TELE SUDESTE CELULAR PARTICIPACOES S.A. Tele Sudeste Celular Participacoes S.A. ('TSD'), (BOVESPA: TSEP3 (Common Shares); TSEP4 (Preferred Shares); NYSE: TSD), Discloses Today Its Consolidated Results For the Third Quarter Of 2004 (3Q04) RIO DE JANEIRO, Brazil, Oct. 29 /PRNewswire-FirstCall/ -- HIGHLIGHTS R$ million 3 Q 04 2 Q 04 variation % 3 Q 03 variation % Net operating revenue 490.5 469.0 4.6% 454.5 7.9% Net service revenues 406.6 388.3 4.7% 398.7 2.0% Net handset revenues 83.9 80.7 4.0% 55.8 50.4% Total operating costs (361.1) (340.2) 6.1% (276.6) 30.6% EBITDA 129.4 128.8 0.5% 177.9 -27.3% EBITDA Margin (%) 26.4% 27.5% -1.1 p.p. 39.1% -12.7 p.p. Depreciation and amortization (93.0) (94.2) -1.3% (107.7) -13.6% EBIT 36.4 34.6 5.2% 70.2 -48.1% Net profit 21.2 25.5 -16.9% 44.7 -52.6% Total number of customers (thousand) 4,065 3,924 3.6% 3,483 16.7% -- TSD's customer base increased by 16.7% and 3.6% when compared to 3Q03 and 2Q04, respectively, reaching 4,065 customers. -- Net additions in 3Q04 totaled 141 thousand new customers, 131.1% above the additions recorded in the same period of the previous year. The postpaid additions totaled 46 thousand clients. -- Market share of net additions was 42.7%, 27.8 and 2.9 percentage points above those recorded in 3Q03 and 2Q04, respectively. -- Churn dropped 0.3 and 0.6 percentage points when compared to 3Q03 and 2Q04, respectively, due to the implementation of customer loyalty programs by the Company. -- In relation to 2Q04, Blended ARPU increased by 0.9%. -- TSD's productivity increased by 57.5% and 34.8% when compared to 3Q03 and 2Q04. -- TSD covers all the municipalities, 100% of its area of performance, consolidating VIVO as the company offering the best coverage and quality of services. Tele Sudeste, along with Telesp Celular Participacoes S.A. (controller of Tele Centro Oeste Participacoes S.A.), Tele Leste Celular Participacoes S.A., and Celular CRT Participacoes S.A make up the assets of the Joint Venture undertaken by Telefonica Moviles and Portugal Telecom, operating under the VIVO brand, Top of Mind in the Brazilian market. On October, 2004 VIVO Group recorded 25 million customers, thus consolidating its market leadership. DATASOURCE: Tele Sudeste Celular Participacoes S.A. CONTACT: Charles E. Allen for VIVO, +55-11-5105-1172, or Web site: http//http://www.vivo.com.br/

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