TIM PARTICIPACOES S.A. Announces Its Consolidated Results for the First Quarter 2010

RIO DE JANEIRO, BRAZIL--(Marketwire - May 4, 2010) - TIM Participações S.A. (BOVESPA: TCSL3) (BOVESPA: TCSL4) (NYSE: TSU), the company which controls directly TIM Celular S.A. and Intelig Telecomunicações Ltda., announces its results for the first quarter of 2010. TIM Participações S.A. ("TIM Participações" or "TIM") provides telecommunication services with a nationwide presence.

1Q10 Highlights

• Positive signs of our marketing approach: (i) Infinity base surpassing 23 million lines, now representing 2/3 of total pre-paid base; (ii) 70% of post-paid gross adds coming from our offers 'Infinity' and 'Liberty,' (iii) high adherence of 'Chip avulso' (>60% of post-paid consumer gross adds);
• Subscriber base grew 17.3% YoY, reaching 42.4 million lines in March. Gross Adds of 5.5 Mln shows the best Q1 series (+42.4% YoY);
• Post-paid base reached 6.6 million users (+6.9% YoY) inverting the trend of 4Q09 (-1.8% YoY). Upward trend in post-paid mix of net adds, from 2.4% in 2Q09 to 20.8% in March. Gross in post-paid grew 46.7% YoY;
• Strong MOU at 100 minutes (+42.4% YoY). New offers stimulating on-net usage (local and LD) thus maintaining interconnection under control;
• Network Service Quality at 100% of Anatel's requirements in Mar'10, preserving quality despite strong usage increase;
• Net service revenues reached R$3,146 million, a growth of +5.4% YoY (or +5.3% TIM stand alone). Considering IFRS figures (stated by controlling shareholder), TIM stand alone growth would be +6.2% YoY. Double-digit growth in voice outgoing revenues (+12.3% YoY);
• SAC on a market comparable basis drop to R$78 (-24.6% YoY) - following new market approach (Chip-only and rationale commissioning) supporting SAC/ARPU ratio to reduce at 3.3x;
• OPEX decreased 3.7% YoY - maintaining the efficiency plan to finance the intense commercial activity. Breakdown: COGS (-16%), Bad Debt (-33%), G&A and Personnel (-8%), Network and Interconnection (-4%) and Commercial (+10%);
• EBITDA at sound increase of 30.9% YoY to R$810 million. EBITDA margin reached 24.8% (25.8% TIM only), a strong improvement from 19.5% in 1Q09 (20.1% TIM only). Considering IFRS figures (stated by controlling shareholder), TIM stand alone margin would be ~29% in 1Q10;
• Net Profit of R$30.0 million in 1Q10 vs a loss of R$165.2 million in 1Q09;
• CAPEX totaled R$575.8 million (3x vs 1Q09) - to speed up Intelig integration and 3G roll-out and to improve 2G capacity.

1Q10 Conference Call

Conference Call in Portuguese:
May 4^th, 2010, at:
09:00 AM Brasília time
08:00 AM US ET

Conference Call in English:
May 4^th, 2010, at:
11:00 AM Brasília time
10:00 AM US ET

For further information, please access the Company's website:
www.tim.com.br/ir

Contact Information:

Rogério Tostes
TIM Participações S.A.
Investor Relations
Phone: +55 (21) 4009-3742 / (21) 8113-0255
Email: rtostes@timbrasil.com.br
Website: www.tim.com.br/ir