RELEVANT FACT

The management of Vivo Participações S.A. hereby announces that the Corporate Restructuring described in the Relevant Fact dated as of May 2nd, 2006 was duly approved in the extraordinary general shareholders meetings held on October 31, 2006, as per the minutes to be published as of November 1st, 2006. Accordingly, Telergipe Celular S.A., Telebahia Celular S.A., Telerj Celular S.A., Telest Celular S.A., Celular CRT S.A., Telesp Celular S.A., Tele Centro Oeste Celular Participações S.A., Telegoiás Celular S.A., Telemat Celular S.A., Telems Celular S.A., Teleron Celular S.A., Teleacre Celular S.A. and Norte Brasil Telecom S.A. (jointly referred to herein as the “Operating Companies”) were merged into Vivo S.A. (new corporate name of Global Telecom S.A.) and, as a consequence, such Operating Companies were extinguished. In view of the proposal presented by the management of Vivo S.A., the General Shareholders Meeting resolved not to merge the company TCO-IP S.A., which shall continue to exist, considering that it does not provide SMP services (Personal Mobile Services).

For those former shareholders of the companies TCO, Telegoiás, Telemat, Telems, Teleacre and Teleron who held shares of such companies prior to the merger of the companies’ shares and prior to the corporate restructuring described in the Relevant Fact announced on December 4, 2005 who were entitled to dividends/interests on shareholders’ equity and to fractions of shares arising from the reverse split of shares as previously approved, in case such compensations result from the fiscal years of 2003, 2004 and 2005 and have not been requested by the shareholders or become time-barred, it was resolved that as of November 1st, 2006, the ownership of the accounts kept by such shareholders shall be transferred to Vivo S.A., keeping the former account numbers and branch in order to identify the payments owned by each of the merged companies, up to the time barring of such payments.

As previously clarified in the Relevant Fact published on May 2nd, 2006, the SMP and SCM services that were provided by the Operating Companies in all the areas and regions shall be provided by the Surviving Entity with the full continuity of the rendering of services to the clients and users of the Operating Companies, which shall not be required to take any measures to such extent.

As the Corporate Restructuring did not directly involve Vivo Participações S.A. thereby affecting only the companies controlled by it, the capital stock and the shareholders’ equity of Vivo Participações S.A., as well as its shareholding structure and the current rights granted by the shares issued by Vivo Participações S.A. shall not be changed at all.

At last, considering that the Corporate Restructuring involved companies that were controlled solely by Vivo Participações S.A., the right to withdraw is not applied thereto.

Further clarification may be obtained at Vivo’s Investor Relations Office at +55 (11) 5105-2276, with Mr. Charles Edwards Allen.

São Paulo, October 31, 2006

VIVO PARTICIPAÇÕES S.A.
Ernesto Gardelliano
Director of Investor Relations