Vivo Participações S.A.'s (Vivo) 3Q 09 revenues were above our expectations due to higher-thanexpected growth in Average Revenue Per User (ARPU). EBITDA and EBIT registered strong y-o-y growth and were significantly above our estimates due to higher-than-expected top-line performance and lower-than-expected selling expenses and handset costs. In light of strong 3Q 09 performance we are likely to revise our estimates and target price upwards. Until then we maintain our HOLD rating on the common stock. We will reassess our target price and rating in our 3Q 09 update report. Although we anticipate a negative currency impact on the ADR over the next 6-24 months and the target price supports a SELL at current levels, in light of possible upward revision in our estimates we maintain our HOLD rating on the ADR. We will reassess the target price and rating for the Vivo ADR in the coming weeks.

From September 2009, the Research Oracle will begin to accept research submissions from readers – whether amateur or professional analysts – from around the globe. To receive notification of the launch and rules, contributors may register now at
http://www.iirgroup.com/researchoracle/researchoracleaward