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PLIM4: R$ 0.29/share (Bovespa) NETC: US$ 0.90/ADR (1ADR=10 shares - Nasdaq) XNET: EUR$ 0.77/10 shares (Latibex) Total number of shares: 2,028,855,530 Market Value: R$ 588.4 million Closing price: 03/28/03 Net Serviços Announces Fourth Quarter 2002 Financial Results São Paulo, March 28th, 2003 – Net Serviços de Comunicação S.A., (Bovespa: PLIM4 and PLIM3; Nasdaq: NETC; Latibex: XNET), the largest Pay-TV multi-service operator in Latin America, an important provider of bi-directional broadband Internet access (Vírtua) and multimedia and data communication services for corporate networks, today announced its earnings results for the fourth quarter of 2002 (4Q02). The following financial and operating information, except where otherwise stated, are presented in U.S. GAAP and on a consolidated basis.

Average exchange rate increased from R$ 3.12/US$ in 3Q02 to R$ 3.68/US$ in 4Q02, resulting in an average depreciation of 17.6%. This fact, which affected results in US Dollars, will be referred to herein as the “Real depreciation”. End period exchange rate decreased from R$ 3.89/US$ in 3Q02 to R$ 3.53/US$ in 4Q02, resulting in an appreciation of 9.3%. This fact, which affected results in US Dollars, will be referred to herein as the “End Period Real appreciation”. • Net revenues(1) decreased 15.1% in 4Q02 compared to 3Q02, totaling US$ 78.9 million, and decreased 18.2% in 2002 compared to 2001, to US$ 403.5 million from US$ 493.1 million. • EBITDA(2) was negative US$ 8.0 million in the quarter compared to positive US$ 19.9 million in 3Q02. In the year, EBITDA was US$ 70.5 million, a 42.0% drop compared to US$ 121.4 million in 2001. The non-recurring tax contingencies occurred in the quarter was the main reason for this consolidated EBITDA decrease. It is important to notice that the Company maintains its solid operating capacity; if the effect of these contingencies were excluded, Consolidated EBITDA would have totaled US$ 10.1 million in the quarter and US$ 89.2 million in the year. This would represent a 45.7% drop compared to 3Q02 and a 26.5% drop compared to 2001, due to a higher exchange rate and an increase in programming expenses in local currency. • Net Debt ended the year of 2002 totaling of US$ 308.2 million, a reduction of 0.6% compared to US$ 310.1 million in 3Q02 and a 54.7% drop compared to US$ 680.0 million in the previous year. • Net loss(3) was US$ 78.4 million (US$ 0.04 loss per share), less than the loss of US$ 116.8 million (US$ 0.06 loss per share) registered in 3Q02. In 2002, net loss totaled US$ 701.0 million, a 100.6% increase compared to US$ 349.4 million in 2001. • Pay-TV ARPU (Total Gross Revenues excluding Sign-on and hook-up revenues divided by the average number of connected subscribers) decreased 14.5%, reaching US$ 21.98 compared to US$ 25.71 in 3Q02. Compared to 2001, ARPU decreased 11.5% from US$ 30.62 to US$ 27.11. This result is a consequence of the Real depreciation, despite the fee readjustments in the Southern Region and higher PPV sales. • Broadband ARPU was US$ 17.71, a decrease of 4.2% compared to an ARPU of US$ 18.48 in the previous quarter. Although the company showed an improvement in the subscribers base mix due to partnerships with some ISPs, the Real depreciation offset the result in US dollar. Compared to the previous year, ARPU dropped 23.8% because the ISPs rebate revenues weren’t accounted in all months and due to the higher exchange rate. _______________________________________ (1). BR GAAP: Net Revenue was R$ 290.8 million, fairly stable compared to R$ 292.5 million in 3Q02. (2). BR GAAP: EBITDA was negative R$ 20.5 million compared to R$ 60.5 million in 3Q02. (3). BR GAAP: Net loss in 4Q02 was R$ 307.1 million compared to R$ 422.4 million in 3Q02. OPERATING PERFORMANCE • The subscribers base ended the year with 1,323.3 thousand, a drop of 1.1% compared to 1,338.2 thousand subscribers in 3Q02 and a 7.4% drop compared to a base of 1,428.4 thousand in the end of 2001. This result is a consequence of lower marketing expenses and increasing selectivity and cautiousness regarding installation investments through the year, due to capital restrictions. • The quarterly annualized churn rate dropped from 17.9% in 3Q02 to 13.8% in 4Q02. This decrease is due to this higher selectivity and actions focused on customer satisfaction that brought significant results, such as the better performance of the call center. Moreover, the retention islands started to present a positive result, reverting 49% of the calls requesting disconnections in São Paulo Region, 20% in Rio de Janeiro Region and 39% in the Southern Region. • In the year of 2002, the Company sold more than 259,000 PPV events, an increase of 25% in comparison to 206,000 events sold in 2001. PPV sales penetration rate in PPV-enabled areas reached approximately 25%. In December 2002, close to 78% of subscribers were located in such areas. • The active broadband subscribers base reached 55.7 thousand, an increase of 9.9% compared to 50.7 thousand in the previous quarter and of 12.6% compared to 49.5 thousand in the end of 2001. Thus, the penetration in the active Pay-TV subscriber base increased to 4.2%, and, when considering only the subscriber base that has already activated bi-directional access, the penetration also increased, reaching 12.9%. • Vírtua’s annualized churn rate was 18.2%, a lower result when compared to 19.9% in 3Q02. This rate remained fairly stable when compared to the previous quarter, 18.5%, which excluded the effects of the change in the control system. Churn is approximately 5 percentage points higher than 4Q01, mainly due to subscribers moving to areas without bi-directional technology, where the company does not offer the service. • Comparing to 3Q02, the number of corporate network stations increased 1.8% and the number of company-owned stations increased 8.2%. Among the new contracts signed in the quarter, the highlights are BR Distribuidora, Glaxo and Duke Energy. • The initial results of the Call Center, after being outsourced to EDS, presented a general performance improvement when compared to the period before the outsourcing, as shown below:

• Further details about the Company’s operating performance in the quarter can be found at the February 18th press release, available at the Investors Relations section of our website www.netservicos.com. CONSOLIDATED EARNINGS ANALYSIS

• Gross revenues totaled US$ 96.0 million, decreasing 14.8% compared to US$ 112.7 million in the previous quarter. In 2002, gross revenues reached US$ 488.1 million a 17.0% drop compared to the year of 2001. Gross revenues are comprised of the following: 1. Pay-TV subscription revenues(4) reached US$ 83.2 million, a 14.3% decrease compared to the previous quarter. Pay-TV revenues were mainly affected by the Real depreciation and the decrease in the subscriber base, which were mitigated by the monthly fees readjustment of 11.0% in the Southern Region - occurred in September and calculated according to the IGP-M inflation index. In 2002, subscription revenues dropped 16.3%, totaling US$ 421.0 million against US$ 502.8 million in 2001, as the increase of subscription revenues in Reais was offset by the higher exchange rate in the year. 2. Average hook-up revenue (per new subscriber) reached US$ 44.99, a 2.3% increase compared to US$ 43.99 in the previous quarter; although the company started to offer discounts, in 4Q02, to former subscribers and subscribers coming from competitors. The lower direct selling costs in 3Q02 resulted in higher Deferred Sign-on and Hook-up Fees, which decreased Net Hook-up Fee Revenues. In the year, there was a 12.7% decrease and the average hook-up fee reached US$ 56.66. The Real depreciation offset the increase in Master and Standard packages’ hook-up fee. 3. Pay-Per-View revenues (PPV) dropped 45.2% compared to 3Q02, registering US$ 2.7 million against US$ 5.0 million in the previous quarter. This is due to the seasonal characteristic of this product, since sales of Brazilian Soccer Championship mainly occur during 3Q02, and also by the impact of the Real depreciation. In 2002, despite higher sales volume and price readjustments of a la carte channels, PPV revenues in US Dollars dropped 14.3% and totaled US$ 16.6 million compared to US$ 19.4 million in 2001 due the higher exchange rate during 2002 and the closing of the PSN channel operations. 4. Corporate network revenues reached US$ 3.8 million, remaining fairly stable compared to the previous quarter. The increase in revenues from network implementation services for new customers was totally offset by the Real depreciation in the quarter. In 2002, revenues decreased 24.1% due to the renewal of some of the contracts for prices below the ones previously practiced, the lower number of company-owned stations in 2Q02, which only resumed growth in the last quarter and also due to the higher exchange rate during the year. 5. Broadband revenues(5) were positively impacted by the increase in the number of subscribers, reaching US$ 3.0 million in 4Q02, 3.3% above the previous quarter result of US$ 2.9 million. In 2002 broadband revenues increased 6.3%, mainly due to the increase in the subscriber base, reaching US$ 13.2 million, a result that was mitigated by the higher exchange rate. • Services and other taxes, which include cancellations and sales taxes, reached US$ 17.1 million, a 13.6% decrease when compared to US$ 19.9 million in 3Q02. The Real depreciation offset the effect of the higher number of disconnections during 4Q02. In the year, there was a decrease of 10.8% in services and other taxes, as the higher exchange rate in 2002 compensated the increases in disconnections and cancellations and in the ICMS tax rate in the State of São Paulo, impacting four of our ten Vírtua operations. • As a result of the aforementioned, Net Revenues decreased 15.1% in 4Q02 compared to 3Q02, totaling US$ 78.9 million, and decreased 18.2% in 2002 compared to 2001, to US$ 403.5 million from US$ 493.1 million. _______________________________________ (4) BR GAAP: Pay-TV subscription revenues reached a negative of R$ 306.8 million in 4Q02 compared to R$ 304.3 million in 3Q02. (5) BR GAAP: Broadband revenues increased 21.4% from R$ 8.9 million in 3Q02 to R$ 10.8 million this quarter.

• Direct Operating Expenses were US$ 48.9 million in 4Q02, 12.0% lower than the result of US$ 55.5 million registered in the previous quarter, and US$ 235.5 million in 2002, 10.9% lower than US$ 264.3 million totaled in 2001. The main reasons for such performance are as follows: 1. Programming and Royalties(6) were US$ 30.5 million in the quarter, representing 38.7% of net revenues. This 13.3% drop compared to US$ 35.2 million in 3Q02 results from the lower impact of the Brazilian Soccer Championship PPV expenses and the Real depreciation. In a year-over-year comparison, there was a 5.6% decrease, totaling US$ 146.5 million compared to US$ 155.2 million in 2001. This decrease was a result of the higher exchange rate in 2002, but the readjustment of programming fees partially offset it. In order to reduce the influence of exchange rate variations on programming fees, the Company concentrated efforts on the elimination of the existing currency mismatch. The negotiations to convert programming costs to Real-denominated contracts adjusted by inflation rates are in an advanced stage and most of the programming costs have already been converted to Reais beginning in 2003. 2. Network Expenses totaled US$ 5.4 million, a 5.8% decrease over the US$ 5.8 million registered in the previous quarter. These lower expenses are the result of the Real depreciation, as increases in installation components at Vicom and pole rentals fees in São Paulo impacted the results in Reais. In 2002, there was a decrease of 5.2%, mainly due to the higher exchange rate, which offset the increase in network energy expenses due to a tariff adjustment and the increase of the above-mentioned expenses. 3. Customer Relations were US$ 1.8 million this quarter compared to US$ 2.1 million in 3Q02, a 14.0% decrease, as a consequence of the cost reduction policy implemented by the Company and the Real depreciation. This also influenced 2002’s figures, which dropped 26.5% from US$ 14.6 million to US$ 10.7 million. 4. Payroll and Benefits expenses totaled US$ 5.0 million, a 35.6% decrease over the previous quarter. This result shows the real effect of outsourcing the call center, given that although the outsourcing was implemented in 3Q02, one-time severance expenses overcame the savings in that quarter. This result was also positively affected by the Real depreciation. In 2002, payroll and benefits expenses decreased 18.6% from US$ 38.7 million to US$ 31.5 million as a result of both the outsourcing and the higher exchange rate during the year. 5. Other Operating Expenses, including third-party services, increased 30.5% to US$ 6.1 million in 4Q02. The Real depreciation partially offset the effect of an extraordinary, one-time payment to EDS. In relation to 2001 there was a 25.7% decrease, due to the higher exchange rate during the year and partially offset by the outsourcing of the call center. • Selling, General and Administrative Expenses (SG&A) totaled US$ 38.0 million, an increase compared to US$ 17.4 million in the previous quarter. In the year, there was a decrease of 9.0%, totaling US$ 97.6 million. This result is compounded as follows. 1. Selling Expenses totaled US$ 0.9 million compared to US$ 0.5 million in 3Q02, as a consequence of the increase in third-party services regarding new sales and the increase in advertising expenses. However, selling expenses in 2002 dropped 71.9% as a consequence of the cautious strategy adopted throughout the year. 2. General and Administrative Expenses(7) reached US$ 12.5 million, a drop of 8.9% compared to US$ 13.7 million in the 3Q02. The main reason for this decrease was the Real depreciation effect, partially offset by an increase in third-party services expenses and additional tax assessments in the cities of Recife, Porto Alegre and Rio de Janeiro, which totaled US$ 0.7 million. Compared to the previous year, these expenses dropped 28.4% due to the efforts to reduce expenses with personnel and office maintenance and also due to the higher exchange rate in the year. 3. Bad Debt Expenses reached US$ 2.3 million, or 2.9% of net revenues, compared to US$ 3.0 million in the previous quarter. This 23.7% drop is due to the Real depreciation and the recognition of losses in the Belo Horizonte operation in the previous quarter. Compared to the previous year, bad debt expenses totaled US$ 11.2 million, a 5.7% decrease, mainly due to the same reason above. 4. Goodwill Impairment was US$ 2.8 million in the 4Q02. Under SFAS 142, goodwill and indefinite lived intangible assets are no longer amortized, but are subject to annual impairment tests. The Company concluded the measurement tests for fiscal year 2002 and recognized a non-cash charge that reduced the carrying value of goodwill associated with the Vicom acquisition. 5. Other SG&A expenses were US$ 19.5 million, compared to US$ 0.2 million in the previous quarter. The increase in the quarter is a consequence of the recording of provisions for contingencies in an amount of US$ 18.8 million, which was made necessary due to new events and new analyses of the risks involved. The provisioned amounts are nonrecurring, and therefore should not affect future quarters. • The EBITDA(8) breakdown by operating segment in 4Q02 and on a consolidated basis, is as follows: 1. Pay-TV EBITDA in the quarter was US$ 9.1 million compared to US$ 19.3 million in 3Q02 and, in the full year, EBITDA was US$ 84.5 million compared to US$ 120.8 million in 2001, decreasing 52.6% and 30.0%, respectively. This result is a consequence of higher programming and G&A expenses in local currency, the recognition of goodwill impairment, as previously explained, and the effect of the Real depreciation. 2. Broadband EBITDA totaled US$ 0.8 million compared to US$ 0.2 million in 3Q02, mainly due to the increase of the subscribers’ base, which was mitigated by Real depreciation in the quarter. Compared to the previous year, broadband EBITDA was positive US$ 0.9 million compared to negative US$ 5.7 million. The main reasons for this improvement were the subscriber base increase, the improvement in the clients base mix and the cost reduction due to the organizational restructuring and the optimization of expenses. 3. Corporate Networks EBITDA increased to US$ 0.9 million from US$ 0.4 million in the previous quarter, an increase of 112.8%, as a result of the previously explained increase in revenues in Reais. Compared to 2001, there was a decrease of 40.1% as a consequence of the reduction of such revenues. 4. As a result, Consolidated EBITDA would have reached US$ 10.8 million in 4Q02 and US$ 89.2 million in 2002, which would mean a 45.7% drop in the quarter and a 26.5% drop in the year. This result, affected mainly by the depreciation of the Brazilian currency, demonstrates that the Company maintains its solid operating capacity. However, after consolidating provisions for contingencies, EBITDA in the quarter was negative US$ 8.0 million in the quarter and positive US$ 70.5 million in the year. • Depreciation and amortization expenses reached US$ 13.4 million in 4Q02, a 22.2% drop in relation to US$ 17.3 million recorded in the previous quarter. In 2002, depreciation and amortization expenses reached US$ 78.7 million compared to US$ 226.2 million in 2001. This decrease is explained by the higher exchange rate and the review of the useful life of some of the Company’s main assets, such as the network and decoders. • Operating Income (EBIT) was negative US$ 21.6 million in the 4Q02 compared to the positive result of US$ 2.8 million recorded in the previous quarter, due to the aforementioned factors. _______________________________________ (6)BR GAAP Programming and Royalties grew 2.1%, from R$ 110.6 million in 3Q02 to R$ 112.9 million this quarter (7)BR GAAP: General and Administrative expenses for the quarter were R$ 128.0 million compared to R$ 54.7 million in the previous quarter. (8)As calculated by us, EBITDA represents the sum of: (a) net income (loss); (b) minority interests in results of consolidated subsidiaries; (c) equity in earnings (i.e., companies in which we have between a 20% and 50% equity interest) net; (d) cumulative effect of accounting change; (e) income tax benefit (expense); (f) other non-operating expenses, net; (g) financial income; (h) financial expenses; (i) monetary indexation, net; (j) loss on exchange rate, net; (k) loss on write-down of equipment; (l) unusual charges and (m) depreciation and amortization. We present EBITDA in this press release because we believe EBITDA is a standard financial statistic commonly reported and widely used by analysts and other interested parties in the pay-TV industry. EBITDA should not be considered in isolation or as a substitute for net income or loss, as an indicator of operating performance or as an alternative to cash flow as a measure of liquidity. EBITDA also does not represent funds available for dividends, reinvestment or other discretionary uses. Because EBITDA is not determined in accordance with U.S. GAAP, EBITDA as calculated and reported by other companies may not be comparable to EBITDA as calculated and reported by us.

• Net financial expenses(9) were US$ 50.2 million, a significant improvement compared to US$ 116.9 million registered in the previous quarter. In 2002, these expenses totaled US$ 314.7 million, an increase compared to a result of US$ 239.4 million in the previous year. These results were originated as follows: 1. Monetary indexation, net reached a positive US$ 1.0 million, an improvement compared to negative US$ 12.2 million registered in the previous quarter. In the year, monetary indexation was negative US$ 26.0 million against US$ 38.8 million, a 33.0% decrease mainly due to the higher exchange rate in 2002. 2. Loss on exchange rate, net(10) was positive US$ 17.3 million, compared to a loss of US$ 85.0 million. This increase reflects the 9.3% Real appreciation in the quarter. In 2002 there was a loss on exchange rate of US$ 134.0 million, increasing 55.1% from US$ 86.4 million in 2001, also as a consequence of the higher exchange rate in the year. 3. Debt financial expenses(11) were US$ 30.1 million, a 82.3% increase over expenses of US$ 16.5 million in the previous quarter. The main reasons for this increase are higher provisions for charges related to financial obligation past due and unpaid and the Real depreciation. Comparing to 2001, these figures were 2.5% higher. 4. Other financial expenses totaled US$ 42.7 million, compared to US$ 13.3 million in the previous quarter. This increase is basically due to the recording of an IOF (tax on financial transactions) tax provision on transactions with related companies, in the amount of US$ 33.9 million to face tax risks involved given a recent decision in the Tribunal Regional de Justiça (Regional Court) that might cause controversy in the future. Compared to the previous year, these expenses reached an increase of 94.2% from US$ 43.9 million to US$ 85.3 million in 2002. In addition to this provision, this increase is also a consequence of the restatement of the AFAC during the year of 2002. 5. Financial income, considering hedge results, reached US$ 4.3 million, a 52.7% decrease compared to US$ 9.1 million in 3Q02, basically due to the adjustment of losses from hedge positions. However, financial income showed for an increase of 18.0% in the year, totaling US$ 20.2 million. • Net loss was US$ 78.4 million (US$ 0.04 loss per share), less than the loss of US$ 116.8 million (US$ 0.06 loss per share) registered in the 3Q02. In 2002, net loss totaled US$ 701.0 million, a 100.6% increase compared to US$ 349.4 million in 2001. _______________________________________ (9) Net Financial Result = Monetary indexation, net + Loss on exchange rate, net + Debt Financial Expenses + Other Financial Expenses + Financial Income (10) BR GAAP: Profit on exchange rate, net was R$ 79.6 million compared to a negative R$ 314.4 million in 3Q02. (11) Financial expenses = Debt Financial Expenses + Other Financial Expenses

• By the end of 2002, the company’s Total Debt was US$ 324.0 million, a decrease of 53.2% compared to US$ 692.5 million in 2001, as a result of the re-capitalization occurred in 3Q02. Total debt decreased 4.6% compared to US$ 339.5 million in the previous quarter, mainly due to the amortization of debt with the IFC, whose effects were partially offset by the Real depreciation. • The Cash Position dropped to US$ 15.8 million in 4Q02 from US$ 29.4 million in the previous quarter and US$ 12.5 million in the end of 2001. • As a result, Net Debt reached US$ 308.2 million in 2002, a reduction of 0.6% compared to US$ 310.1 million in 3Q02 and and a 54.7% drop compared to US$ 680.0 million in the end of 2001. • Net amortizations during the quarter totaled US$ 26.0 million. The amortizations were made to the IFC (US$ 17.7 million), and to the Eximbank (US$ 0.6 million). Additionally the company paid US$ 7.7 million regarding the Put of the Syndicated Loan - Net Sul Notes. • Dollar-linked debt decreased from 73% to 687% of total debt due to the payment to IFC and to Syndicated Loan - Net Sul Notes bondholders that exercised their puts.

• By the end of 2002, all of the Company’s indebtedness, except leasing, was classified as short-term. The company hasn’t been in compliance with its financial obligations since the decision, in early December, that the Company should re-evaluate its cash flow obligations, while it pursues an adequate capital structure. Therefore, accordingly to the debt indentures and private loans agreements, creditors have the right to request the maturities anticipation of the maturities of these obligations. The Company is aiming to finish the current debt re-equation process and to bring the situation back to normal as soon as possible. • Charges in connection with interest past due and unpaid were provisioned at the end of 4Q02. MANAGEMENT REPORT The year of 2002 for Net Serviços was pointed out by the beginning of a wide process of restructuring its operations and readjusting its capital structure. The stage of equation of the Company’s financing is intended to be concluded during the year of 2003. If in previous years the Company’s focused on the incorporation and capture of synergies provided by strategic acquisitions, mainly Net Sul and Unicabo, in 2002 it concentrated on the improvement of its business strategy and on all its main processes. Nevertheless, despite all that has been done in during the year, the international macroeconomic volatility and its consequences in Brazil were responsible for a financial result that was less favorable than expected. Among the measures implemented, we highlight the following: • The Customers Call Center Outsourcing. Concluded in August, the results shown by some indicators in the first months of EDS ahead of the call center were already presenting an improvement compared to the same period previous to its outsourcing. In Rio de Janeiro, for example, the percentage of answered calls in June was 35% and the average waiting time was over 6 minutes. At the end of the year, the answered calls percentage was already reaching 92% and the average waiting time dropped to 26 seconds. • Capital Structure Readjustment. The worsen foreign and Brazilian macroeconomic scenario damaged the positive effects of the measures taken by the management and led Net Serviços’ shareholders to decide to pursue a new capital increase in the Company. The recapitalization process was carried out in two stages: firstly the public distribution of shares, followed by the private issue of shares. The public distribution of shares was closed on August 15th and totaled R$ 597.5 million. The private distribution of shares, approved on August 19th and ratified on September 25th, totaled R$ 532.5 million, totaling more than R$ 1.1 billion injected in the Company. • Resource Management and Planning System. An important achievement in 2002, the implementation of the JDE system, which started operations at the closing of the 3Q02 results. With this new tool, the Company became more efficient in the information consolidation and in all of Net Serviços’ financial, accounting and logistics integration processes and operations, which imply in cost reduction as from the beginning of 2003. • Revision of Structure and Internal Processes. These actions promoted efficiency gains and allowed significant cost reductions. A new organizational structure was implemented, resulting in a 33% personnel reduction, as the Company finished 2002 with 3,152 employees, compared to 4,695 employees in 2001. The Extraordinary Shareholder’s Meeting held on May 2nd, 2002, approved important measures, which also were part of the already mentioned capital restructuring, such as the change in the Company’s denomination, the adoption of Bovespa’s Corporate Governance Listing Rules – Level 2, and the approval of the new Company’s Bylaws. The change in Company’s denomination from Globo Cabo S.A. to Net Serviços de Comunicação S.A. occurred on the day of the Shareholder’s Meeting and had as its main objective the association of the the Company’s name to the brandfor which the Company is known by its customers, emphasizing the care with the quality of services rendered to its subscribers. On May 10th, in order to continue this process, Net Serviços filed at the Comissão de Valores Mobiliários (CVM - Brazilian Securities and Exchange Commission) a request to register a public issue of shares. Simultaneously to the recapitalization process, Net Serviços was discussing a debt re-equation with its major creditors, in order to obtain a more adequate cash flow and to minimize the refinancing risk and moreover, to suit the Company’s Capital Structure. Since the announcement of the re-equation, the Company has continued to work with its creditors to finalize documents required to make the re-equation effective. However, the financial and capital markets condition in Brazil continued to deteriorate, as the Real continuously devaluated against the US-dollar, creating a significant impact in the Company’s cash flow, once the financial liabilities and programming costs were linked to US-Dollar. The Real devaluation also significantly increased the US-dollar denominated debt expressed in Reais. As a result, the assumptions underlying the re-equation that would enhance the Company's ability to refinance its financial obligations were not realized and therefore, the Company has concluded that the terms of the re-equation need to be revised. The Board of Directors decided on December 2nd, 2002 that the Company should re-evaluate its cash flow obligations while it pursued an adequate capital structure. This action was taken in order to preserve liquidity and assure the operational and financial sustainability in the short and medium term. It is important to highlight that this measure did not impact the operations nor the services rendered to Net Serviços subscribers. Continuing the process, the Company presented on March 17th, 2003 a re-equation proposal to its creditors, along with a new business plan, which was approved by the Board of Directors, which fully supports such proposal. The negotiations for the conclusion of the restructuring were then reinitiated, and the Company estimates to finish this agreement during the year of 2003. In January 2003, the Company’s Board of Directors and the Chief Executive Officer, Mr. Luiz Antônio Viana, considering that the essential goals of the administration, which began on October 1st, 2002 were achieved, decided in common agreement and fulfilling the supervening interests of all parties involved, to consider the CEO's mandate terminated. To this position the Board of Directors elected Mr. Francisco Tosta Valim Filho, who has previous experience in the Pay-TV segment and came to contribute in a valuable manner to the ongoing redirection and strengthening of the operations, as well as to the conclusion of the re-equation of the Company’s capital structure. With all these changes, Net Serviços is more prepared to overcome the macroeconomic difficulties and to recover its growth path in the appropriate moment. UPCOMING EVENTS 1. Conference call – 4Q02 Financial Results The Company will send an invitation informing date and time of the event. 2. Reporting Dates of Upcoming Results 1Q03 -> Date: 3rd week of May, 2003 2Q03 -> Date: 3rd week of August, 2003 3Q03 -> Date: 3rd week of November, 2003 This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of NET. These are merely projections and, as such, are based exclusively on the expectations of NET's management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in NET’s filed disclosure documents and are, therefore, subject to change without prior notice.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

NET SERVIÇOS DE COMUNICAÇÃO S.A.

By:	/S/ Leonardo Porciúncula Gomes Pereira
	Leonardo Porciúncula Gomes Pereira Chief Financial Officer