Net Serviços Digital Video base reaches 1 million clients

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 one of the largest 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”), announces today its results for the first quarter of 2010 (“1Q10”).

The Pay TV subscriber base ended 1Q10 with 3,776,000 clients, up 13% from 3,347,000 at the end of 1Q09. Net additions totaled 86,000 in the quarter. The Digital Video base reached 1,025,000 clients, up 11% from 1Q09, representing 27% penetration in the overall Pay TV base.

NET is a pioneer in the launch of HD, and this year one of its main objectives is to expand the number of subscribers with access to high definition (HD), taking advantage of the opportunity presented by the World Cup. As a result of its efforts, NET has become the leading Pay TV operator in the HD segment in Brazil and enjoys the highest recall among operators offering this service, based on the survey conducted in February this year by TNS Research International. With various packages featuring channels that truly spark the interest of consumers, NET continues to expand its leadership.

Operating Highlights (‘000, except otherwise indicated):

                                  1Q10    1Q09  Change
                                ------  ------  ------
Homes Passed                    10,914  10,327     6%
Bidirectional Homes Passed       8,765   7,666    14%
 Pay TV Client base
 Connected Clients               3,776   3,347    13%
 Penetration over Homes Passed     35%     32%
 Churn Rate - last 12 months     15.9%   15.0%
 Digital                         1,025            11%

 1Q08   2Q08   3Q08   4Q08  1Q09*  2Q09*  3Q09*  4Q09*  1Q10*
-----  -----  -----  -----  -----  -----  -----  -----  -----
2,561  2,710  2,922  3,071  3,347  3,480  3,645  3,690  3,776

* 1Q09 includes BIGTV and 3Q09 includes ESC90.

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