The following accounts were adjusted (in millions of reais):

30/06/2005 Audited

Accounts Adjustments 30/06/2005

Assets

Trade accounts

receivable, net 1,507,983 (69,902) 1,438,081

Deferred taxes and

recoverable taxes 335,110 10,688 345,798

Liabilities

Accounts payable 1,069,793 (71,513) 998,280

Taxes and

contributions 566,930 (159,550) 407,380

Provision for

contingencies 494,789 171,849 666,638

Shareholders’ equity 6,486,539 0 6,486,538

Income statement

Interconnection

and facilities (893,935) 71,513 (822,422)

Allowance for doubtful

accounts (77,061) (36,345) (113,406)

Other operating

income(expense) 32,297 (52,693) (20,396)

EBITDA 421,956 (17,525) 404,431

Financial income

(expense) 36,863 17,525 54,388

Net income 93,556 0 93,556