Local currency			Effective Interest rate p.a.
	Currency	Nominal Interest rate p.a.	12/31/2009	12/31/2008	12/31/2009	12/31/2008	01/01/2008
Finame	R$	TJLP + 3.15%	9.15%	9.15%	217,438	178,738	98,877
Bank credit notes – Itaú BBA	R$	CDI + 2.55%	11.39%	13.62%	172,704	173,370	172,642
					390,142	352,108	271,519
Foreign currency
Perpetual Bond	US$	9.25%	10.57%	10.57%	263,711	351,254	262,583
Global notes 2020	US$	7.50%	8.57%	-	611,450	-	-
Banco Inbursa S.A.	US$	7.88%	9.22%	9.22%	351,104	472,825	-
					1,226,265	824,079	262,583
			Debentures
			12/31/2009	12/31/2008
Non-convertible debentures			58,000	58,000	582,397	583,629	581,468
Total debt					2,198,804	1,759,816	1,115,570
Current					85,475	58,331	21,158
Non-current					2,113,329	1,701,485	1,094,412

a)

Loans payable Finame From 2007, for the purpose of acquiring digital signal equipment, the Company has received financing using funds from Finame – Government Agency for Machinery and Equipment Financing. In the year ended December 31, 2009, the funds raised in this manner amounted to R$83,584 (R$93,503 in 2008). These contracts are subject to interest at 100% of the long-term interest rate (TJLP) rate plus an average spread of 3.15% p.a., a five year term, and are collateralized by the assets financed. Bank credit notes In connection with the acquisition of Vivax, the Company assumed bank debt in the amount of R$220,000. On July 6, 2007, this loan agreement was renegotiated and amended as to the interest rates, guarantees and financial covenants. The facility is now subject to interest at the interbank rate (CDI) plus a spread of 1.2% a year. In 2007, the Company prepaid R$50,000 of this debt and committed to pay the remainder of the principal in 2011. On August 31, 2009, the loan was altered and repayments of principal rescheduled from 2011 to 2014, 2015 and 2016. Additionally, finance charges on this loan were altered from “CDI plus a spread of 1.2%” to 2.55% per year as of August 31, 2009 with no retroactive effect. In the year ended December 31, 2009, the Company paid interest charges on this loan in the amount of R$19,976 (R$21,862 on December 31, 2008). Guaranteed Notes 2020 On November 4, 2009, the Company issued Guaranteed Notes of US$350 million, corresponding to R$593,425, with maturity on January 27, 2020 and a nominal interest rate of 7.5% p.a. payable semiannually on January 27 and July 27 beginning in 2010. The securities can be redeemed in full or in part any time prior to January 27, 2015. Perpetual Notes On November 28, 2006, the Company issued Guaranteed Perpetual Notes (9.25%) in the amount of US$150 million corresponding to R$326,966 with indefinite maturity and an annual interest rate of 9.25% paid quarterly. The Notes are guaranteed by all the Company’s subsidiaries. Since November 27, 2009, the Company has the option to redeem, in whole but not in part, on the date of any interest payment, 100% of the principal amount thereof, plus accrued and unpaid interest and any additional amounts payable. In the year ended December 31, 2009, the Company paid interest of R$27,200 (R$25,182 on December 31, 2008) on the Perpetual Notes. Banco Inbursa S.A. On June 19, 2008 the Company, executed a borrowing arrangement with Banco Inbursa S.A., a Mexican bank which is affiliated with the conglomerate Grupo Carso. Grupo Carso also includes Mexico’s national telephone company Telmex Group, which is an indirect shareholder of the Company. The borrowing is in the amount of US$200,000 (R$319,520), which is repayable in three annual installments on June 18, 2017, 2018 and 2019, payable semi annually, on October 15 and April 15 of each year. The Company may, at its option, prepay the borrowing in whole or in part at any time prior to the fifth anniversary of the Closing Date. The loan is guaranteed by the Company and its subsidiaries and the proceeds were principally used to finance the BigTv Companies acquisition and general development of the Company.

b)

Debentures On December 1st, 2006, the Company completed its 6th debenture issuance by offering 58,000 simple debentures, of the nominal book entry, single series, par value, non-secured and subordinated type in the amount of R$580,000. On September 23, 2009, as decided during the Company Debenture Holders’ Meeting, the term of debentures was amended and repayments were rescheduled from December 1st, 2013 to June 1st, 2015, with annual amortization beginning on June 1st, 2012. The following decisions were also approved at the Meeting: (i) beginning October 1st, 2009, debenture remuneration will correspond to 100% of the accumulated daily CDI variance plus a spread of 1.6% per year as compared to remuneration of 0.7% per year valid until September 30, 2009 and (ii) a payment of R$1,760 as a bonus for renewing debentures will be paid on October 1st, 2009. The remaining items related to the 6th issue remain unchanged. Company Commitments (Covenants) The Company is committed to complying with a number of restrictive covenants related to the outstanding borrowings, the most important of which are: •  •  Maintenance of the ratio obtained from dividing Net Consolidated Debt by EBITDA, as specified in the debt contract, at less than 2.5; and Maintenance of the ratio obtained from dividing EBITDA, as specified in the debt contract, by expenses net of consolidated interest, at 1.5 or above. As of December 31, 2009, the Company is in compliance with all covenants.