GVT Releases the Results for 1Q08 - Revenue Grew By 35%, EBITDA By 44% With EBITDA Margin of 37% And a Record Growth in Net Line Additions

CURITIBA, Brazil, April 14 /PRNewswire-FirstCall/ -- GVT (Holding) S.A. (Bovespa: GVTT3, Reuters: GVTT3.SA and Bloomberg GVTT3:BZ), a leading facilities-based telecommunications and Internet solutions provider company in Brazil, announces today its results for the first quarter of 2008 (1Q08). The following information is consolidated in Brazilian Reais (R$) pursuant to Brazilian Corporate Law.

PERIOD HIGHLIGHTS

Net Revenue grew by 34.7%, compared to 1Q07, reaching a total of R$290.2 million.

Revenue from core business (services based on GVT's lines in service and to its own customers) grew by 39.9%, reaching a total of R$260.7 million. This amount includes R$10.6 million from Geodex, which was acquired by GVT at the end of 4Q07;

Net revenue from Next Generation Services (NGS) grew by 73.4% reaching a total of R$68.1 million, which represents 23.5% of total 1Q08 net revenue. Revenue from broadband grew by 86.6%, which represents 15.7% of total 1Q08 net revenue;

EBITDA grew by 44.4%, reaching a total of R$107.2 million;

EBITDA margin reached 36.9% compared to 34.5% in 1Q07. EBITDA margin excluding Geodex's consolidation reached 37.4%, as Geodex long distance backbone business has lower margins than GVT's business;

Income before taxes increased by R$111.2 million, reaching a total of R$51.3 million;

Net Income increased by R$91.3 million, reaching a total of R$31.1 million;

Lines net additions reached a total of 128,778 lines (excluding Geodex), a growth of 69.6% compared to 1Q07. Retail and SME Business Unit added 49,922 voice lines (growth of 121.0% compared to 1Q07) and 46,683 broadband (growth of 87.8% compared to 1Q07);

Capital Expenditure (CapEx) reached R$147.2 million in 1Q08, an increase of 141.4% compared to 1Q07. Total local accesses delivered in the quarter were 131,960 compared to 29,810 in 1Q07 and 128,010 in 4Q07.

Conference Calls - Tuesday, April 15th, 2008
English
Time: 12:00 PM (Brazil) / 11:00 AM (US-ET) / 4:00 PM (London)
Phone: +1 (973) 935-8893
Replay: +1 (706) 645-9291
Code: 39240162
Webcast: www.gvt.com.br/ir

Portuguese
Time: 2:30 PM (Brazil) / 1:30 PM (US-ET) / 6:30 PM (London)
Phone: +55 (11) 2188-0188
Replay: +55 (11) 2188-0188
Webcast: www.gvt.com.br/ri

First Call Analyst:
FCMN Contact:

Source: GVT

CONTACT: IR Contact, Rosangela Sutil de Oliveira, Investor Relations
Manager, + 55 (41) 3025-9900, ir@gvt.com.br

Web site: http://www.gvt.com.br/ir

2008-04-14 20:25:06 0335543 PRNEWSWIRE