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GRI 2.1; 2.4; 3.1; 3.2; 3.3; 3.4; 3.5; 3.6; 3.7; 3.8; 3.10; 3.11

Algar Telecom has adopted the international Global Reporting Initiative (GRI) guidelines (version G3 - Level C) in its annual sustainability report for the sixth year in a row. Nevertheless, the information previously provided has not been revised in any way or changed in a significant manner as far as the scope, limits or measurement methods are concerned, mainly in comparison to the 2010 report. Based on these guidelines, the Company describes to its different stakeholders its achievements and challenges in the previous year, as well as its prospects, which are based on a vision of the future shared by all the Grupo Algar (Algar Group) companies.

This information covers the period between January 1st and December 31st, 2011 and the performance of Algar Telecom and six subsidiaries: CTBC Celular, CTBC Multimídia Data Net, Image, Algar Tecnologia, Engeset and Algar Mídia. Audited by KPMG Auditores Independentes, the financial data were determined according to the criteria established by international accounting standards – International Financial Accounting Standards (IFRS). The social and environmental performance indicator were compiled and validated internally only. The GRI indicators are provided individually throughout the text and put together in an index.

Provided in electronic format only, this document shows in an objective and transparent manner that our innovative spirit and commitment to all three pillars of sustainability – economic, social and environmental – translate into positive results for all our stakeholders: clients, directors, shareholders, regulatory bodies, the Government, suppliers, creditors, associates and the community. To that end, the indicator and topics were selected based on their relevance for Algar Telecom’s field of business.

Further information or explanations about this report can be obtained from the communication channels below.

Cia. de Telecomunicações do Brasil Central
Algar Telecom
Investor Relations (IR)
+55 (34) 3256-2978
ri@algartelecom.com.br
Website: www.algartelecom.com.br/ri
Address: Rua José Alves Garcia, 415
Uberlândia, Minas Gerais – Brazil
Postal Code: 38400-668

Communications and Brand Advisory Services
+55 (34) 3256-2071
institucional@algartelecom.com.br