,326) Operating Expenses Net Revenues 183, ,100 Direct operating expenses (90,673) (118,718) Selling, general & administrative (44,418) (85,000) Depreciation and amortization (92,379) (117,043) Loss on write-down of equipment, net (466) (616) Other income/(expense), net 256 (234) Non-operating Expenses Operating Income/(Loss) (44,114) (46,511) Loss on exchange rate, net (106,491) (21,657) Financial expenses (53,487) (47,164) Financial income 2,925 14,400 Other, net (1,034) (104) Income/(loss) bef. tax, investees, min. ints. (202,201) (101,036) Income tax benefit, net 7,652 5,325 Income/(loss) bef. investees, min. ints. (194,549) (95,711) Equity in results of investees (17,069) (5,645) Minority interest 0 2,017 Net Income/(Loss) (211,618) (99,339) Loss per share ($0.13) ($0.07) Weighted average number of shares 1,690,672,825 1,437,621,284 EBITDA 48,731 71,148

17 Page 17 Table 3 - Balance Sheet Globo Cabo S.A. Consolidated Balance Sheet - US GAAP Historical - As of Jun 30, Mar 31, Jun 30, (in US$ thousands) 1999 % 1999 % 1998 % Assets Cash & cash equivalents 2, % 1, % 59, % Accounts Receivables 47, % 52, % 94, % Advances to suppliers 2, % 2, % 2, % Advances to employees % % 1, % Other 2, % 5, % 3, % Allowance for doubtful accounts (15,551) -2.0% (17,448) -2.0% (35,312) -2.5% Net accounts receivables 37, % 43, % 67, % Income tax recoverable 7, % 7, % 8, % Deferred income tax % % 3, % Prepaid expenses and other current assets 4, % 5, % 4, % Total current assets 54, % 57, % 143, % Deferred income tax 19, % 18, % 17, % Due from related companies 3, % 4, % 20, % Investments and advances to investees 2, % 2, % 18, % Cable network 745, % 763, % 998, % Land, buildings, improvem. fix. fit, & instal 18, % 18, % 26, % Vehicles 1, % 2, % 5, % Data processing equip. 36, % 35, % 18, % Cable construction materials 59, % 58, % 160, % Accumulated depreciation (333,391) -41.9% (302,458) -35.4% (283,297) -20.0% Net property and equipment 527, % 574, % 926, % Goodwill on acquisition of consol. subs. 156, % 166, % 258, % Other assets 32, % 30, % 31, % Long-term assets 742, % 797, % 1,272, % Total assets 796, % 855, % 1,415, % Liabilities and Stockholders' Equity Accounts payable 36, % 22, % 26, % Income taxes payable 2, % 2, % % Short-term debt 67, % 91, % 83, % Due to related companies 0 0.0% 0 0.0% 166, % Current portion of long-term debt 255, % 57, % 104, % Other payables and accruals 47, % 52, % 53, % Current Liabilities 409, % 226, % 435, % Long-term debt 206, % 412, % 406, % Due to related companies 65, % 48, % 6, % Deferred sign-on and hookup fee revenue 37, % 38, % 62, % Other payables and accruals 57, % 46, % 38, % Long-term liabilities 367, % 546, % 513, % Minority interests in consol. subs % 0 0.0% (233) 0.0% Capital stock 764, % 764, % 761, % Retained earnings/(deficit) (660,408) -82.9% (601,392) -70.3% (279,150) -19.7% Cumulative translation adjustment (85,253) -10.7% (80,135) -9.4% (14,867) -1.0% Shareholders' equity 18, % 82, % 467, % Total Liabilities & Shareholders' Equity 796, % 855, % 1,415, %

18 Page 18 Table 4 - Cash Flow Statement Globo Cabo S/A 3 months 3 months 3 months Consolidated Statement of Cash Flows - US GAAP ended ended ended Historical - For the Jun 30, Mar 31, Jun 30, (in US$ thousands) Loss for the period (59,017) (152,601) (53,965) Non-cash items 57, ,754 71,346 Deferred sign-on and hook-up fee revenue 1, Amortization of deferred revenues (1,449) (1,399) (2,113) Equity in results of investees 2,411 14,658 2,896 Exchange losses, net 12, ,518 13,825 Depreciation and amortization 47,655 44,724 60,048 Minority interest in results of consolidated subsidiaries 0 0 (938) Deferred income tax (5,848) (2,858) (2,597) Loss on sale of assets (72) Amortization of compensation cost Cash after non-cash items (1,959) 100,153 17,381 Decrease (Increase) in assets 436 (11,282) 19 Accounts receivable 4,289 (1,265) 4,406 Income tax recoverable (702) 332 (1,880) Prepaid expenses and other assets (3,151) (10,349) (2,507) Increase (decrease) in liabilities 23,245 19,101 2,463 Accounts payable to suppliers and programmers 14,400 1,802 (4,747) Income taxes payable Other payables and accruals 8,742 17,185 6,811 Net cash provided by operating activities 21, ,972 19,863 Cash flow from investing activities (8,090) (14,582) (71,324) Acquisition from investments and advances to related companies 617 1, Acquistion of porperty and equipment (9,681) (17,113) (73,436) Proceeds from the sale of equipment 974 1,042 1,844 Net cash after investing activities 13,632 93,390 (51,461) Cash flow from financing activities (12,895) (68,999) (9,547) Change in overdraft facility 8,267 32,225 0 Short term debt issuance 430 2,376 24,792 Short term debt repayment (16,530) (23,573) (11,200) Issuances of long term debt (19,929) ,438 Related party loan issuances 58,521 56,603 45,044 Related party loan repayments (43,654) (136,786) (90,621) Net cash after financing activities ,391 (61,008) Effect of exchange rate changes on cash 883 (28,365) (1,243) Net increase in cash and cash equivalents 1,620 (3,974) (62,251) Cash and cash equivalents, beginning of the period 1,171 5,145 79,708 Cash and cash equivalents, end of the period 2,791 1,171 17,457

19 Page 19 Table 5 - Cash Flow Statement Globo Cabo S/A 6 months 6 months Consolidated Statement of Cash Flows - US GAAP ended ended Historical - For the Jun 30, Jun 30, (in US$ thousands) Loss for the period (211,618) (99,339) Non-cash items 309, ,333 Deferred sign-on and hook-up fee revenue 2, Amortization of deferred revenues (2,848) (4,264) Equity in results of investees 17,069 5,645 Exchange losses, net 208,850 25,200 Depreciation and amortization 92, ,043 Minority interest in results of consolidated subsidiaries 0 (2,017) Deferred income tax (8,706) (6,602) Loss on sale of assets Amortization of compensation cost Cash after non-cash items 98,194 36,994 Decrease (Increase) in assets (10,846) 9,342 Accounts receivable 3,024 15,529 Income tax recoverable (370) (768) Prepaid expenses and other assets (13,500) (5,419) Increase (decrease) in liabilities 42,346 10,384 Accounts payable to suppliers and programmers 16,202 (12,276) Income taxes payable 217 (2,053) Other payables and accruals 25,927 24,713 Net cash provided by operating activities 129,694 56,720 Cash flow from investing activities (22,672) (183,470) Acquisition from investments and advances to related companies 2,106 3,413 Acquistion of porperty and equipment (26,794) (189,910) Proceeds from the sale of equipment 2,016 3,027 Net cash after investing activities 107,022 (126,750) Cash flow from financing activities (81,894) 75,253 Change in overdraft facility 40,492 0 Short term debt issuance 2,806 69,314 Short term debt repayment (40,103) (39,918) Issuances of long term debt (19,773) 40,647 Related party loan issuances 115, ,575 Related party loan repayments (180,440) (152,365) Net cash after financing activities 25,128 (51,497) Effect of exchange rate changes on cash (27,482) (2,789) Net increase in cash and cash equivalents (2,354) (54,286) Cash and cash equivalents, beginning of the period 5,145 71,743 Cash and cash equivalents, end of the period 2,791 17,457

20 Page 20 Table 6 - Selected Operating Data As of Company's Equity Connected Total Total Jun 31, 1999 Economic Homes Equity Homes Connected Total Cable System Interest Passed Subscribers Passed Subscribers Penetration São Paulo 100% 2,055, ,808 2,055, , % Santos 100% 131,012 46, ,012 46, % Sorocaba 100% 58,717 16,926 58,717 16, % São Paulo Cluster 2,245, ,635 2,245, , % Ribeirão Preto 100% 112,876 18, ,876 18, % Piracicaba 100% 63,814 18,043 63,814 18, % Campo Grande 100% 60,729 14,127 60,729 14, % São José do Rio Preto 100% 64,591 12,184 64,591 12, % Bauru 100% 49,712 10,780 49,712 10, % Interior São Paulo Cluster 351,722 73, ,722 73, % Belo Horizonte 100% 394, , , , % Brasília 100% 228,383 37, ,383 37, % Goiânia 100% 215,484 22, ,484 22, % Anápolis 70% 25,831 1,618 36,902 2, % Central Plain Cluster 863, , , , % Rio de Janeiro 100% 897, , , , % Recife 92% 119,764 18, ,980 20, % Rio de Janeiro Cluster 1,017, ,050 1,027, , % Consolidated Total 4,478, ,766 4,499, , % Campinas 50% 88,758 22, ,515 44, % Jundiaí 25% 16,608 4,563 66,431 18, % São Carlos 50% 21,646 4,864 43,292 9, % Franca 50% 19,266 2,965 38,532 5, % Indaiatuba 50% 7, ,348 1, % Unicabo 153,951 35, ,118 79, % Equity Total 4,632, ,929 4,840,722 1,004, %