The Company’s good performance last year shows the assertiveness of Algar Telecom’s strategic plan, and the good prospects for the telecommunications market indicate the path to be followed in 2012. The Company is prepared to grow and seize the new opportunities in the retail business and in the corporate segment.

In Telecom, the Company is planning to forge ahead with Expansão Minas. To that end, it is going to monitor and assess the results of the first phase throughout 2012. They are going to serve as a basis for the proposal that the Board of Directors approve a gradual expansion of our presence to other areas covered by the license. In order to increase its client base in retail and grow inside its current base, the Company is also planning to extend the Ultra Broadband Network and the HDTV resolution pay TV services – both launched in late 2011 – to other locations. In the corporate segment, in which the Company is growing considerably, the expansion is going to continue in the areas in which the Company is already present by attracting new clients with top-quality solutions and unique service.

In business process and technology outsourcing services, the strategy is to continue investing in infrastructure and offering new customized solutions. The segment, whose share in the Company’s consolidated results has been increasing over the last few years, is expected to record even better results after the approval of Plano Brasil Maior (Greater Brazil Plan), which includes decreasing payroll taxes for software and IT companies for the next three years.

In Complementary Businesses, the prospects are also very positive. Although it has an expanding addressable market, Engeset is going to continue playing a strategic role in developing the Company’s Telecom segment. In turn, Algar Mídia is focusing on the new opportunities in the out-of-home digital media market.

Year after year, the Company reaffirms its commitment to making progress in terms of corporate governance, innovation and sustainability. Its plans for 2012 also include continuing to improve risk controls, a process that started in 2010. In the environmental arena, one of the innovations is going to be the use of solar and wind energy in mobile phone towers in Patrocínio, State of Minas Gerais. It is a pilot project developed jointly with Ericsson. After Kenya and India, Brazil is going to be the third country to have a Radio Base Station (RBS) powered by renewable energy. Sunlight and wind are going to be its primary sources of electricity, and the public power supply is going to serve as a back-up source only. If the new technology proves efficient, it is going to be tested in other Algar Telecom towers, thus stepping up the Company’s initiatives to decrease energy consumption and GGEs. The innovation effort also includes partnerships with institutions like CNPq, Fapemig and FAPESP. In general lines, Algar Telecom’s plans for 2012 show a confidence in Brazil’s economy and strengthen its commitment to the future.