GLOBO CABO CONSOLIDATES GROWTH TREND THROUGH STRONG OPERATIONAL RESULTS

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1 Globo Cabo S.A. Rua Verbo Divino, 1356 CEP São Paulo - SP Tel: (55 11) Fax: (55 11) NEWS RELEASE GLOBO CABO CONSOLIDATES GROWTH TREND THROUGH STRONG OPERATIONAL RESULTS Compared to the fourth quarter of 1999, net revenues increased 14.0%, EBITDA increased 24.5% and subscriber base increased 1.4% in the first quarter of 2000 (São Paulo, May 15, 2000) Globo Cabo S.A. (NASDAQ: GLCBY) today announced its financial results for the first quarter of Comments below are based on U.S. GAAP principals and all figures are stated in U.S. dollars. I. Executive Summary - Results for the First Quarter 2000 Connected subscribers excluding Unicabo, increased to thousand in the first quarter of 2000, compared to thousand in the fourth quarter of 1999, representing an annualized increase of 5.7%. Although the subscriber base at the end of March 2000 was still around 1.0% below the base of March 1999, there has been a clear improvement in the subscriber base structure in terms of churn and of the subscription revenues mix. Annualized churn rate decreased to 16.1% in the first quarter of 2000, compared to 21.5% during the same period last year. This level represents a deterioration from the fourth quarter of 1999, already showing an increase in commercial activity. This figure compares to international churn rate levels which are above 20%. Advanced Package subscribers as a percentage of total subscribers grew to 54.5% in the first quarter of 2000, compared to 40.1% in the first quarter of 1999 and 52.9% in December of 1999, signaling that subscribers are perceiving more value in programming selections providing more options in terms of channels and services. The provision for doubtful accounts dropped from 2.5% in the first quarter of 1999 and 2.3% in the last quarter of 1999 to 1.7% during the first quarter of EBITDA in the first quarter of 2000 totaled US$ 21.7 million, representing an margin over net sales of 22.1% compared to US$ 17.4million and 20.2%, respectively, in the fourth quarter of Reflecting the Company s growth strategy, EBITDA of US$ 21.7 million in the first quarter of 2000 represents slight decrease from US$ 22.0 million EBITDA in the first quarter of 1999, while margin decreased to 22.1% from 24.5%, respectively. The decline in margin is a direct result of the increase in maintenance & programming costs and marketing expenses.

2 Page 2 Net loss declined to US$ 20.9 million in the first quarter of 2000, compared to US$ 152.6million in the first quarter of This is a result of the reduction in net financial expenses after the recapitalization program (US$ 7.4 million in 1Q00 versus US$ million in 1Q99 including loss on exchange rate), and a change in the depreciation method to more efficiently measure the useful life of assets. The recapitalization initiated during the second half of 1999 was only concluded in January 2000, at which time approximately 90% of the R$350 million convertible debentures to preferred shares were issued. As such, comparing first quarter of 2000 with the same period last year, total debt increased to US$ million in the first quarter of 2000 from US$ million and net debt decreased to US$ million from US$ million as of the same periods, respectively. Considering that short-term obligations total US$ million, which includes a portion of the short-term notes that will be paid to investors in 2000 (see item F), Globo Cabo's cash position totals US$ million, demonstrating that the Company's short-term liquidity has improved significantly in the last 12 months II. Relevant Events Introduction of broadband access via cable Vírtua During the first quarter of 2000, Globo Cabo introduced broadband Internet access via cable Vírtua to its subscribers. With the completion of tests in the city of Sorocaba, Globo Cabo began offering Vírtua in the city of São Paulo, following a formal introduction of the service in the first half of April. During the second quarter of 2000, Vírtua will be launched in the city of Rio de Janeiro, and by the end of the year in the cities of Belo Horizonte, Brasília, Goiânia and Campinas. At the end of the first quarter of 2000, the Company had 791 subscribers to this new service. As previously announced, the Company expects to end the year 2000 with 50 thousand subscribers of Vírtua. This figure is based partly on the fact that, without marketing efforts, there were 25 thousand potential subscribers that applied for the service throughout the Company s concession areas. In addition, over 50% of Globo Cabo s subscribers in the markets of Rio de Janeiro, São Paulo and Belo Horizonte are Internet users. As with the launch of every new technology related product, the Company expects to experience a natural improvement in the learning curve for the sales force of Virtua, as well as adapt the service to a rapid advancement mass production. In this specific case, Globo Cabo has opted for a gradual launching of the service so as to ensure users a high level of quality.

3 Page 3 Acquisition of Unicabo and Vicom The process of acquiring 50% of the shares of Unicabo that Globo Cabo does not already own is underway as previously announced during the first quarter of Unicabo is licensed to operate in 5 cities in the interior of São Paulo, including Campinas and Jundiaí. Globo Cabo expects to complete this transaction in the second quarter of 2000, following appreciation by Anatel. The transaction will be completed through the absorption of debt and issuance of preferred shares of Globo Cabo S.A., resulting in the incorporation of Unicabo. Refer to Annex I of this press release for further details on this transaction. Globo Cabo is also in the process of acquiring Vicom, a corporate data transmission company, through the absorption of debt and the issuance of preferred shares as well. The acquisition of Vicom is fundamental to Globo Cabo's strategy as it provides the Company with access to national licenses to offer telecommunications services to the corporate market. In 1999, Vicom's net revenues totaled R$35.5 million, which resulted in an EBITDA if R$10.3 million. In December 1999, totaled indebtedness was R$40.1 million of which R$31.1 million corresponds short-term. Unaudited results for the first quarter of 2000 indicated that the Company obtained net revenues of R$10.6 million. This resulted in a negative EBITDA of R$1.4 million due to the recognition of a provision for fiscal contingencies of R$4.6 million (Vicom s figures discussed here are in Brazilian GAAP). Technological Improvements in the First Quarter of 2000 In the first quarter of 2000, Globo Cabo accomplished substantial technological advances. First, the Company codified the signal of over 800 thousand homes passed, with the objective of introducing the Pay TV Standard Package and reducing piracy. In addition, the Company activated the two-way signals of 140 thousand homes passed in São Paulo for the commercialization of Vírtua. Globo Cabo also introduced a single subscriber management system for the interior of São Paulo region, which encompasses 10 operations and 140 thousand subscribers. Finally, the Company implemented in the first quarter of 2000 an Internet purchasing system. New Compensation Plan for Key Executives During the first quarter of 2000 The Board of Directors of Globo Cabo approved an incentive plan for its senior executives though a variable remuneration process, which is based on a virtual share option purchase plan. The remuneration will be based on employee performance, targeted EBITDA levels, business growth rates and subscriber opinion surveys. The overall goal of this program is to join the long-term goals of shareholders with executive s and create mechanisms for the retention of talent. At this stage, Executive Directors, Directors and Senior Managers will participate in the program. In the future, other executives may be included.

4 Page 4 The plan will not result in the dilution for the current shareholders given that it will be based on the real current share prices negotiated on the exchange, but will be paid in cash during a predetermined period and in the event the shares reach a certain level. Accomplishments at the internal and institutional levels In an effort to direct decisions, actions and relations with various audiences of the Company, Globo Cabo has created a Guide of Conduct, which conveys the intent to build an ethical company on every level. This will be accomplished by taking into consideration concepts of justice, respect and responsibility according criteria established by the organization and the country. In addition, Globo Cabo has implemented an institutional marketing program in which the Company takes on projects related to social responsibility, such as encouraging employees to participate in community programs, contributing to the solution of social problems within the community. An example of this effort is the program "Net in the Community", which offers free access to Globo Cabo's programming and to Canal Futura to pedagogically assist educators. III. Subsequent Events Shares of Globo Cabo are added to the Bovespa Index Beginning May 2000, shares of Globo Cabo (PLIM4) were added to Brazil s Bovespa Index. Globo Cabo has an initial weight of 5%, representing the fifth stock in terms of weight in the index. This is a significant step toward increasing the liquidity of Globo Cabo s shares, thereby improving price and transparency of trades. In the first quarter of 2000, the trading volume of Globo Cabo s shares was significant. The average trading volume reached R$45.0 million/day on Bovespa and US$22.8 million/day on Nasdaq. Additionally, the Company continues working on the listing of its share on the Latibex, a separate Board in the Madrid Stock Exchange for Latin issuers. This should occur before the end of the second quarter. The Latibex listing is expected to bring, in the future, benefits for the Company in terms of liquidity as GloboCabo will reach a broader number of investors. Introduction of middle class programming package After the completion of tests in the cities of Anápolis and Goiânia, Globo Cabo introduced a Pay TV Standard Package in the cities of São Paulo, Rio de Janeiro and Belo Horizonte in April This package will be offered throughout the Company s codified network and will target the middle class.

5 Page 5 The Standard Selection will be composed of a range between 28 and 30 channels depending on the city, comprising all free broadcast and mandatory channels and 5 paid channels: Globo News, Multishow, USA, People & Arts and Fox Kids. The average subscription price for the package will be R$ In an effort to eliminate bad debt risks, the Standard Package will only be offered through a prepaid monthly or annual subscription method. Another characteristic of this service is that the subscriber does not run the risk of being disconnected, allowing them to temporarily halt service, paying a minimum of US$12 per month. IV. Consolidated Operations a) EBITDA EB ITD A (U S$ thousands) 1Q 00 4Q99 1Q 99 N et revenue EBITDA as a % of net revenue 22,1% 20,2% 24,5% EBITDA decreased to US$ 21.7 million in the first quarter of 2000 from US$ 22.0 million during the same period last year. When compared to net revenues, however, margin declined to 22.1% from 24.5% in the first quarter of This reduction in margin is a result of an increase in the cost of programming and maintenance and in marketing expenses. b) Revenues Subscription R eve nue (U S$ thousands) 1Q00 4Q99 1Q 99 Subscription revenues as a % of gross revenues 89,4% 92,4% 92,6% A vg. subscription revenue/subscriber/month (U S$) $35,19 $30,80 $32,49 A vg. subscription revenue/subscriber/month (R $) $62,63 $58,84 $59,70 Subscription revenue increased to US$ 99.5 million in the first quarter of 2000 from US$ 94.3 million in the first quarter of This growth is a result of an improvement in the sales mix (Advanced Package grew from 40.1% to 54.5% in the last 12 months) and a price adjustment during the second quarter of 1999 (11%). Sign-on and H ook-up R evenue (U S$ thousands) 1Q00 4Q99 1Q99 Gross sign-on and hook-up fee revenue D eferred sign-on and hook-up fee revenue, net (956) (543) 888 N et sign-on and hook-up fee revenue as a % of gross revenues 2,9% 2,5% 2,6% A vg. sign-on and hook-up revenue/subscriber (U S$) $77,44 $64,78 $37,16 A vg. sign-on and hook-up revenue/subscriber (R $) $137,81 $123,77 $68,29

6 Page 6 In the first quarter of 2000, net sign-on revenues increased to US$ 3.2 million from US$ 2.7 million in the first quarter of This increase is a result of 49.1% increase in installations during first quarter 2000 and of an increase in installation prices, which grew an average of 54%. O ther Services R evenues (U S$ thousands) 1Q 00 4Q 99 1Q 99 O ther services revenue as a % of gross revenues 7,7% 5,1% 4,8% O ther services revenue/subscriber/m onth (U S$) $3,03 $1,70 $1,67 O ther services revenue/subscriber/m onth (R $) $5,39 $3,25 $3,07 Other revenues increased 76.4% in the first quarter of 2000 when compared to the same period last year. This increase is primarily based on a growth in pay-per-view sales. The increase in pay-per-view sales was mainly due to a growth in sales of the Brazilian and São Paulo & Rio de Janeiro Soccer Championships and Adult Programming Sexy Hot. N e t R e v e nue (U S$ tho us ands ) 1Q00 4Q99 1Q 99 Gross revenues Sales taxes (12.645) (8.046) (8.563) Sales cancellations (421) (3.693) N et revenue Net revenues totaled US$98.2 million in the first quarter of 2000, compared to US$89.6 million in the first quarter of 1999 as per reasons explained above. Sales taxes totaled US$ 12.6 million in the first quarter of 2000 due to an ICMS tax increase to 7.5% from 5% during the period. In addition, the improvement in net revenues was supported by a more stringent policy in the sale of packages to new subscribers. Excluding the increase in the subscriber base, the reasons mentioned led to the increase in average revenue per subscriber. c) Operating costs Direct O perating Expe nses (US$ thousands) 1Q00 4Q99 1Q99 P rogramming & royalties (29.501) (26.228) (25.982) as a % net revenue 30,0% 30,4% 29,0% as a % subscription rev. 29,6% 30,5% 27,5% O ther direct operating expenses (21.502) (19.668) (18.324) as a % net revenue 21,9% 22,8% 20,4% D irect operating expenses (51.003) (45.896) (44.306) as a % net revenue 51,9% 53,3% 49,4%

7 Page 7 Direct operating costs increased US$ 6.7 million during the first quarter of 2000 when compared to the same period last year. This increase is primarily a result of increases in programming and maintenance costs. As compared to the same period last year, programming costs in the first quarter of 2000 increased US$ 3.5 million. The main reasons for this increase are: (1) an increase in programming costs related to foreign programming agreements which was minimized due to a renegotiation of certain conditions in order to avoid the full impact of the real devaluation in January 1999; (2) an improvement in the sales mix with higher sales of the Advanced Package; and, (3) an increase in the cost of pay-per-view programming due to a substantial increase of subscribers to this service. Excluding programming costs, other operating costs increased US$ 3.2 million in the first quarter of 2000 when compared to the same period last year. This increase is due to the integration of third-party personnel into Globo Cabo, increasing the payroll and expenses related to vehicles. The integration of third-party personnel resulted in a more direct management of maintenance services to subscribers, positively impacting churn. d) Selling, general and administrative expenses SG& A (US$ thousands) 1Q00 4Q99 1Q99 S e llin g e x p e n s e s ( ) ( ) ( ) a s a % n e t re v e n u e 4,4 % 3,7 % 5,0 % N et sales (thousands of subscribers) 49,5 40,0 25,1 General & adm inistrative (excluding bad debt expense) (19.534) (17.594) (16.730) as a % net revenue 19,9% 20,4% 18,7% Bad debt expense (1.708) (2.024) (2.233) a s a % n e t re v e n u e 1,7 % 2,3 % 2,5 % SG& A (25.569) (22.845) (23.465) as a % net revenue 26,0% 26,5% 26,2% Note: Net sales=gross sales minus sales cancellations Selling, general and administrative expenses in the first quarter 2000 totaled US$ 25.6 million, an increase of US$ 2.1 million compared to the same period in the prior year despite the reduction in the provision for doubtful accounts and selling expenses. Marketing expenses aimed at increasing subscriber loyalty such as Formula 1 Auto Racing (highly popular in Brazil) and direct mailing together with marketing expenses incurred acquiring new subscribers, such as promotion and advertising contributed to the increase in SG&A expenses. The increase in marketing expenses is aimed at consolidating the Company's commercial base, thereby preparing the Company to return to sales in The declined in the provision for doubtful accounts was basically due to two factors. First, an increase in the number of subscribers with automatic payment from checking accounts (20.5% of

8 Page 8 the subscriber base in March 2000 versus 16% in July 1999), and (2) a larger codified subscriber base has facilitated a more rigorous disconnection policy. In the first quarter of 2000, subscribers with two past due payments or 60 days were being disconnected. In May 2000, the Company adopted a more stringent policy, disconnecting signal after delinquency of approximately 35 days. The goal for the next six months is to disconnect subscribers with after 10 days delinquency periods. e) Operating and net results Operating Results (US$ thousands) 1Q00 4Q99 1Q 99 O ther income (expense), net D epreciation and am ortization (33.936) (40.781) (44.724) Loss on w rite dow n of equipment (260) (302) O perating profit (loss) (11.055) (23.631) (23.061) Operating loss declined to US$ 11.0 million in the first quarter of 2000 from US$ 23.1 million in the first quarter of A change in the depreciation method to more efficiently measures the useful life of assets resulted in a reduction in depreciation expense of US$ 10.8 million. The change in depreciation rate was approved after studies indicating that advances in technology allow for the Company to optimize investments previously made. This is due to Globo Cabo s modern techniques for cable network maintenance, as well as for the leveraging of services provided to subscribers throughout the useful life of the assets. Ne t Re s ults (US$ thous ands ) 1Q00 4Q99 1Q99 Gain / (loss) on exchange rate (2.554) (93.563) Financial expense (16.796) (25.804) (25.601) Financial Income Income tax benefit (600) (11.285) Equity in results of investees (1.871) (340) (14.658) Minority interests in results of consolidated subsidiaries Other income (expense), net Income (loss) (20.859) (37.750) ( ) In the first quarter of 2000, net loss declined to US$ 20.9 million from US$ million in the first quarter of In addition to the decline in operating losses discussed above, a substantial decline in net financial expenses contributed to the improvement in net results. It is important to note that the Company's results in 1Q99 were impacted by the real devaluation, generating a loss of R$87.1 million in exchange variation compared to R$5.3 million during the same period this year. In addition, the low cash position of the Company during the first quarter of 1999 resulted in financial revenue of R$8.6 million compared to R$20.3 million in the first quarter of 2000.

9 Page 9 The main reason for the improvement in net financial revenue was the solid recapitalization process in which the Company undertook during the second half of last year and which ended in the first weeks of January f) Debt, Capitalization and Cash C apitalization/c ov e rag e (U S$ tho us ands ) 1Q00 4Q99 1Q99 Short Term Debt C ommerical loans w ith financial institutions D ue to related parties/globo O verseas C P (1) C urrent portion of long-term debt Long Term Debt Senior Guaranteed N otes B N D ES (R$-denom.) International Finance C orporation D ebentures 2001 (R$-denom.) C onv. D ebentures 2006 (R$-denom.) Trade financing D ue to rel. parties/gc H olding (R$-denom.) (1) O ther long-term debt C urrent portion of long-term debt ( ) ( ) (57.476) US dollar-denominated debt B ra zilia n rea l-d en o min a ted d eb t Total Debt Cash Net Debt Shareholders' Equity D ebt/a nnualized EB ITD A 7,11 6,76 6,94 D e bt/e q uity 3,0 8 2,24 7,3 8 D e bt/ T otal C apital 0,76 0,69 0,88 N et debt/a nnualized EBITD A 4,53 5,22 6,93 N et debt/equity 1,96 1,73 7,37 N et debt/ Total capital 0,48 0,53 0,88 (1) Includes accrued interest As of March 31, 2000, Globo Cabo s total debt reached US$616.4 million and its cash position US$ million, representing a net debt of US$ million. Total debt in the first quarter of 1999 was US$ million, cash position of US$ 1,2 million and net debt of US$ million. The substantial improvement on the Company s capital structure is a result of the recapitalization program that began during the second quarter of 1999 and ended in January As part of the re-capitalization, the Company issued 490 million ordinary and preferred shares which resulted in a capital increase of R$ million (US$ 298 million). Included in the process, Microsoft and BNDESpar became controlling shareholders of the Company in addition to Bradesco and Globo Cabo Holding.

10 Page 10 Further, the Company issued R$350.0 million (US$ million) in convertible debentures to preferred shares with a seven-year maturity and amortization during the last three years of the loan. Approximately 44% of the total debt was short-term at the end of the first quarter of This figure takes into consideration that the full amount of the US$185.0 million notes maturing in 2004 would had been paid in the second quarter of 2000 due to a put option. As such, this is a conservative scenario given that only 8.2% or US$15.1 million of the notes had their put option exercised. g) Debt amortization schedule 12-Month Debt Amortization Schedule (US$ thousands) 12 months 2Q00 3Q00 4Q00 1Q01 US dollar-denominated debt (US$) Commercial loans with financial institutions International Finance Corporation Senior Guaranteed Notes Brazilian real-denominated debt (R$1.7473:US$1) BNDES Commercial loans with financial institutions Debêntures Total The table above shows the Company s amortization schedule for the next four quarters. At the end of the first quarter 2000 the Company's cash totaled US$ 223,9 million. This cash was invested in fixed income mutual funds and marketable securities with first tier financial institutions. As discussed above, this is a conservative amortization scenario given that it does not take into consideration that only 8.2% of the Senior notes will have their put option exercised in These notes will have a final maturity in 2004, but have a put option in June No more than US$ 99,2 million will be maturing during the next 12 months, not US$ 269,2 million. This maturity amount does include the re-negotiation of certain foreign commercial papers. As such, Globo Cabo cash position is sufficient to cover all of our short term amortization and the Company is working to finance new investments with new credit lines in the financial markets.

11 Page 11 V. Selected Operating Data Operating Data 1Q00 4Q99 1Q99 H omes passed (thousands) 4.650, , ,5 Equity homes passed (thousands) 4.784, , ,6 Connected subscribers (thousands) 949,1 936,1 959,9 Equity connected subscribers (thousands) 980,7 967,8 994,7 Connected subscriber penetration 20,4% 20,2% 21,4% Connected equity subscriber penetration 20,5% 20,3% 21,5% N et disconnections (thousands) 38,0 28,3 52,1 Churn rate (last tw elve months) (1) 20,4% 18,2% 24,1% Q uarterly churn (annualized) 16,1% 12,2% 21,5% A dvanced as a % of end of period subs.(2) 54,5% 52,9% 40,1% Plus as a % of end of period subs. 27,6% 31,2% 43,7% M aster as a % of end of period subs. 17,9% 15,9% 16,2% (1) {net disconnections / average connected subscribers} In the first quarter of 2000, the number of consolidated connected subscribers increased to thousand from thousand in 4Q99, an annualized increase of 5.7%. Subscriber penetration declined 1.0% to 20.4% from 1Q99. Although the Company experienced a slight decline in penetration, the quality of the subscriber base improved. This improvement is evident when analyzing churn rate, which declined to 16.1% in the first quarter of 2000 from 21.5% in the same period last year, and the higher rate of Advanced Package subscriptions (54.5%). V. Globo Cabo S.A. Globo Cabo is the largest cable operator in Brazil, with ownership in 18 cable systems and one MMDS system, including operations in Brazil s three largest cities, São Paulo, Rio de Janeiro and Belo Horizonte. With close to 1 million connected subscribers, Globo Cabo s networks extend over 26,000 Km and pass approximately 5 million homes. For additional information, please contact: Augusto Rocha / Fernanda Mourão Globo Cabo S.A. arocha@globocabo.com.br / fmourao@globocabo.com.br (11) / (21) Curtis Smith / Marco Lima Citigate Dewe Rogerson Inc. mlima@dewerogerson.com (Four tables to follow)

12 Page 12 Please note that the accompanying historical financial statements have been restated to account for the merger between Multicanal Participações S.A. and Globo Cabo Participações S.A. which was completed in September 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 quarter ended Mar 31, Dec 31, Mar 31, (in US$ thousands) Revenues Subscriptions Other services Subscriptions and other services revenue Gross sign-on and hookup fee revenue Deferred sign-on and hookup fee revenue,net (956) (543) 888 Sign-on and hookup revenue, net Gross Revenues Service and other taxes (13.066) (6.863) (12.256) Net Revenues Operating Expenses Direct operating expenses (51.003) (45.896) (44.306) Selling, general & administrative (25.569) (22.845) (23.465) Depreciation and amortization (33.936) (40.781) (44.724) Loss on write-down of equipment, net (260) (302) Other income/(expense), net Operating Income/(Loss) (11.055) (23.631) (23.061) Non-operating Expenses Loss on exchange rate, net (2.554) (93.563) Financial expenses (16.796) (25.804) (25.601) Financial income Other, net Income/(loss) bef. tax, investees, min. ints. (18.388) (26.125) ( ) Income tax benefit, net (600) (11.285) Income/(loss) bef. investees, min. ints. (18.988) (37.410) ( ) Equity in results of investees (1.871) (340) (14.658) Minority interest Net Income/(Loss) (20.859) (37.750) ( ) Loss per share ($0,01) ($0,02) ($0,09) Weighted average number of shares EBITDA

13 Page 13 Table 2 - Balance Sheet Globo Cabo S.A. Consolidated Balance Sheet - US GAAP Historical - As of Mar 31, Dec 31, Mar 31, (in US$ thousands) 2000 % 1999 % 1999 % Assets Cash & cash equivalents ,9% ,5% ,1% Accounts Receivables ,2% ,5% ,1% Advances to suppliers ,1% 990 0,1% ,3% Advances to employees 728 0,1% 678 0,1% 580 0,1% Other ,3% ,4% ,6% Allowance for doubtful accounts (6.560) -0,6% (6.252) -0,7% (17.448) -2,0% Net accounts receivables ,0% ,3% ,1% Income tax recoverable ,1% ,0% ,8% Deferred income tax 547 0,1% 457 0,1% 714 0,1% Prepaid expenses and other current assets ,6% ,5% ,6% Total current assets ,6% ,3% ,8% Deferred income tax ,0% ,1% ,2% Due from related companies 67 0,0% 66 0,0% ,6% Investments and advances to investees ,1% ,7% ,3% Cable network ,0% ,5% ,3% Land, buildings, improvem. fix. fit, & instal ,7% ,2% ,1% Vehicles ,3% ,2% ,2% Data processing equip ,7% ,3% ,1% Cable construction materials ,5% ,9% ,8% Accumulated depreciation ( ) -42,6% ( ) -46,9% ( ) -35,4% Net property and equipment ,5% ,1% ,2% Goodwill on acquisition of consol. subs ,8% ,7% ,4% Other assets ,9% ,1% ,5% Long-term assets ,4% ,7% ,2% Total assets ,0% ,0% ,0% Liabilities and Stockholders' Equity Accounts payable ,1% ,2% ,7% Income taxes payable ,2% ,3% ,3% Short-term debt ,6% ,2% ,7% Due to related companies 0 0,0% 0 0,0% 0 0,0% Current portion of long-term debt ,7% ,4% ,7% Other payables and accruals ,3% ,8% ,2% Current Liabilities ,9% ,9% ,5% Long-term debt ,0% ,0% ,2% Due to related companies 466 0,0% 334 0,0% ,7% Deferred sign-on and hookup fee revenue ,0% ,5% ,5% Other payables and accruals ,5% ,1% ,4% Long-term liabilities ,5% ,7% ,9% Minority interests in consol. subs. 0 0,0% 0 0,0% 0 0,0% Capital stock ,2% ,6% ,3% Retained earnings/(deficit) ( ) -77,9% ( ) -89,9% ( ) -70,3% Cumulative translation adjustment (69.109) -6,8% (79.352) -9,2% (80.135) -9,4% Shareholders' equity ,6% ,4% ,7% Total Liabilities & Shareholders' Equity ,0% ,0% ,0%

14 Page 14 Table 3 - 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 quarter ended Mar 31, Dec 31, Mar 31, (in US$ thousands) Loss for the period (20.859) (37.750) ( ) Non-cash items Deferred sign-on and hook-up fee revenue Amortization of deferred revenues (1.567) (1.411) (1.399) Equity in results of investees Exchange losses, net (3.126) (21.318) Depreciation and amortization Minority interest in results of consolidated subsidiaries Deferred income tax (890) (2.858) Loss on sale of assets (1.212) Amortization of compensation cost Cash after non-cash items (5.548) Decrease (Increase) in assets (9.297) 528 (11.282) Accounts receivable (2.752) (1.265) Income tax recoverable (1.726) (316) 332 Prepaid expenses and other assets (4.819) (1.560) (10.349) Increase (decrease) in liabilities (43.610) Accounts payable to suppliers and programmers Income taxes payable 529 (44) 114 Other payables and accruals (45.749) Net cash provided by operating activities (48.630) Cash flow from investing activities (80.568) (56.940) (14.582) Acquisition from investments and advances to related co (20.952) (43.298) Acquistion of porperty and equipment (59.616) (13.924) (17.113) Proceeds from the sale of equipment Net cash after investing activities (56.600) ( ) Cash flow from financing activities (68.999) Change in overdraft facility 0 (54.183) Short term debt issuance (28.114) Short term debt repayment (26.071) (23.573) Issuances of long term debt Related party loan issuances Related party loan repayments (62) (71.083) ( ) Capital contributions Net cash after financing activities Effect of exchange rate changes on cash (28.365) Net increase in cash and cash equivalents (3.974) Cash and cash equivalents, beginning of the period Cash and cash equivalents, end of the period

15 Page 15 Table 4 - Selected Operating Data As of Company's Equity Connected Total Total Mar 31, 2000 Economic Homes Equity Homes Connected Total Cable System Interest Passed Subscribers Passed Subscribers Penetration São Paulo 100% ,2% Santos 100% ,2% Sorocaba 100% ,7% São Paulo Cluster ,2% Ribeirão Preto 100% ,9% Piracicaba 100% ,3% Campo Grande 100% ,7% São José do Rio Preto 100% ,4% Bauru 100% ,3% Interior São Paulo Cluster ,2% Belo Horizonte 100% ,1% Brasília 100% ,7% Goiânia 100% ,2% Anápolis 70% ,3% Central Plain Cluster ,3% Rio de Janeiro 100% ,3% Recife 92% ,9% Rio de Janeiro Cluster ,9% Consolidated Total ,4% Campinas 50% ,9% Jundiaí 25% ,3% São Carlos 50% ,0% Franca 50% ,2% Indaiatuba 50% ,0% Unicabo ,3% Equity Total ,5%

16 Page 16 ANNEX I UNICABO ACQUISITION PROCESS Today, Globo Cabo S.A. (Globocabo) and Unicabo Participações e Comunicações S.A. (Unicabo) publicly disclosed to its investors the following information related to the acquisition of 50% of Unicabo by Globocabo. Current Ownership Structure Presently, Globocabo is a controlling shareholder of Unicabo through a 50% ownership of common shares. The remaining 50% is owned by José Bonifácio Coutinho Nogueira (Nogueira Family). Background Both Globopar and Unicabo are Cable TV operators that cover different but complementary geographic areas. They have developed their cable businesses in a coordinated manner, operating exactly under similar management structures and policies. Both companies use the NET brand name, provide the same content and have implemented coordinated marketing strategies.. Selected Unicabo Operational and Financial Data: Unicabo operates under the NET brand name in the cities of Campinas, Franca Indaiatuba, Jundiaí and São Carlos, all located in the State of São Paulo. As of March 31, 2000, Unicabo had 76,824 subscribers with a total of 334,500 homes passed. Unicabo s subscriber base represents 4% of the Brazilian pay television market and corresponds to 7.5% of Globo Cabo s total number of subscribers. The network extension totaled 2,641 Km as of March 31, 2000, of which 50% is 750 MHz, 42% is 550 MHz and 8% is 450 MHz. In 1Q00, Unicabo reported net revenues of US$6.2 million and EBITDA of US$1.9 million, according to U.S. GAAP. For the full year in 1999, net revenues and EBITDA reached US$ 24.0 million and US$ 7.5 million, respectively. As of March 31, 2000 Unicabo s debt totaled US$84.9 million, of which US$ 62.1 million is held by Globo Cabo as intercompany obligations. Rational Behind the Transaction The acquisition of the remaining 50% of Unicabo by Globo Cabo was carried to maximize the synergies that exist between the two companies in areas such as Operations, Finance and Commercial. Management believes that these synergies will support faster growth for both operations. Globo Cabo will increase its current subscriber base by 33,650 new subscribers, all of them located in the interior of the São Paulo state. The interior of São Paulo State is a

17 Page 17 strategic region for Globo Cabo, representing the third largest subscriber area behind São Paulo and Rio de Janeiro. With a higher level of disposable income, the area is an important industrial and educational center. The acquisition will enable Globo Cabo to strengthen its leadership status and consolidate its position within the Brazilian cable television market. With the conclusion of this transactions, Globo Cabo will hold 100% of Unicabo s capital and will subsequently merge Unicabo s operations into the Globo Cabo network. Globo Cabo s financial statements will fully consolidate Unicabo s revenues and EBITDA. The Acquisition Process The acquisition of the remaining 50% of Unicabo will consist of two steps: 1. Debt to Equity Conversion: R$35 million of intercompany debt held by Globo Cabo will be converted into Unicabo equity, according to the same valuation as the acquisition outlined below, increasing Globo Cabo s stake in Unicabo to 57%. 2. Acquisition: Globo Cabo will issue 40 million new preferred ( PN ) shares, representing 1.8% of the total number of the outstanding shares in exchange for 64,750 shares that belong to the Nogueira Family and represent the remaining 43% stake. The acquisition is structured as a stock-for-stock transaction with a fixed exchange ratio and no collar. Globo Cabo and the Norgueira Family negotiated the exchange ratio based on a relative contribution analysis of the following key operating and financial parameters: homes passed, subscribers, network extension, net revenues and EBITDA. Other Information The complete Valuation Analysis of the share exchange ratio used for the transaction, as prepared by Chase Manhattan Bank, is available from the Company upon request. Globo Cabo and Unicabo have solicited the services of Ernest & Young to audit the financial statements of Unicabo through the record date of April 30, 2000, as well as conduct an independent valuation of Unicabo s net asset value. Changes in shareholder s equity following April 30, 2000 will be recorded on Globo Cabo s financial statements. Ernest & Young confirmed the absence of any conflict of interest regarding the use of net asset value and related activities as a basis for the auditor s report and Valuation Analysis of the net shareholders equity of Unicabo. All relevant requirements have been fulfilled with Anatel, the regulatory agency for the telecommunications sector, and are pending formalization procedures. Globo Cabo s Board of Directors and the respective Managements of Globo Cabo and Unicabo have approved the transaction, with the letter of intent having been ratified on April 5, 2000.

18 Page 18 The above transaction is subject to final approval by a Globo Cabo s Extraordinary Shareholders Meeting.