Net Serviços digital video base up 5,000 in 4Q09

Wednesday, February 10th, 2010
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SÃO PAULO — Net Serviços de Comunicação S.A. (BM&FBOVESPA: NETC3 and NETC4; NASDAQ: NETC; and Latibex: XNET), the largest cable company in Brazil and in Latin America with integrated services that include Pay TV (“NET”), Digital Video (“NET Digital”), High Definition Digital Video (“NET Digital HD”), bidirectional broadband internet access (“NET Vírtua”) and voice (“NET Fone via Embratel”), today announces its results for the fourth quarter of 2009 (“4Q09”).

Except where stated otherwise, the following financial and operating information is in accordance with the International Financial Reporting Standards (“IFRS”) on a consolidated and unaudited basis, including the operating and financial results of BIGTV as of December 29, 20081, and of ESC 90, which was acquired on June 30, 20091.

The Pay TV base grew 20% over 2008, with a total of 3,690,000 new subscribers. Net additions in the quarter came to 44,000 new clients and 619,000 new clients in the year. The Digital Video base increased by 5,000 in the fourth quarter to reach 989,000 clients, 11% up on 4Q08, representing a 27% penetration over the total pay TV base.

Operating Highlights (‘000, except otherwise indicated):

                                  4Q09   4Q08  Change
                                ------  -----  ------
Homes Passed                    10,777  9,784     10%
Bidirectional Homes Passed       8,552  7,190     19%
Pay TV Client base
 Connected Clients               3,690  3,071     20%
 Penetration over Homes Passed     34%    31%
 Churn Rate - last 12 months     15.7%  14.9%
 Digital                           989    887     11%

Client Base (thousand subscribers):

 1Q08   2Q08   3Q08   4Q08  1Q09*  2Q09*  3Q09*  4Q09*
-----  -----  -----  -----  -----  -----  -----  -----
2,561  2,710  2,922  3,071  3,347  3,480  3,645  3,690

*1Q09 includes BIGTV and 3Q09 includes ESC90.

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