Prices as of
11/10/2008

Per share
ON - TMCP3 - R$ 80.00
PN - TMCP4 -  R$ 32.20
ADR – TMB – US$ 29.70

Free Float- ON Shares         3.0%
Free Float- PN Shares        63.8%
Free Float- Total                41.2%
Controlling Group             58.8%
Total ON Shares       13,466,059
Total PN Shares        22,741,002

HIGHLIGHTS

• The customer base registered 257 thousand net additions, reaching 4,519 thousand customers in September. GSM customers represent 87.2% of the total customer base.
  
  
• Upholding the leadership in the state of Minas Gerais with a 28.9% market share.
  
  
• Net service revenue of R$ 363.0 million, an increase of 13.8% over 3Q07 and 8.1% over 2Q08.
  
  
• Sustained growth of data and VAS revenue, which increased 32.9% against the 3Q07, and represented 8.9% of the net service revenue in 3Q08.
  
  
• EBITDA margin of 26.7%, 5.4 percentile points below the 3Q07.
  EBITDA reached R$ 108.4 million, remaining stable in relation to 3Q07.
  
  
• Operating cash flow registered the amount of R$ 44.1 million in 3Q08, reverting the negative result presented in the previous quarter.
   
• Net cash reached R$692.3 million in 3Q08, an increase of 1.5% in relation to 2Q08.
  
  
• Net Profit of R$34.0 million, an increase of 233.3% in relation to 2Q08.
  
  
• Conclusion of the Tender Offer for the Disposal of Control (Tag Along) for the acquisition of outstanding common shares of Telemig Celular Participações and Telemig Celular.

Positive operating cash flow of R$ 44.1 million.

Operating Cash Flow (EBITDA-CAPEX) was positive by R$ 44.1 million in the quarter, reverting the result recorded in 2Q08 and a reduction in relation to the R$ 68.6 million recorded in 3Q07. The Operating Cash Flow plus the change in working capital registered a positive result of R$15.9 million in the 3Q08.

Investments focused on increasing network capacity and quality.

Telemig continues to expand its coverage area and its GSM network to improve network capacity and quality and increase the customer base. The CapEx in the 3Q08 represented a percentage on the net revenue of 15.8%. In the year-to-date R$ 185.5 million were invested, corresponding to 16.5% of the net revenue, as a result of investments in licenses.

 Signal and  coverage quality and  handsets mix contributed to the increase in the customer base

• Leadership in the state of Minas Gerais with a 28.9% market share, keeping the same level as in the 2Q08.
  
  
• The customer base in the end of 3Q08 reached 4,519 thousand customers, of which more than 3,9 thousand use the GSM/EDGE technology. Customer base growth was 25.0% and 6.0% compared to the 3Q07 and 2Q08, respectively. The signal quality and countrywide coverage, in addition to enhanced portfolio of plans and handsets, contributed to this growth.
  
  
• Net additions in the 2Q08 totaled 257 thousand new customers, an increase of 267.1% in relation to the same period of the previous year and a 27.9% market share of net additions in its operational area.

Reduction of SAC due to lower subsidies.

• SAC of R$ 45.0 in the 3Q08, down by 39.2% and 36.6% in relation to 3Q07 and 2Q08, respectively, as a result of the reduction in expenses with subsidies and publicity. Worthy of mention is that the period seasonality and the exchange variation contributed to this reduction. This indicator now follows the calculation criteria adopted by Vivo.

Reduction of monthly churn rate compared to 2Q08.

• Monthly churn rate of 3.3% in the quarter, higher than the 3.0% registered in the same period of last year, as a consequence of the increased commercial activity in the previous quarter campaigns. When compared to the 2Q08, the decrease was related to seasonality.

ARPU stable when compared to 2Q08.

• ARPU was R$ 27.4 in the quarter, 8.1% down from the 3Q07, due to the growth and the arithmetic dilution resulting from the accelerated growth. When compared to the 2Q08, ARPU remained stable.

MOU growth of 30.6% compared to 3Q07.

• Blended MOU increased by 30.6% when compared to the 3Q07, especially the outgoing MOU, stimulated by the usage incentive campaigns.  When compared to 2Q08, which is impacted by the campaigns and beginning of operations by Vivo, it shows a reduction of 10.5%.

Consistent revenue growth.

• Total net revenue increased by 20.1% and 10.1% compared to 3Q07 and 2Q08, respectively. This increase is a result of higher handset revenues associated to stronger commercial activity of higher network usage revenue associated to the customer base growth and of growth of data and VAS services usage.

Data and VAS revenue increased by 32.9% compared
 to 3Q07.

• Data and VAS revenue increased by 32.9% and 4.2% compared to the 3Q07 and 2Q08, respectively, mainly due to the increase in peer-to-peer SMS usage as a consequence of new activations offering data advantages.

• Cost of services increased by 24.1% over 3Q07 due to higher interconnection cost related to both the growth of outgoing traffic and increase of Fistel Fee associated to the customer base expansion.

• The cost of goods sold registered an increase of 100.9% in 3Q08 over 3Q07, due to higher number of gross activations, which represent an increase of 79.1%.  When compared to the 2Q08, cost of goods sold increased by 42.8% due to the activity in the period and the beginning of the foreign exchange appreciation.
  
  

• In the 3Q08, selling expenses increased by 13.7% over the 3Q07 due to the higher expenses with third party services, especially advertising and publicity. When compared to 2Q08, it recorded a reduction of 26.5% due to the decrease in the expenses with third party services and provision for bad debtors.
  
  

• Provision for Bad Debt - PDD recorded a reduction of 21.8% over 3Q07 and of 59.0% in relation to 2Q08. The amount of R$ 4.3 million represents 0.7% of the total gross revenue.
  
  

Reduction of 32.3% in G&A expenses in relation to 3Q07

• General and administrative expenses decreased by 32.3% when compared to the 3Q07 due, mainly, to the reduction in consulting and other expenses with technical administrative services. When compared to 2Q08, G&A expenses  remained almost stable.
  
  

• Other Operating Revenues/ Expenses recorded a revenue of R$ 2.7 million, lower than R$ 15.7 million posted in the 3Q07 and lower than R$ 16.6 million registered in the 2Q08. This reduction primarily results from the reduction in revenues from recovered expenses and from the increase in the expenses with taxes, duties and contributions.
  

Increase of 5.1 p.p. in the EBITDA margin in relation to 2Q08.

• EBITDA(earnings before interest, taxes, depreciation and amortization) in 3Q08 was R$ 108.4 million, an increase of 36.0% in relation to 2Q08, resulting in an EBITDA Margin of 26.7%. When compared to the 3Q07, EBITDA remained stable due to the increase in the revenue and costs on the same basis.

• Depreciation and amortization increased by 34.0% over the 3Q07 as a consequence of deferred assets amortization and the start of depreciation of sites activated for the Minas Comunica Project.

Increase of 159.2% in net financial revenues over the 3Q07.

In the comparison of 3Q08 over 2Q08, the net financial revenue increased by R$ 6.3 million. This is due, mainly, to a higher revenue from financial investments, which arises out of a higher effective CDI in the period (3.16% in 3Q08 and 2.70% in 2Q08) and a higher average balance of cash invested.

In the comparison with 3Q07, the net financial revenue increased by R$ 12.1 million. As in the comparison with the previous quarter, the effects which contributed to this result arise out of higher availability invested and higher effective CDI in the period (3.16% in 3Q08 and 2.78% in 3Q07).

On the other hand, in 3Q08 there was an increase in the financial expense on account of the adjustment at present value of the 3G licenses, as determined by law 11.638/07 and CVM instruction 469/08, in the amount of R$ 2.2 million.

Consistent net cash growth.

• On September 30, 2008, Telemig’s total debt for loans and financing was R$ 180.7 million, 86.4% of which denominated in foreign currency. The Company has hedged 98.1% of its debt against foreign exchange volatility. This debt was offset by cash and cash investments totaling R$ 968.3 million and by derivative assets and liabilities totaling R$ 95.3 million payable, resulting in net cash of R$ 692.3 million.

• Net Profit was R$ 34.0 million in the quarter, 233.3% higher than the 2Q08. Operating profit (EBIT) increased in relation to 2Q08.

Public Tender Offer for Disposal of share control of Telemig Celular Participações and Telemig Celular.

• On July 15, Vivo published the notice for the Public Tender Offer for Disposal of Share Control for the acquisition of outstanding common shares, continuing the acquisition process of Telemig Celular Participações and Telemig Celular. The price to be paid for Telemig Celular Participações’ common shares sold in the Auction  by the non-controlling shareholders that accepted said Offer was R$ 120.93 per Common Share and for Telemig Celular’s common shares sold in the Auction by the non-controlling shareholders that accepted said Offer was R$ 2,100.03 per Common Share. Said prices were monetarily restated from the Closing Date until the Financial Settlement Date of the Auctions, based on the Interbank rate (CDI) for the period.

• Additional information is available on Vivo’s Investor Relations Website at www.vivo.com.br/ri.

Telemig Celular Participações S.A.
Investor Relations
Ernesto Gardelliano
Carlos Raimar Schoeninger
Janaína São Felicio

Rua Levindo Lopes, 258 – Funcionários – 30.140-170
Telephone: +55 31 7420-1172
E-mail: ir@vivo.com.br

More information available at
 http://www.vivo.com.b/ir 

This press release contains forward-looking statements. Such statements are not statements of historical facts, and reflect the beliefs and expectations of the Company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the actual results of operations of the Company may be different from the Company's current expectations, and the reader should not place undue reliance on these forward-looking statements.  Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.

GLOSSARY

CAPEX – Capital Expenditure.
Working capital = Current Capital – Net Debt.
Net debt = Gross debt – cash – financial investments – securities –
asset from derivative transactions + liability from derivative transactions.
Net Debt / EBITDA – Index which evaluates the Company’s ability to
pay its debt with the generation of operating cash within a one-year
period.
EBIT – Earnings before interest and taxes.
EBITDA – Earnings result before interest. taxes. depreciation and
amortization.
Indebtedness = Net Debt / (Net Debt + NE) – Index which measures
the Company’s financial leverage.
Operating Cash Flow = EBITDA – CAPEX.
TSI – Telecommunication Service Index
EBITDA Margin = EBITDA / Net Operating Revenue.
PDD – Provision for bad debt. A concept in accounting that measures
the provision made for accounts receivable overdue for more than 90
days.
NE – Shareholders’ Equity.
Subsidy = (net revenue from goods – cost of goods sold + discounts
given by suppliers) / gross additions.

Technology and Services
1xRTT – (1x Radio Transmission Technology) – It is the CDMA 2000 1x
technology which, pursuant to the ITU (International Telecommunication
Union). and in accordance with the IMT-2000 rules is considered 3G
(third generation) Technology.
CDMA – (Code Division Multiple Access) – Wireless interface
technology for cellular networks based on spectral spreading of the
radio signal and channel division by code domain.
CDMA 2000 1xEV-DO – 3rd Generation access technology with data
transmission speed of up to 2.4 Megabits per second.
CSP – Carrier Selection Code.
SMP – Personal Mobile Services.
SMS – Short Message Service – Short text message service for cellular
handsets. allowing customers to send and receive alphanumerical
messages.
WAP – Wireless Application Protocolis an open and standardized
protocol started in 1997 which allows access to Internet servers through
specific equipment. a WAP Gateway at the carrier. and WAP browsers
in customers’ handsets. WAP supports a specific language (WML) and
specific applications (WML script).
ZAP – A service which allows quick wireless access to the Internet
through a computer, notebook or palmtop.
GSM – (Global System for Mobile communication) – used to transmit voice and data, built in co-mute system that divides the periods of each one of the transmission channels.

Operating indicators:
Gross additions – Total of customers acquired in the period.
Net additions = Gross Additions – number of customers disconnected.
ARPU (Average Revenue per User) – net revenue from services per
month / monthly average of customers in the period.
Postpaid ARPU – ARPU of postpaid service users.
Prepaid ARPU – ARPU of prepaid service users.
Blended ARPU – ARPU of the total customer base (contract + prepaid).
Entry Barrier – Value of the least expensive phone offered.
Customers – Number of wireless lines in service.
Churn rate = percentage of the disconnections from customer base
during the period or the number of customers disconnected in the period
/ ((customers at the beginning of the period + customers at the end of
the period) / 2).
Market share = Company’s total number of customers / number of
customers in its operating area.
Market share of net additions: participation of estimated net additions
in the operating area.
MOU (minutes of use) – monthly average. in minutes. of traffic per
customer = (Total number of outgoing minutes + incoming minutes) /
monthly average of customers in the period.
Postpaid MOU – MOU of postpaid service users.
Prepaid MOU – MOU of prepaid service users.
Market penetration = Company’s total number of customers +
estimated number of customers of competitors) / each 100 inhabitants in
the Company’s operating area.
Productivity = number of customers / permanent employees.
Right planning programs – Customer profile adequacy plans
SAC – cost of acquisition per customer = (70% marketing expenses +
costs of the distribution network + handset subsidies) / gross additions.
VC – Communication values per minute.
VC1 – Communication values for calls in the same area of the
subscriber.
VC2 – Communication values for Calls posted outside the area code
and inside the State.
VC3 – Communication values for Calls outside the State.
VU-M – Value of mobile use of the Cellular Operator network which the
Fixed Telephone Operator pays for a call from a Fixed Phone to a
Mobile Phone (interconnection fee).
Partial Bill & Keep – a concept under which, for calls between mobile operators in the same registration area (local), one operator is obliged to pay the other the interconnection charge (VUM) only if traffic exceeded 55% of the total in either direction, impacting revenues and interconnection costs. Discontinued in July 2006..