1May 5th, 2006

TIM Participações S.A.

1Q06’s Results

2

Key Achievements

Market Performance

Financial Performance

3

Key Achievements

Status of Corporate RestructuringOn March 16th the shareholders meeting approved the TIM Celular merger with no contrary vote.No shareholders exercise the withdrawal rights that ended on April 19th.

On May 4th. the Board approved a further step of our reorganization.

Improving the Corporate Structure

Current Structure Proposed StructureTIM Participações

TIM Celular TIMNordeste TIM Sul

TIM Maxitel

TIM Participações

TIMNordeste TIM Sul

TIM Maxitel

TIM Celular

TIM Participações

TIM Celular+ TIM Sul

TIM Maxitel+ TIM Nordeste

TIM Participações

TIM Celular+ TIM Sul

TIM Maxitel+ TIM Nordeste

This transaction, that is being submitted to the Anatel approval will:optimize even more the company’ structure allowing costs reduction related to the maintenance

of two separated legal entities; and,accelerate the right to use the net operating losses accumulated in the merging companies,

which amounted to R$ 5.5 billion at the end of 1Q06.

We expect to close the transaction during the 3Q06.

100%

100%

100%100% 100%

100%

4

Key Achievements

Solid Growth

44% YoY growth in total customer base vs. 30% of the Brazilian market

The highest % of postpaid vs. peers: 20.6% vs. 19.5% of the market

Leader in postpaid net additions in the quarter (30.2%) achieving 24,8% on share by the period end

Leader in Innovative technology: 37% of GSM Market

Successful client retention: churn rate stable

Improved CRM and segmentation tools enabling acquisition cost reduction

Strong Financial Performance (YoY)

21% growth in net service revenue

45% VAS revenue increase

21% reduction in subscriber acquisition cost

Stable bad debt rate over total gross revenue: 3.1%

58% growth in EBITDA achieving 24,3% margin (+6.2 p.p. compared to 1Q05)

On track to the break even: 34% net losses reduction

TIM: Profitable growth in a highly competitive market

5

Key Achievements

Market Performance

Financial Performance

6

Continuing mobile market growth in the first quarter

National Market and Penetration

Over the last 12 months TIM´sclient base grew by 43.5%, strongly above the market average (+30.3%)

Slowing market growth rate, but continuing to outperform expectations: 3.7% QoQ and 30.3% YoY

More rational market with some strong subsidy focused on postpaid and low-end handsets

Total market lines (mln) National Penetration

68,6

75,580,0

86,289,4

38.0%41.6%

44.0%

1Q05 2Q05 3Q05 4Q05 1Q06

YoY Lines growth

Market

TIM

Source: Anatel’s data base.

39.7% 39.8% 37.6%60.6% 60.8% 56.4%

30.3%43.5%

31.4%

48.5%

47.3% 48.1%

7

Market share performanceMarket share

Narrowing the gap vs. 1st Player and widening the distance from the 3rd Player

Vs. First Player Vs. Third Player

TIM market share gap vs. main Competitors

FirstPlayer

ThirdPlayer

TIM

~ - 6 pp

~ + 2 pp

~ + 1 pp

-18.0

-10.2

0.5 1.81Q05 2Q05 3Q05 4Q05 1Q06

1Q05 2Q05 3Q05 4Q05 1Q06

1Q05 2Q05 3Q05 4Q05 1Q06

YOY growth

~ -7.7 p.p. YoY

Sound market results achieved in São Paulo capital: 25.9% market share (+ 7.4 pp YoY), achieving 2nd position in region.

~ +1.2 p.p. YoY

39.3%37.7% 36.1%

34.5% 33.7%

23.5%23.4%22.9%22.2%21.3%

21.8%21.6%21.8%21.5%20.8%

8

Customer base: combining growth and improved mix

21.3% 23.5%Market Share (%)

TIM Lines (mln)

14.6

21.0

69%

85%

1Q05 1Q06

GSM lines

Postpaid mix

19.7%

18.9% 18.9%19.2% 19.5%

19.4%

18.0% 18.6%18.9% 19.2%

20.6%20.1%19.9%20.3%

21.1%

1Q05 2Q05 3Q05 4Q05 1Q06

TIM Market Competitors

+ 43%

YoY

Leader in postpaid net additions in the quarterStrong quality of the base: 20.6% postpaid lines vs. 19.1% 1st Playerand 16.4% 3rd Player

Source: Anatel’s data base.

+ 75%

QoQ

+ 0.5 pp

+ 0.3 pp

+ 0.3 pp

9

1Q05 1Q06

5.3X 5.0X

190 150

1Q05 1Q06

-21%

1Q05 1Q06

+ 0.1 p.p.

2.4%2.3%

Churn broadly stable

Growing with optimized retention and acquisition cost SA

CSA

C/A

RPU

Mon

thly

Chu

rnra

te

Successful value & loyalty strategy

Record gross additions with tight acquisition cost control

Rational client acquisition strategy: improved mix of gross additions

Reduced churn in the corporate segmented churn: -1.4 p.p., and stable overall rate.

% postpaid gross adds

19.7%23.8%R$

10

Key competitive advantages

Focus on “TIM Brasil” plans(8 all-inclusive bundles)

Plug-in’s for high usersInternational RoamingCommunity (family offer)Subsidy focused on high- end segment

TIM Current differentials Main Growth DriversPost-Paid

Pre-Paid Deeper segmentation (new pre-paid plans “TIM +”)

Low acquisition cost: SIM Card + Traffic offer

Subsidy reduction

Launch of exclusive “TIM + 25”and “TIM + 5” high user pre-paid plan

Building up a total customer caring leadership

Strong innovation drive & launch of exclusive offerBlackberry / Nokia communicator/Treo EDGELong distance and internationalroaming offers

Dee

per s

egm

enta

tion

of o

ffer

Business

Volume discount for nationwide contracts

VASSMS/MMS “Carta Servizi” asa serviceRe vamp the wap portal

Evolution of VAS from an attribute of positioning

to revenue driver Mob

ility

, con

veni

ence

and

cut

ting-

edge

VA

S

11

Successful marketing activitiesDeeper segmentation of Offer: Consumer market

TIM “Chip Only”Bonuses for recharging

made in 48 hoursSignificant Increase in recharge made in 48 hours after the activation

Offers Results

“TIM + 25”& “TIM + 5”

Rewarding outgoing traffic Strong participation in the gross addition for the segment in the period

Boosting postpaid gross additions: +70% growth from launch

Post

paid

Prep

aid

“TIM Brasil Plans”Complete and differentiated offers combining voice and

data service

“TIM Mais 40”& “TIM Conta Fixa”

Focus on convenience:Control of expenses

“TIM Conta Fixa”: 33% of postpaid consumer gross adds

“TIM Light”: 24% of postpaid consumer gross adds

Double ARPU compared to the average for the segment

12

Business segmentStrong innovation drive & Launch of exclusive offers

29%

Competitors

National Corporate Market Share 1

1 Source: Pesquisa - Dimensionamento do Mercado Corporativo Brasileiro de Telefonia Celular - Ericsson Business Consulting;

Estudo Pyramid e estimativas marketing.

TIM 1Q06 Line growth per segment

+43%yoy

+70%yoyBusiness Segment

Total Lines

%

First in Brazil to offer: > 1 year exclusiveNational coverageInternational roamingMost advanced handsets portfolioNew offer “Blackberry Professional”

Blackberry: Enlarging the portfolio of services

All functionalities in a easy and cheap way

New plan combining volume and convenience(monitoring expenses)

“Plan Company Control”

International Roaming

Focus on capturing heavy usersLocal rate promotion

SME market share: 30.4%

13

VAS True Care: Easy & Useful InnovationSegmentation evolution:

community concept

• Re launch of the WAP portal

• Strategic contents partnership

SMS Boost

• Launch of the ”carta servizi”SMS+MMS

• Stimulate premium SMS

Increase of services penetration

• Data transmission on EDGE

• Push e-mail: Blackberry

• VAS enable handset portfolio

7,6%

Blackberry Professional: competitive & innovative solution

SMS promotional for weekends

Regional approach (contents and offers)

Easy configurations for SMS, MMS and Data

New site WAP and enhanced contents

14

Size: more than 30 million contacts in the quarter

Leveraging on customer care

1Q05 1Q06

1Q05 1Q06

Efficiency: reduction in average attending time

Effectiveness: increase % of answered call

Result: best positioned in complains rate among major Players

Com

plai

ns p

er 1

,000

clie

nts

Other Players

TIM

Source: Anatel CRC – April 06

+6%

-9%

1st player

3rd player

4th player

15

Key Achievements

Market Performance

Financial Performance

16

17%

83%

6.3%

~ +3 pp

~ +2 pp

~ -5 pp1st player

3rd player

TIM

Strong Growth Revenue and Share in the Market

R$ mln

Gross Revenue

Handset Sold (thousands) 1,110 -7%

Average handset prices (R$) 359.7

Value Added Service (R$ mln) 181 + 45%

+ 15%

Handsets Revenue (R$ mln) 423 + 7%

2,285 + 23%

Gross Revenues Analysis1Q06 YoYYoY

+21% Traffic Volume (Bln min.) 5.1 + 33%

Voice (R$ mln)

2,889.02,378.4

Handsets sales

VAS revenue over Service

Service

1Q05 1Q06

15%

7.3%

85%Strong push on

chip sales (“Chip Only”), as a low acquisition cost

strategy

% of mid-high handset sold 40% + 17pp

Sustainable Growth

Total Net Revenues 2,132 +18%

Net Service Revenues 1,847 +21%

1Q05 1Q06

47%22%31%

42%24%34%

Net Services Revenue share top 3 players

Confirming outperformance for net service revenues growth:

+21% YoY vs. -1% 1st player and 19% 3rd player

17

ARPU Performance

Keeping strong gap in ARPU vs. marketTrend impacted by constant market build-up

and strong seasonality:

ARPU Analysis

Seasonal ARPU trend in the Market

4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05

-10%

-8%

124.4

6.3%

1Q05VAS Revenues (R$ Mln)

% over Gross Services Revenues

181.0

1Q06

VAS Revenue

7.3%

YoY+45%

Speeding-up VAS

64%

36%

SMS/MMSP2P

Data &Interactive

service

Growth YoYUsersSMS P2P + 58%MMS P2P + 83%Data + 239%

UsageSMS P2P + 54%MMS P2P + 52%Data + 336%

ARPU (R$)

32.8 33.6

26.7 27.0

3Q 05 4Q 05

+23% +24%

TIM

Peer avg.*

30.024.5

1Q 06

+23%

*Weighted average 1st and 3rd player** Estimated

1Q06

-9%/10%

18

EBITDA

(A) + (B)

A) Variable costs 1Q06

InterconnectionHandsets Cost

- 4.6 pp

B) Fixed & Commercial 1Q06Commercial expensesG&A and Others

Industrial cost

-1.0 pp-0.4 pp

-0.5 pp

-1.6 pp-6.2 pp

Weight on EBITDA Margin 1

1 Calculated as YoY change of the OPEX weight on total revenues

EBITDA Performance

R$ Mln

Labor cost +0.3 pp

-0.7 pp-3.9 pp

YoY

+58%

EBITDA Margin over Total Net Revenue

518.2327.3

1Q05 1Q06

18.1%24.3%

+6.2 p.p.

High entry prices handsets with positive impact

on subsidies level

Headcount growth lead by: CRM’s

improvements, and pre and post-sale

supporting

19

From EBITDA to Bottom Line

(R$ Million)

EBITDA DepreciationAmortization

EBIT Net Financial

Income

Taxes and Others

Net Losses

∆ YoY

On track to the break-even point

+58% +25% -74% +29% 6%

(36.5) (151.8)

518.2 (547.0)

(86.5)(28.7)

+35%(R$ mln) 191.0 80.0-108.7 82.3 -19.6 -2.1%

19.4

Minorities

-100%

R$ MlnR$ Mln

20

Net Financial Position

43% of 2005 capex was accounted in the 4Q05, and disbursements made in the 1Q06 30.3% of the 2005 handsets were acquired in the 4Q05 and disbursements made in the 1Q06 Fistel fee on FY05 customer base paid in one installment on March 06

(97)

4Q05

(1,536)

1Q05 1Q06

Net Financial Position (QoQ Analysis)

Impact of strong working capital seasonality:

(1,386)

Net FinancialPosition

Dec05

OperatingFree Cash Flow: 1,250

Net FinancialPosition

1Q06

(1,536)

(97)

(1,598)

OperatingWorkingCapital

EBITDA: +518

CAPEX: (169)

(37)

DividendsIncome Taxes

(96)(56)

Net Financial Results: (87)

Others: (9)

R$ Mln+349

EBITDA-CAPEX

Other non operating

Historically significant cash generation in the forthcoming

quarters

CAPEX 4Q05: (1,089)

FISTEL fee on FY05: (302)

Handsets acquired 4Q05: (516)

Other changes: +309

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Statements in this presentation, as well as oral statements made by the management of TIM Participações S.A. (the “Company”, or “TSU”), that are not historical fact constitute “forward looking statements” that involve factors that could cause the actual results of theCompany to differ materially from historical results or from any results expressed or implied by such forward looking statements. The Company cautions users of this presentation not to place undue reliance on forward looking statements, which may be based on assumptions and anticipated events that do not materialize.

“Safe Harbor” Statements

Investor RelationsAvenida das Américas, 3434 - Bloco 01

6° andar – Barra da Tijuca

22640-102 Rio de Janeiro, RJ

Phone: +55 21 4009-3742 / 4009-3751/8113-0571

Fax: + 55 41 4009-3990

Visit our Website:

http://www.timpartri.com.br