Contax Holding 6-K/A Minutes of the Extraordinary Shareholders Meeting

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K/A

REPORT OF FOREIGN ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16 OF THESECURITIES
EXCHANGE ACT OF 1934

For the month of July, 2011

Commission

File Number 000-5149

CONTAX PARTICIPAÇÕES S.A.

(Exact name of Registrant as specified in its Charter)

Contax Holding Company

(Translation of Registrant's name in English)

Rua do Passeio, 56 – 16th floor
Rio de Janeiro, RJ
Federative Republic of Brazil

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-Fþ   Form 40-Fo

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yeso    Noþ

 

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CONTAX PARTICIPAÇÕES S.A.

National Corporate Taxpayers Register (CNPJ/MF) No. 04.032.433/0001-80

State Enrollment (NIRE) No. 33.300.275410

Publicly-Traded Company

MINUTES OF THEEXTRAORDINARY SHAREHOLDERS MEETING

HELDON JULY 1, 2011

Drafted in summary form, as provided in Article 130 et seq.

of Law No. 6404/76.

1.Time, Date and Place: Held at 10:00 am on July 1, 2011, at the headquarters of Contax Participações S.A. ("Company" or "Contax Participações"), located at Rua do Passeio Nos. 48 to 56, part, Rio de Janeiro, state of Rio de Janeiro.

2.Call: Call Notice published in the "Official Gazette of the State of Rio de Janeiro", Part V, in the editions of the days of: June 16, 2011, June 17, 2011 and June 20, 2011, pages 7, 23 and 14, and in the newspaper "Valor Econômico - National Edition" in the editions of June 16, 2011, June 17, 2011, June 18, 2011, June 19, 2011 and June 20, 2011, pages A10, C11 and C7.

3. Agenda:(i) Examine, discuss and decide on the Share Merger Protocol and Justification of Mobitel S.A. Shares (“Mobitel”) by the Company and the other documents in respect to such share merger, whereby Mobitel will become a wholly owned subsidiary of the Company;(ii) Ratification of appointments and contracting of specialized companies responsible for preparation of (i) valuation report of the asset value of Mobitel's shares; and (ii) economic valuation report of the shares of the Company's and Mobitel's shares;(iii) Approval of the respective valuation reports;(iv) Resolution the merger of Mobitel's shares by the Company, with consequent increase of the Company's capital through issuance of new common and preferred shares;(v)Approval of the amendment to the Company's By-Laws due to the capital increase; and(vi) Substitution of the members of the Board of Directors for completion of the mandate.

4. Attendance:shareholders representing more than 82.20% of the capital entitled to vote, pursuant to the signatures contained in the Shareholders' Attendance Registration Book. Also present Marco Norci Schroeder (Director of Finance and Investor Relations) and Eder Carvalho Magalhães (representative of the Audit Committee).

5. Presiding Members:Chairman: Mr.Marco Norci Schroeder, Secretary: Ms.Cristina Alves Corrêa Justo Reis. 

Special Shareholders Meeting of Contax Participacoes SA of July 1, 2011

 

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6. Resolutions: By shareholders representing more than 82.20% of the voting capital of the Company present at the Shareholders Meeting the following resolutions were decided:

6.1.Approval with no dissenting vote and the abstention of shareholders CSHG Verde Equity Master Fundo de Investimentos em Ações; CSHG Verde Master Fundo de Investimentos Multimercado; Green HG Fund LLC e HSBC Global Investment Funds - Brazil Equity, representing 8.61% of the shares entitled to vote, after review and discussion, the Share Merger Protocol and Justification, which establishes the terms and conditions of the merger of Mobitel's shares, a corporation, headquartered in city of São Paulo, state of São Paulo, at Rua Desembargador Eliseu Guilherme, Nos. 282/292, Paraiso, CEP 04004-030, enrolled with the National Corporate Taxpayers Register (CNPJ/MF) under No. 67.313.221/0001-90, by Contax Participações ("Share Merger") whereby Mobitel shall become a wholly owned subsidiary of the Company ("Share Merger Protocol and Justification") and all its exhibits, which shall be an integral part of these minutes asExhibit I. The Protocol and Justification of the Share Merger establishes all the terms and conditions of the Share Merger.

6.2.      Without a dissenting vote and the abstention of the shareholders CSHG Verde Equity Master Fundo de Investimentos em Ações; CSHG Verde Master Fundo de Investimentos Multimercado; Green HG Fund LLC and HSBC Global Investment Funds - Brazil Equity, representing 8.61% of the shares entitled to vote: (i) ratify the appointment of APSIS Consultoria e Avaliações Ltda., enrolled with the National Corporate Taxpayers Register (CNPJ/MF) under No. 08.681.365/0001-30, and Regional Accounting Council of Rio de Janeiro (CRC/RJ) under number 005112/0-9, with headquarters at Rua da Assembléia No. 35, 12th floor, Centro District, city of Rio de Janeiro, state of Rio de Janeiro, previously made by the management of the Company and Mobitel, to appraise the net book value of Mobitel, based on its audited financial statements reported onDecember 31, 2010,pursuant to the Share Merger Protocol and Justification and preparation of the respective valuation report ("Valuation Report of Mobitel’s Net Book Value"), and (ii) ratify the appointment of Banco BTG Pactual S.A., enrolled with the National Corporate Taxpayers Register (CNPJ/MF) under No. 30.306.294/0001-45, headquartered at Av. Brigadeiro Faria Lima No. 3.729, 9th floor, in the city of São Paulo, state of São Paulo, previously made by the management of the Company and Mobitel, for valuation of both companies by the methodology of future profitability based on retrospective analysis, projection of scenarios and cash flows discounted on December 31, 2010, under the Share Merger Protocol and Justification, and preparation of the Exchange Ratio Valuation Report (the "Exchange Ratio Valuation Report") on December 31, 2010, under the Share Merger Justification and Protocol.

6.3.      Approve with no dissenting vote and the abstention of shareholders CSHG Verde Equity Master Fundo de Investimentos em Ações; CSHG Verde Master Fundo de Investimentos Multimercado; Green HG Fund LLC and HSBC Global Investment Funds - Brazil Equity, representing 8.61% of the shares entitled to vote, after review and discussion of the Valuation Report of Mobitel’s Net Book Value, which shall be incorporated to these minutes asExhibit II, with the net assets of Mobitel, for purposes of merger of shares issued by it into the Company's assets, valued on the base date of December 31, 2010 in the amount of one hundred and seventy-eight million, two hundred and fifteen thousand, nine hundred and fifty-nineReais and sixty-eight cents (R$178,215,959.68), and approve, without reservation, after review and discussion, the Exchange Ratio Valuation Report, which shall be incorporated to these minutes as itsExhibit III.  

Special Shareholders Meeting of Contax Participacoes SA of July 1, 2011

 

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6.4.      Approve with no dissenting vote and the abstention of shareholders CSHG Verde Equity Master Fundo de Investimentos em Ações; CSHG Verde Master Fundo de Investimentos Multimercado; Green HG Fund LLC and HSBC Global Investment Funds - Brazil Equity, representing 8.61% of the shares entitled to vote, the Share Merger, in accordance with the Share Merger Protocol and Justification, with the consequent transformation of Mobitel into a wholly owned subsidiary of the Company and authorize the Company's managers to perform all acts necessary for the implementation and finalization of the Share Merger, pursuant to the Share Merger Protocol and Justification.

6.4.1.   According to the exchange ratio approved pursuant to the Exchange Ratio Valuation Report approved above, each Mobitel shareholder shall receive zero point zero three six two (0.0362) common shares multiplied by the percentage of common shares in which Contax Participações' capital is divided and zero point zero three six three (0.0363) preferred shares multiplied by the percentage of preferred shares in which Contax Participações' capital is divided, issued by the Company for each Mobitel common share held by it, resulting in the total issue by the Company of one million, eight hundred and seventy-six thousand, nine hundred and eighty-two (1,876,982) common shares and three million, thirty-eight thousand, four hundred ninety-nine (3,038,499) preferred shares, all book-entry and with no par value, to be distributed to shareholders of Mobitel, according to their respective holdings in the capital of Mobitel.

6.4.2.   In compliance with the provisions of Article 252, paragraph 1 of the Corporations Law, the shareholders of the Company that maintain uninterrupted ownership of the shares since January 25, 2011, inclusive, of the date of publication of the Material Fact which gave notice of the Share Merger to the market, up until the date of the effective exercise of the appraisal rights and dissent in the resolution on the Share Merger may exercise their appraisal to such shares, withdrawing from the Company, through reimbursement of the value of their shares, as provided in the Share Merger Protocol and Justification.

Special Shareholders Meeting of Contax Participacoes SA of July 1, 2011

 

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6.5.      Approve without dissenting vote and with abstention of the shareholders CSHG Verde Equity Master Fundo de Investimentos em Ações; CSHG Verde Master Fundo de Investimentos Multimercado; Green HG Fund LLC and HSBC Global Investment Funds - Brazil Equity, representing 8.61% of the shares entitled to vote, the capital increase of the Company, resulting from the Share Merger in the amount of one hundred and seventy-eight million, two hundred and fifteen thousand, nine hundred and fifty-nineReais and sixty-eight cents (R$178.215.959,68), with the amount of thirty-four million, four hundred and fifty-five thousand, eight hundred and fortyReais and fifty-six cents (R$34.455.840,56) allocated to the share capital, which shall henceforth go from two hundred and twenty-three million, eight hundred and seventy-three thousand, and one hundred and sixteenReais and ten cents (R$223,873,116.10) to two hundred and fifty-eight million, three hundred and twenty-eight thousand, nine hundred and fifty-sixReais and sixty-six cents (R$258,328,956.66),pursuant to theValuation Report of Mobitel's Net Book Value contained inExhibit II to these minutes, with the balance in the amount of one hundred and forty-three million, seven hundred and sixty thousand and one hundred and nineteenReais and twelve cents (R$143,760,119.12) to the capital reserve. The capital increase shall result in the issuance of one million, eight hundred and seventy-six thousand, nine hundred and eighty-two (1,876.982) new common shares and three million, thirty-eight thousand, four hundred and ninety-nine (3,038,499) preferred shares, all book-entry and with no par value to be fully assigned to Mobitel's shareholders, pursuant to their respective holdings in Mobitel's capital.

            6.5.1.Due to the capital increase described in the above item, the Company's capital shall then be represented by sixty-four million, six hundred and eighty-six thousand and eighty-one shares (64,686,081) , with twenty-four million, nine hundred and sixty-six thousand, five hundred and eighty-two (24,966,582) common shares and thirty-nine million, seven hundred and nineteen thousand, four hundred and ninety-nine (39,719,499) preferred shares, all book-entry and with no par value, and the main provision of Article 5 of the By-laws of the Company shall henceforth read as follows:

            "Article 5 -The capital is two hundred and fifty-eight million, three hundred and twenty-eight thousand, nine hundred and fifty-sixReais and sixty-six cents (R$258,328,956.66), divided into 64,686,081 shares, being 24,966,582 common shares and 39,719,499 preferred shares, all book-entry, registered and with no par value."

6.5.2.The shares to be issued by the Company by reason of the Share Merger shall be entitled to all rights that are then ensured to the Company's existing shares, including profit sharing still not declared and paid by the Company to its shareholders.

6.6       Without a dissenting vote and with the abstention of the shareholder HSBC Global Investment Funds-Brazil Equity, representing 1.31% of the shares entitled to vote, appoints to join the Board of Directors of the Company, to complete the mandate until the Annual Shareholders Meeting to be held in 2012:(i) as full member, Mr. RICARDO ANTÔNIO MELLO CASTANHEIRA, Brazilian citizen, married, civil engineer, bearer of identity card No. MG-1.190.558, issued by SSP-MG and enrolled with the National Individual Taxpayers Register (CPF/MF) under No. 130.218.186-68, resident in the city of Belo Horizonte, state of Minas Gerais, at Avenida do Contorno, No. 8123, Cidade Jardim, Postal Code (CEP): 30110-937, replacing Mr. Paulo Roberto Reckziegel Guedes, who requested removal, and (ii) Mr.CARLOS FERNANDO HORTA BRETAS, Brazilian citizen, married, civil engineer, bearer of identity card No. 40.277/D issued by Engineering and Architecture Council of Minas Gerais (CREA MG) and enrolled with the National Individual Taxpayers Register (CPF/MF) under No. 463.006.866-04, resident in the city of Belo Horizonte, state of Minas Gerais, at Avenida do Contorno No. 8123, Cidade Jardim, Postal Code (CEP): 30110-937, in the office ofalternate member of director Renato Torres de Faria. The newly-elected directors declared that they are involved in any crimes that may deprive them of office and provided the declaration under paragraph 4 of article 147 of Law No. 6404/76.

Special Shareholders Meeting of Contax Participacoes SA of July 1, 2011

 

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7.Adjournment : As there is nothing future, the preparation of these minutes was authorized in summary form, which after having been read and approved, were signed by the shareholders present, who authorized publication thereof without the respective signature, in accordance with article 130, paragraph 2, of Law No. 6404/76. Marco Norci Schroeder (Chairman); Eder Carvalho Magalhães (Audit Committee Representative); Shareholders Present: CTX Participações S.A (by poa Ana Carolina dos Remédios Monteiro da Motta); Eton Park Fund, L.P; EP Tisdale LLC; Capital World Growth and Income Fund Inc; Ford Motor Company Defined Benefit Master Trust; Skopos Cardeal Fundo de Investimento em Ações; Skopos Master Fundo de Investimento em Ações; HSBC Global Investment Funds -Brazil Equity; Green Hg Fund LLC; CSHG Verde Equity Master Fundo de Investimentos em Ações; CSHG Verde Master Fundo de Investimentos Multimercado (by poa Leonardo Zucolotto Galdioli). I certify that this is a true copy of the respective Minutes book of the Company.

Rio de Janeiro, July 1, 2011

SECRETARY

Cristina Alves Corrêa Justo Reis

Special Shareholders Meeting of Contax Participacoes SA of July 1, 2011

 

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CONTAX PARTICIPAÇÕES S.A.

National Corporate Taxpayers Register (CNPJ/MF) No. 04.032.433/0001-80

State Enrollment (NIRE) No. 33.300.275410

Publicly-Traded Company

MINUTES OF THESPECIAL SHAREHOLDERS MEETING

HELDON JULY 1, 2011

Exhibit I

Protocol and Justification of Share Merger

Exhibit II

Value Report of Mobitel's Net Book Value

Exhibit III

Exchange Ratio Valuation Report

Special Shareholders Meeting of Contax Participacoes SA of July 1, 2011

Draft for Discussion
June 3, 2011

INSTRUMENT OF JUSTIFICATION AND PROTOCOL OF MERGER OF SHARES

By this private instrument, the managers of the companies mentioned below enter intothis Instrument of Justification and Protocol of Merger of Shares (“Instrument”)according to articles 224, 225, and 252 of Law No. 6404 of December 15, 1976, asamended (“Law No. 6404/76”) and Brazilian Securities Commission (“CVM”) Ruling 319 of December 3, 1999, as amended (“ICVM 319”).

(a) MOBITEL S.A.a corporation, with its principal place of business in the City of São Paulo, State of São Paulo, at Rua Desembargador Eliseu Guilherme, Nos. 282/292, Paraíso District, Postal Code 04004-030, enrolled with the National Corporate Taxpayers Register under CNPJ No. 67.313.221/0001-90, hereinafter referred to as

“Mobitel”, “Dedic” or “Merging Company”; and

(b) CONTAX PARTICIPAÇÕES S.A., a publicly-held corporation, with its principal place of business in the City of Rio de Janeiro, State of Rio de Janeiro, at Rua do Passeio, No. 56, 16^thfloor, enrolled with the National Corporate Taxpayers Register of the Ministry of Finance under CNPJ/MF No. 04.032.433/0001-80, hereinafterreferred to simply as “Contax Participações” or “Surviving Company”;

Mobitel and Contax Participações, represented by their managers, are hereinafterreferred to individually as “Party” and jointly as “Parties”;

WHEREAS, the Parties wish that all the shares issued by Mobitel be merged into

Contax Participações (“Merger of Shares”);

WHEREAS, pursuant to the recommendation from the Securities Commissionexpressed in Guideline No. 35 of September 1, 2008 (“CVM Guideline 35”), a special shareholders’ meeting of Contax Participações was held on March 30, 2011 in order topass resolutions on its By-laws for the purpose of approving the creation of a special and independent committee according toCVM Guideline 35 (“Special Committee”);

WHEREAS, on April 26, 2011, there was a Meeting of the Board of Directors of Contax Participações to pass resolutions on the election of members of the Special Committee, all managers of Contax Participações or not, with vast experience and technical capacity in accordance with the same parameters set forth in the BM&FBOVESPA New Market Regulations for the qualification of a new member of the Board of Directors of a publicly-held corporation as an “independent member”;

WHEREAS, on June 8, 2011, the Special Committee of Contax Participações submitted to the managers of Contax Participações and of Mobitel its thoughts on the conditionsof the proposal for the Merger of Shares, including the replacement of shares issued by Mobitel with shares issued by Contax Participações;

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Draft for Discussion
June 3, 2011

NOW, THEREFORE, the Parties resolve to enter into this Instrument of Justificationand Protocol of Merger of Shares (“Instrument”), which shall be submitted for approval and ratification of the shareholders of Contax Participações and of Mobitel gathered in ashareholders’ meeting, pursuant to the following terms and conditions.

1.INTRODUCTION

1.1. Subject Matter. The subject matter of this Instrument is to consolidate the justifications, terms, and conditions of the transaction of merger of shares to beproposed to shareholders’ meetings of the Parties, whereby all the shares issued by Mobitel shall be merged into Contax Participações (“Merger of Shares”) and Mobitel shall become a wholly-owned subsidiary of Contax Participações. The purpose of the Merger of Shares covered by this Instrument is to integrate all the activities andshareholding structures of Contax Participações and of Mobitel (“Corporate Restructuring”), in accordance withthe Notice of Material Event of Contax

Participações disclosed on January 25, 2011 (“Notice of Material Event”).

     1.1.1. The Corporate Restructuring is limited to the Merger of Shares with the issuance by Contax Participações of common and preferred shares according to the replacement ratio mentioned in item 4.3 of this Instrument, to be attributed to the shareholder that, on the date of the corresponding release, holds shares issued by Mobitel.

1.2.Corporate Structure Before Corporate Restructuring. Currently, the corporate restructuring of the Parties is the following:

Mobitel

Shareholder	No. of Shares	% of the Total and
		Voting Capital
Portugal Telecom Brasil S.A.	135,519,119	87.5%
Fábio Carlos Pereira	19,359,874	12.5%
Total	154,878,993	100%

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Draft for Discussion
June 3, 2011

Contax Participações

Shareholder	No. of Registered Common Shares	% of Registered Common Shares	No. of Registered Preferred Shares	% of Registered Preferred Shares	Total Registered Common and Registered Preferred Shares	% of Total Capital
CTX Participações S.A.	15,992,959	69.26%	3,880,666	10.58%	19,873,625	33.25%
Credit Suisse Hedging Griffo CV S.A.	1,684,000	7.29%	8,803,600	24.00%	10,487,600	17.55%
Skopos Administradora de Recursos Ltda.	679,400	2.94%	6,869,600	18.73%	7,549,000	12.63%
HSBC Bank Brasil S.A.	303,200	1.31%	4,467,000	12.18%	4,770,200	7.98%
Eton Park Capital Management, L.P.	1,314,200	5.69%	-	-	1,314,200	2.20%
Others	3,115,841	13.49%	12,660,134	34.51%	15,775,975	26.39%
TOTAL	23,089,600	100.00%	36,681,000	100.00%	59,770,600	100.00%

1.3.Corporate Structure After Corporate Restructuring.After the events described in Section 1.1 above, the corporate structure of the Parties shall be the following, takinginto account Fábio’s exercise of withdrawal right pursuant to item 2.6below and the consequent cancellation of his Mobitel shares:

Mobitel

Shareholder	No. of Shares	% of the Total and
		Voting Capital
Contax Participações	135.519.119	100%
TOTAL	135.519.119	100%

Contax Participações

Shareholder	No. of Registered Common Shares	% of Registered Common Shares	No. of Registered Preferred Shares	% of Registered Preferred Shares	Total Registered Common and Registered Preferred Shares	% of the Total Capital
CTX Participações S.A.	15.992.959	64,06%	3.880.666	9,77%	19.873.625	30,72%
Credit Suisse Hedging Griffo CV S.A.	1.684.000	6,75%	8.803.600	22,16%	10.487.600	16,21%

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Draft for Discussion

June 3, 2011

Shareholder	No. of Registered Common Shares	% of Registered Common Shares	No. of Registered Preferred Shares	% of Registered Preferred Shares	Total Registered Common and Registered Preferred Shares	% of the Total Capital
Skopos Administradora de Recursos Ltda.	679.400	2,72%	6.869.600	17,30%	7.549.000	11,67%
Portugal Telecom Brasil S.A.	1.876.982	7,52%	3.038.499	7,65%	4.915.481	7,60%
HSBC Bank Brasil S.A.	303.200	1,21%	4.467.000	11,25%	4.770.200	7,37%
Eton Park Capital Management, L.P.	1.314.200	5,26%	-	-	1.314.200	2,03%
Others	3.115.841	12,48%	12.660.134	31,87%	15.775.975	24,39%
TOTAL	24.966.582	100,00%	39.719.499	100,00%	64.686.081	100,00%

2.JUSTIFICATION FORCORPORATERESTRUCTURING

2.1.Justifications for Corporate Restructuring. Bearing in mind that Mobitel and Contax Participações are companies whose business purpose includes activities of the same line of business, that is, contact center, with their activities being complementary, especially regarding their customer base and offered services, the Corporate Restructuring is justified by potential efficiency gains.

2.2. The Corporate Restructuring will combine the experiences of two players, thereby enabling the improvement of contact center activities and the offer of better services to their users. It will also strengthen the performance of both companies on their main markets and will integrate the complementary activities of each company.

2.3. The Corporate Restructuring will also reduce costs and bring administrative, economic, and financial benefits with the reduction of combined operating expenses inasmuch as both Contax Participações and Mobitel will begin to belong to the same economic group.

2.4. Finally, the Corporate Restructuring will enable the creation of worth through the exchange of administrative best practices, thereby resulting in significant improvements in productivity and profitability for Mobitel and for Contax Participações.

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Draft for Discussion
June 3, 2011

3.SPECIALIZEDCOMPANIES

3.1Specialized Companies.For the preparation of valuations of the Parties for

Corporate Restructuring purposes, the following specialized companies (“Specialized Companies”)have been chosenad referendumby shareholders’ meetings of the Parties,and such companies hereby represent that there are no current or potential conflicts of or common interests with direct or indirect controlling shareholders of Contax Participações and with direct or indirect controlling shareholders of Mobitel, or with minority shareholders of Contax Participações, or with shareholder(s) of the other companies of their respective groups concerning the Merger of Shares and the Corporate Restructuring as a whole:

(i)	APSIS Consultoria e Avaliações Ltda., enrolled with the National Corporate Taxpayers Register of the Ministry of Finance under CNPJ/MF No. 08.681.365/0001-30, and with the Regional Accounting Council of the State of Rio de Janeiro under CRC/RJ No. 005112/0-9, with its principal place of business at Rua da Assembléia No. 35, 12thfloor, Downtown, in the City of Rio de Janeiro, State of Rio de Janeiro, to conduct the valuation of the book net worth of Mobitel based on the audited financial statements drawn up on December 31, 2010; and
(ii)	Banco BTG Pactual S.A., to conduct the valuation of both Mobitel and Contax Participações through future profitability methodology based on retrospective analysis, scenario projection, and discounted cash flow on
	December 31, 2010 (“Base Date”), in accordancewith the criteria and premises listed inExhibit IIto this Instrument.

4.MERGER OF SHARES OFMOBITEL INTOCONTAXPARTICIPAÇÕES, VALUATIONS,ANDREPLACEMENTRATIO

4.1.Merger of Shares. By means of the Merger of Shares of Mobitel Shares, Mobitel shall become a wholly-owned subsidiary of Contax Participações, pursuant to and for the purposes of article 252 of Law No. 6404/76.

4.2.Valuations. For the purposes of the Merger of Mobitel Shares, the Specialized Companies, as the case may be, conducted the following valuations:

     4.2.1.Book Net Worth Valuation. For the purposes of accounting registration of the Mobitel shares to be transferred to Contax Participações and the consequent increase in the capital stock of Contax Participações, the book net worth of Mobitel wasvaluated based on its financial statements drawn up on December 31, 2010, in the amount of one hundred and seventy-eight million, two hundred and fifteen thousand, nine hundred and fifty-nineReaisand sixty-eight cents (R$178,215,959.68), or oneReal, fifteen cents and fraction thereof (R$1.1507) per share, in accordance with the accounting report contained inExhibit Ihereto, prepared by APSIS Consultoria e Avaliações Ltda.

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Draft for Discussion
June 3, 2011

     4.2.2.Economic Valuation. For the purposes of supporting the definition of the ratio of replacement of shares issued by Mobitel with shares issued by Contax Participações, both Mobitel and Contax Participações were valuated in accordance with the fairness opinion independently prepared by Banco BTG Pactual S.A. using future profitability methodology based on retrospective analysis, projected scenario and discounted cash flows on December 31, 2010, in accordance with the criteria and premises listed inExhibit IIto this Instrument.

4.3.Share Replacement Ratio Proposed for the Merger of Mobitel Shares: Thereplacement ratio was negotiated and determined independently by the Parties’managers based on: (i) the fairness opinion on the economic value of the companies obtained by the Parties from Banco BTG Pactual S.A.; and (ii) the economic value of Mobitel and of Contax Participações pursuant to the valuation reports contained in Exhibit II to this Instrument after the managers of Mobitel and of Contax Participações examined and discussed the recommendations and conclusions of the Special Committee of Contax Participações, as shown in the tables below:

Replacement Ratio Based on the Reports contained in Exhibit II

Company	Economic Value	Replacement Ratio
Mobitel	R$187 million to 213 million	1
		0.0343 to 0.0417 Registered
		Common Shares
Contax  Participações	R$2,233 million to 2,390 million
		0.0343 to 0.0418 Registered
		Preferred Shares

     4.3.1. Each shareholder of Mobitel shall receive, per each common share of Mobitel owned by it, zero point zero three hundred and sixty-two (0.0362) common shares issued by Contax Participações, multiplied by the percentage of common shares in which the capital stock of Contax Participações is divided, and, per each common share of Mobitel owned by it, zero point zero three hundred and sixty-three (0.0363) preferred shares issued by Contax Participações, multiplied by the percentage of preferred shares in which the capital stock of Contax Participações divided, resulting in the total issuance by Contax Participações of one million, eight hundred and seventy-six thousand, nine hundred and eighty-two (1,876,982) common shares and three millionand thirty-eight thousand, four hundred and ninety-nine (3,038,499) preferred shares, all book-entry shares with no par value.

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Draft for Discussion
June 3, 2011

     4.3.2.Allocation of the Value of Mobitel Shares and Increase in the Capital Stock of Contax Participações. In the event of Merger of Mobitel Shares to be approved pursuant to this Instrument, the book value of Mobitel shares of one hundred and seventy-eight million, two hundred and fifteen thousand, nine hundred and fifty-nineReaisand sixty-eight cents (R$178,215,959.68) pursuant to the valuation mentioned in item 4.2.1, thirty-four million, four hundred and fifty-five thousand, eight hundred and fortyReaisand fifty-six cents (R$34,455,840.56) shall be allocated to the capital stock of Contax Participações and one hundred and forty-three million, seven hundred and sixty thousand, one hundred nineteenReaisand twelve cents (R$143,760,119.12) shall be allocated to the capital reserve of Contax Participações. Therefore, the capital stock of Contax Participações shall be increased by thirty-four million, four hundred and fifty-five thousand, eight hundred and fortyReaisand fifty-six cents (R$34,455,840.56), thereby increasing from two hundred and twenty-three million, eight hundred and seventy-three thousand, one hundred and sixteenReaisand ten cents (R$223,873,116.10) to two hundred and fifty-eight million, three hundred and twenty-eight thousand, nine hundred and fifty-sixReaisand sixty-six cents (R$258,328,956.66), in accordance with the accounting report contained inExhibit IIto this Instrument.

     4.3.3.Shares Issued in the Merger of Shares. In the event the Merger of Shares is approved, one million, eight hundred and seventy-six thousand, nine hundred and eighty-two (1,876,982) new common shares and three million and thirty-eight thousand, four hundred and ninety-nine (3,038,499) new preferred shares, all registered and with no book value, shall be issued to be fully attributed to the shareholders of Mobitel in accordance with their corresponding equity interest in the capital stock of Mobitel.

     4.3.4. In view of the increase in the capital stock as described in Sections 4.3.2 and 4.3.3. above, the capital stock of Contax Participações shall begin to be represented by sixty-four million, six hundred and eighty-six thousand and eighty-one (64,686,081) shares, with twenty-four million, nine hundred and sixty-six thousand, five hundred and eighty-two (24,966,582) common shares and thirty-nine million, seven hundred and nineteen thousand, four hundred and ninety-nine (39,719,499) preferred shares, all registered and with no par value.

     4.3.5. The shares to be issued by Contax Participações in view of the Merger of Mobitel Shares shall be entitled to all rights theretofore ensured to already existing shares of Contax Participações, including sharing profits declared by Contax Participações to its shareholder from the date of approval of the Merger of Shares.

7

Draft for Discussion
June 3, 2011

4.4.Withdrawal Right of Contax Participações’ Shareholders.In compliance with the provisions of articles 252, paragraph 1 and article 137, II of Law No. 6404/76, as amended, the dissenting shareholders of Contax Participações who exercise their withdrawal right due to the approval of the Merger of Shares of Mobitel shall be entitled to the reimbursement of the equity value of their shares, calculated based upon the Financial Statements of Contax Participações drawn up on December 31^st, 2010 and disclosed on March 2^nd, 2011. Therefore, the reimbursement amount to be paid to the dissenting shareholders of Contax Participações shall be seven Reais and fraction (R$7.0097) per share, without prejudice to the mentioned shareholder requesting the drawing up of a special balance sheet for the purposes of calculating the reimbursement amount, as provided for in article 45, paragraph 2 of Law No. 6404/76.

     4.4.1.Term for Exercise of the Withdrawal Right of the Shareholders of Contax Participações.The withdrawal right can be exercised by the dissenting shareholder of Contax Participações within no longer than thirty (30) days as of the date of release of the minutes of the shareholders meeting which resolves on the Merger of Shares of Mobitel, as provided for in article 137, IV of Law No. 6404/76, provided that the effective payment of the reimbursement amount shall remain conditioned to the performance of all acts provided for in this Section 4.

     4.4.1.1. The dissenting shareholder of Contax Participações may exercise its reimbursement right only in relation to the shares demonstrably owned by such shareholder, continuously maintained by the shareholder from January 25^th, 2011, date in which the Corporate Restructuring was released to the market, by means of a Notice of Material Event, and the date of the effective exercise of the withdrawal right.

     4.4.2. In case it is understood that the exercise of the withdrawal right by the dissenting shareholders will endanger the financial stability of Contax Participações, the management of Contax Participações may call a new shareholders' meeting to resolve on the ratification or reconsideration of the Merger of Shares, pursuant to art. 137, paragraph 3, of Law No. 6404/76.

4.5.Withdrawal Right of Mobitel Shareholder.In compliance with the provisions of articles 252, paragraph 1, 264 and article 137, II of Law No. 6404/76, as well as pursuant to the terms and conditions of the Agreement for Exercise of Withdrawal Right and other Covenants, executed on January 31^st, 2011, by and between Mobitel, GPTITecnologia da Informação S.A., Fábio Carlos Pereira (“Fábio”), and Portugal TelecomBrasil S.A., with the intervention of GET–Gestão Empresarial e Tecnológica Ltda.(“Agreement for Exercise of Withdrawal Right”), in case the Merger of Shares ofMobitel is approved pursuant to this Instrument, the shareholder Fábio, holder of nineteen million, three hundred fifty nine thousand, eight hundred seventy four (19,359,874) common, registered shares with no par value, representing twelve pointfive percent (12.5%) of the total voting capital stock of Mobitel (“Fábio Shares”),undertook to exercise its withdrawal right from Mobitel and, due to the mentioned Agreement for Exercise of Withdrawal Right, shall be entitled to the reimbursement of the amount of its Fabio Shares comprising twenty three million Reais (R$23,000,000.00)¹.

¹Amount subject to adjustment according to the terms of the Agreement for Exercise of Withdrawal Right.

8

Draft for Discussion
June 3, 2011

4.5.1Term for Exercising the Withdrawal Right of the Dissenting Shareholder of Mobitel.The withdrawal right may be exercised by the dissenting shareholder of Mobitel within no longer than thirty (30) days as of the date of release of the minutes of shareholders meeting which resolves on the Merger of Shares of Mobitel, subject-matter of this Section 4, as provided for in article 137, IV of Law No. 6404/76, as amended, provided that the effective payment of the reimbursement amount shall remain conditioned to the performance of all acts provided for in this Section 4, as well as the compliance with the terms and conditions of the Agreement for Exercise of Withdrawal Right.

     4.5.1.1 The dissenting shareholder of Mobitel may exercise its reimbursement right in relation to the shares held by him/her on the date of the first release of the call notice for the shareholders meeting which resolved on the Merger of Shares of Mobitel, subject-matter of this Section 4, the call being dispended with pursuant to article 124, paragraph 4 of Law No. 6404, as amended, in relation to the shares he/she holds on the date of the mentioned shareholders meeting.

4.6.Amendment to the Contax Participações’ By-laws. The by-laws of Contax Participações shall be amended in order to reproduce the capital increase described in Section 4.3 above

4.7.Implementation.The managements of Mobitel and Contax Participações undertake to perform all acts, registrations and annotations necessary to the implementation of the Merger of Shares of Mobitel, after the approval by the shareholders' meetings of Mobitel and Contax Participações.

5.STATEMENT OF THESPECIALCOMMITTEE OFCONTAXPARTICIPAÇÕES

5.1. Notwithstanding the Merger of Shares not involving controlling and controlled companies, in compliance with the market good practices, the managers of the Parties complied with CVM Guideline 35, reason why the Independent Special Committee of Contax Participações was formed. The Independent Special Committee of Contax Participações, pursuant to CVM Guideline 35, after reviewing and discussing, independently, the conditions of Merger of Shares, based upon reports and studies of the financial and legal consultants retained by Contax Participações, the proposals of themanagement related to the conditions of the Corporate Restructuring, as well as the other documents presented by the management of Contax Participações, and the valuation prepared by Barclays Capital, independent financial advisor retained exclusively for assisting the analysis of the Committee, presented its considerations to the managements of Contax Participações and Mobitel, concluding that the replacement ratio proposed for the Merger of Shares described in Section 4.3 above is appropriateand, from the Contax Participações’ point of view, equitable for the Merger of Shares.

9

Draft for Discussion
June 3, 2011

6.GENERALPROVISIONS

6.1.Adjustments of equity interests as a result of the exercise of the withdrawal right.All adjustments in the amount of capital stocks and number of shares issued by the Parties deemed necessary shall be carried out, due to the exercise of any withdrawal right by the dissenting shareholders of the shareholders meeting of Contax Participações and the shareholders meeting of Mobitel which resolve on the Merger of Shares of Mobitel, subject-matter hereof.

6.2. Equity changes occurred in Dedic and Contax Participações as of December 31^st, 2010, Base Date of the Merger of Shares, to the date of approval of the Merger of Shares shall be directly allocated to each one of the companies.

6.3.Lack of Succession.By virtue of the consummation of the Merger of Shares, Contax Participações shall not absorb assets, rights or liabilities of Mobitel, so that Mobitel will maintain its legal personality intact, no succession being carried out.

6.4.Compliance with Applicable Laws and Regulations.While implementing the Corporate Restructuring, the managers of the Parties shall observe the legal and regulatory provisions applicable, including, without limitation, CVM Guidelines Nos. 319/99, 320/99 and 349/01.

6.5.Annotations and RegistrationsThe management of Contax Participações, with the cooperation of Mobitel's management, shall be accountable for performing all acts necessary to the implementation of the Merger of Shares mentioned hereunder, as well as all communications, registrations and annotations of data and everything else necessary to the consummation of the transaction.

6.6.Jurisdiction.The Parties and their respective managements elect the central courts of the City of Rio de Janeiro, State of Rio de Janeiro, as the courts of jurisdiction to solve any controversies resulting from this Instrument.

The Parties execute this instrument in three (3) identical counterparts, in the presence of two (2) witnesses identified below. Rio de Janeiro, June 14^th, 2011.

10

Draft for Discussion
June 3, 2011

	MOBITEL S.A.
By:	By:
Title:	Title:
	CONTAX PARTICIPAÇÕES S.A.
By:	By:
Title:	Title:
Witnesses:
Name:	Name:
ID CARD (RG):	ID CARD (RG):

11

Valuation Report 

RJ-0310/11-01 

MOBITEL S.A. 

REPORT:	RJ-0310/10-01
BASEDATE:	December 31, 2010
REQUESTING PARTY:	CONTAX PARTICIPAÇÕES SA, a publicly-heldtraded company, with headquartersat Rua do Passeio, No. 48-56, part, in the Cityand State of Rio de Janeiro, Brazil, enrolled with the National Corporate Taxpayers Register of the Ministry of Finance (CNPJ/MF)  under No. 04.032.433/0001-80, hereinafter referred to asCONTAX.
SUBJECT MATTER:	MOBITEL SA, a joint-stock corporation, with headquarters at Rua Desembargador Eliseu Guilherme, No. 282-292, District ofParaíso, City and State of São Paulo, Brazil, enrolled with the National Corporate Taxpayers’Register of the Ministry of Finance(CNPJ/MF) under No. 67.313.221/0001-90, hereinafter referred to as MOBITEL.
PURPOSE:	Determining the book value of MOBITEL shares for merger of shares by CONTAX, pursuant to art. 252 of Law No. 6,404 of December 15,1976 (Corporate Law).

1

CONTENTS
1.INTRODUCTION	3
2.PRINCIPLES AND QUALIFICATIONS	4
3.LIMITATIONS OF LIABILITY	5
4.VALUATION METHODOLOGY	6
5.VALUATION OF SHAREHOLDERS' VALUE	7
6.CONCLUSION	8
7.LISTOFEXHIBITS	9

2

1. INTRODUCTION
APSISConsultoria e Avaliações Ltda., hereinafter referred to as APSIS, withheadquarters at Rua da Assembleia, No. 35, 12th floor, Downtown, in the Cityand  State  of  Rio  de  Janeiro,  Brazil,  enrolled  with  the  CNPJ  under  No.  08.681.365/0001-30, with the Regional Accounting Council CRC/RJ-005112/O-9, was appointed to determineof the book value of MOBITEL shares for merger ofshares by CONTAX,pursuant to art. 252 of Law No. 6,404 of December 15, 1976(Corporate Law).  Inpreparation of thisreport, information and data provided by third parties wasused  in  the  form  of  documents and  oral  interviews  with  the  client.  The estimates used in this process are based on documents and information,whichinclude the following:  §MOBITEL’saudited Balance Sheet as of December 31, 2010. (Exhibit 01)  APSISrecently  conducted  valuations  for  various  purposes  in  the  following publicly-held companies:  §AMÉRICALATINA LOGÍSTICA DO BRASIL S/A  §BANCO PACTUAL S/A  §CIMENTO MAUÁ S/A  §ESTA-EMPRESA SANEADORA TERRITORIAL AGRÍCOLA S/A.  §GEODEXCOMMUNICATIONS DO BRASIL S/A  §GERDAU S/A  §HOTÉIS OTHON S/A  §IBESTS/A  §L.R. CIA.BRAS.PRODS.HIGIENEE TOUCADOR S/A  §LIGHT SERVIÇOS DE ELETRICIDADE S/A  §LOJAS AMERICANAS S/A  §REPSOL YPF BRASIL S/A	§TAMTRANSPORTESAÉREOS MERIDIONALS/A  §WAL PETROLEOS/A  APSIS team responsible for this work consists of the following professionals:
	§AMILCARDECASTRO Director  Bachelorof Law §ANA CRISTINA FRANÇA DESOUZAManaging partner  CivilEngineer(CREA/RJ 91.1.03043-4)  Graduate degree in Accounting  §ANTÔNIO LUIZ FEIJÓNICOLAUProject Manager  §ANTÔNIO REISSILVA FILHO Director  CivilEngineer(CREA/SP 107.169)  Master's degree in Business Administration  §BETINA DENGLERProject Manager  §CARLOS MAGNO SANCHESProject Manager  §CLAUDIO MARÇAL DEFREITASAccountant (CRC/RJ 55029/O-1)  §FELLIPEF. ROSMANProject Manager  §GABRIEL ROCHA VENTURIMProject Manager  §LUIZPAULOCESARSILVEIRA Director  Mechanical Engineer(CREA/RJ 89.1.00165-1)  Master's degree in Business Administration  §MARGARETH GUIZAN DA SILVA OLIVEIRA Director  CivilEngineer(CREA/RJ 91.1.03035-3)  §RICARDODUARTECARNEIRO MONTEIROManaging Partner  CivilEngineer(CREA/RJ 30137-D)  Graduate degree in Economic Engineering  §RENATA POZZATOCARNEIRO MONTEIROProject Manager  §SERGIOFREITASDE SOUZA Director  Economist (CORECON/RJ23521-0)

3

2. PRINCIPLES AND QUALIFICATIONS
The report that is the subject matter of the work listed, calculated and particularized, strictly follows the fundamental principles described below:
§The consultants have no interest, direct or indirect, in the companiesinvolved or in the operation,and there is no other relevant circumstance thatmay characterize a conflict of interests.  §To  the  best  of  the  consultants’ knowledge  and  credit,  the  analyses,opinions and conclusions expressed in this report are based on true andaccurate data, investigations, research and surveys.  §The report presents all the restrictive conditions imposed by the adopted methodologies, which affect the analysis, opinions and conclusions contained in it.  §APSIS’s professional fees are not in any way, subject to the findings of this report.  §APSIS  assumes  full  responsibility  for  Engineering  Appraisal  ,  includingimplicit matters, to perform its honorable duties, as primarily establishedin laws, codes or own regulations.  §Any information received from third parties is assumed to be correct, and thesources thereof are contained in this report.	§The  report  was  prepared  by  APSIS  and  no  one,  except  their  own consultants, prepared the analysis andrespective conclusions.  §For  projection  purposes,  we  assumed  the  inexistence  of  liens  or encumbrances of any kind, whether judicial or extra judicial, affectingthe companies in question, other than those listed in this report.  §This report meets the specifications and criteria established by USPAP(Uniform Standards of Professional Appraisal Practice), in addition to therequirements imposed by different bodies, such as: Ministry of Finance,Central Bank, Banco do Brasil, CVM  -  Brazilian Securities Commission, SUSEP - Superintendenceof Private Insurance, RIR - Regulation of Income Taxetc.  §The controller and the managers of the companies involved didnot direct,limit, hinder or performedany acts that have or might have compromisedaccess to, use or knowledge of information, assets, documents or work methodologiesrelevant to the quality of the respective conclusions contained in this work.

4

3. LIMITATIONSOF LIABILITY 

§For this report, APSIS used information and historical data audited by third parties orunaudited, and unaudited projected data, provided for in writingor  orally  by  company  management  or  obtained  from  the  sources mentioned. Therefore, APSIS assumed the data and informationobtained for this report as true and is not liable with respect to its accuracy. 

§The  scope  of  this  work  does  not  include  an  audit  of  the  financialstatements or a review of the work performed byauditors. 

§Our work is designed for use by the requesting company, its partners andother companiesinvolved in the project,aiming towards the previously described goal. 

§We are not liable for occasional losses to the requesting party and itssubsidiaries, partners,officers, creditorsor other parties as a result of the 

useof data and information provided by the company and in this report. 

5

4. VALUATIONMETHODOLOGY 

Examination of the supporting documentation previously mentioned, in order to check for good bookkeepingin compliance with regulatory, normative andstatutory provisions governing the matter, pursuant “GenerallyAccepted Accounting Principles and Conventions” 

MOBITEL’s accounting books and all other documentsnecessary to prepare thisreport  were  examined based  on  MOBITEL’s  audited  balance  sheet  as  of December 31, 2010. 

Experts have established thatMOBITEL’sassets and liabilities are properlyaccounted for. 

6

5.VALUATIONOF SHAREHOLDERSEQUITY
MOBITEL’saccounting bookswere examined along with all other documents	MOBITEL S.A	FINANCIAL STATEMENTS
necessary to prepare this report.	BALANCE SHEET (IN REAIS)	BALANCES AS OF DECEMBER 31, 2010
Experts have establishedthat the MOBITEL’sshareholders’equity is one	CURRENT ASSETS	105,793,489.69
hundred seventy-eight million,twohundred fifteenthousand,nine hundred and	NON-CURRENT ASSENTS	328,866,705.10
fifty-nine Reais and sixty-eight cents (R$178,215,959.68), asofDecember 31,	LONG TERM RECEIVABLES	54,274,850.81
2010. Considering that thetotalnumberofMOBITEL shares is one hundred fifty-	PERMANENT ASSETS	274,591,854.29
four million, eight hundred seventy-eight thousand, nine hundred and ninety-	Investments	140,168,901.28
three (154,878,993), the book valuepershare is oneReal point one fivezero	Property and equipment	100,312,293.70
seven (R$ 1.1507).	Intangible assets	34,110,659.31
	TOTAL ASSETS	434,660,194.79
	CURRENT LIABILITIES	100,711,445.13
	NON-CURRENT LIABILITIES	155,732,789.98
	LONG TERM LIABILITIES	155,732,789.98
	SHAREHOLDERS' EQUITY	178,215,959.68
	TOTAL LIABILITIES	434,660,194.79
	Quantity of shares of Capital Stock	154,878,993
	Equity Value per Share	1.1507

7

6. CONCLUSION 

Based on the examinationof the documentation mentioned above and on the basis of APSIS’s studies, the experts concluded thatMOBITEL’s shareholders’ equity, for merger of shares by CONTAX, corresponds to one hundred and seventy-eightmillion, two hundred fifteen thousand, nine hundred and fifty-nine Reais and sixty-eight cents (R$178,215,959.68), or one Real point one five seven zero (R$1.1507) per share as of December 31, 2010. 

Report RJ-0310/11-01, composed of nine (09) pages typed on one side and two (02) exhibits, is concluded. APSISConsultoria e Avaliações Ltda.,CRC/RJ-005112/O-9, a company specialized in asset valuation, legally represented below by its directors, is at your disposal to answer any questions that may be necessary. 

Rio de Janeiro, May 07, 2011. 

AMILCAR DE CASTRO	CLAUDIO MARÇAL DE FREITAS
Director	Accountant (CRC/RJ 55029/0-1)

8

7. LIST OF EXHIBITS 

1.  SUPPORTDOCUMENTATION 

2.APSIS’SGLOSSARY ANDPROFILE 

SÃO PAULO – SP	RIO DE JANEIRO –RJ
Av.Angélica, nº2.503, Conj. 42	Rua daAssembléia, nº 35, 12º andar
Consolação, CEP: 01227-200	Centro, CEP: 20011-001
Tel.: +55113666.8448Fax: +55113662.5722	Tel.: +55212212.6850Fax: +55212212.6851

dmp/10475.doc 

06/20/11

9

 

Contax Participações S.A. and Mobitel S.A.

Valuationreport for theincorporationof 100% of Mobitel S.A. shares by ContaxParticipaçõesS.A.

January 25^th, 2011

IMPORTANT DISCLAIMER:Thisdocumentis a freetranslationonly. Due to thecomplexitiesoflanguage translation, translationsare not always precise. The originaldocumentwaspreparedinPortugueseand in case of anydivergence, discrepancyordifference betweenthis version and thePortugueseversion, thePortugueseversion shall prevail. ThePortugueseversion is the only valid andcompleteversion and shall prevail for any and allpurposes.TheTranslationwas made by persons whose nativelanguageis not English,thereforethere is nowarrantyas to theaccuracy, reliabilityorcompletenessof anyinformation translatedand no one should rely on theaccuracy, reliabilityorcompletenessof suchinformation.There is noassuranceas to theaccuracy, reliabilityorcompletenessof thetranslation.Any person reading thistranslationand relying on it should do so at his or her own risk.

Index
SECTION 1	Executive Summary			02
SECTION 2	Information About the Evaluator			07
SECTION 3	Market and Companies' Overview			09
	3	.A	Market Overview	10
	3	.B	Contax Overview	13
	3	.C	Dedic GPTI Overview	19
SECTION 4	General Assumptions			25
SECTION 5	Contax Valuation			27
	5	.A	Discounted Cash Flow	28
	5	.B	Comparable Companies Trading Multiples	36
	5	.C	Accounting Book Value	38
	5	.D	Volume Weighted Average Price	40
SECTION 6	Dedic GPTI Valuation			43
	6	.A	Discounted Cash Flow	44
	6	.B	Comparable Companies Trading Multiples	53
	6	.C	Accounting Book Value	55
APPENDIX A	Companies' Weighted Average Cost of Capital (WACC)			57
APPENDIX B	Comparable Companies Trading Multiples			59
APPENDIX C	Description of Valuation Methodologies			62
APPENDIX D	Terms and Definitions Used in the Valuation Report			67
APPENDIX E	Additional Statements and Information			69

1

SECTION 1

Executive Summary

2

Introduction

This Valuation Report was prepared by Banco BTG Pactual S.A. (“BTG Pactual”), upon request by Contax Participações S.A.(“Contax”) for the purposes specified in Law n°6.404, dated December 15^th, 1976 (as amended) (“Lei das S.A.”), in connectionwith the incorporation of all Mobitel S.A. (“Dedic GPTI”) shares by Contax (“Transaction”).

Transaction Summary

§	In January 2011, Contax and Dedic GPTI executed an agreement for the incorporation of Dedic GPTI shares by Contax
	§	According to the agreement signed by both parties, Contax committed to, subject to a timeline foreseen in the agreement, to conduct all the necessary steps to submit a proposal for the incorporation of Dedic GPTI by Contax, subject to the terms established, making Dedic GPTI a subsidiary of Contax
§	As part of the agreement, Contax committed to take all steps, within the terms established by the agreement, envisaging:
	§	(i) the calling of a shareholders’ meeting change the Company’s Byelaws, in order to approve the constitution of an independent committee;
	§	(ii) the calling of a Board Meeting in order to indicate the members of such independent committee, which will evaluate and deliberate about the terms and conditions of such Incorporation
§	Additionally, Dedic GPTI signed in January 2011 a stock purchase agreement to acquire all Dedic GPTI shares held by Mr. Fábio Carlos Pereira (representing 12.5% of total shares issued by the company) for R$ 23 million

3

Contax Summary Valuation

Based on the fair economic value calculated using the discounted cash flow to firm methodology, the Contax ON shares’ valueranges from R$37.64 toR$40.30 per share and the Contax PN shares’ value ranges from R$37.59 to R$40.24 per share. Forfurther information on the valuation methodologies, please see Appendix C - Description of Valuation Methodologies, on page62 of this report

Fair Economic Value (Discounted Cash Flow)(1)				Book Value
(R$ million, except price per share)				(R$ million, except price per share)
Perpetuity growth rate (US$ nominal terms)	1.50%	2.00%	2.50%
WACC (US$ nominal terms)	10.0%	10.0%	10.0%	Total assets	1,290.9
Enterprise value	$2,143	$2,217	$2,301	(-) Total liabilities	880.8
(-) (Net debt) net cash(2)	$90	$90	$90	(-) Minority interest	1.8
Equity value	$2,233	$2,307	$2,390	= Shareholders’ equity	408.3
Number of ON shares (million)(3)	22.7	22.7	22.7	Number of shares (million)(3)	59.4
Price per ON share (R$ / share)(4)	$37.64	$38.88	$40.30	R$/share	6.88
Number of PN shares (million)(3)	36.7	36.7	36.7
Price per PN share (R$ / share)(4)	$37.59	$38.84	$40.24
Fair Economic Value (Trading Multiples)				Volume Weighted Average Price
(R$ million, except multiples and value per share)		2011E	2012E
				12 months period prior to 12/31/2010
EBITDA		341.1	412.0	ON:R$29.59 /PN:R$25.29
EV/EBITDA Multiple(5)		6.7x	6.6x
Enterprise value		2,280.7	2,732.8	6 months period prior to 12/31/2010
(-) (Net debt) net cash(2)		89.7	89.7	ON:R$31.04/PN:R$26.61
Equity value		2,370.5	2,822.5
Number of shares (million)(3)		59.4	59.4	3 months period prior to 12/31/2010
R$/share		39.93	47.54	ON:R$31.16/PN:R$29.82

Source: Company, CVM, Economática and BTG Pactual.
Note:
1	As of December 31st, 2010.
2	As of September 30th, 2010.
3	Excludes treasury shares.
4	Assumes a ON/PN ratio based on the average spread of ON / PN shares, during the 60 days prior to December 31st, 2010.
5	Considers the median of comparable companies trading multiples as of December 31st, 2010. Source: Factset.

4

Dedic GPTI Summary Valuation

Based on the fair economic value calculated using the discounted cash flow to firm methodology, Dedic GPTI shares’ valueranges from R$1.38 to R$1.57 per share. For further information on the valuation methodologies, please see Appendix C -Description of Valuation Methodologies, on page 62 of this report

Fair Economic Value (Discounted Cash Flow)(1)				Book Value
(R$ million, except price per share)				(R$ million, except price per share)
Perpetuity growth rate (US$ nominal terms)	1.50%	2.00%	2.50%	Total assets	486.3
WACC (US$ nominal terms)	10.0%	10.0%	10.0%	(-) Total liabilities	311.1
Enterprise value	$371	$383	$397	(-) Minority interest	0.0
(-) (Net debt) net cash(3)	($184)	($184)	($184)	= Shareholders’ Equity	175.2
Equity value	$187	$199	$213	Number of shares (million)(4)	154.9
Number of shares (million)(4)	135.5	135.5	135.5	R$/share	1.13
Price per share (R$ / share)	$1.38	$1.47	$1.57

Fair Economic Value (Trading Multiples)
(R$ million, except multiples and value per share)	2011E	2012E
EBITDA	84.7	95.9
EV/EBITDA Multiple(2)	6.7x	6.6x
Enterprise value	566.6	636.3
(-) (Net debt) net cash(3)	(183.9	(183.9
Equity value	382.7	452.4
Number of shares (million)(4)	135.5	135.5
R$/share	2.82	3.34

Source: Company, CVM, Economática and BTG Pactual.
1	As of December 31st, 2010.
2	Considers the median of comparable companies trading multiples as of December 31st, 2010. Source: Factset.
3	As of August 31st, 2010, plus R$23 million as per note 4 below.
4	Based on information provided by Dedic GPTI, we considered Dedic GPTI has acquired 19,359,874 shares held by Mr. Fábio Carlos Pereira for R$23 million. This total wasadded to the net debt as of August 31st, 2010 for Dedic GPTI valuation.

5

Exchange Ratio Based on Discounted Cash Flow

Analysis of the exchange ratio based on the discounted cash flow to firm methodology

Contax				Dedic GPTI
(Fair economic value per share based on the discounted cash flow method(1). R$ million, except price per share)				(Fair economic value per share based on the discounted cash flow method(1). R$ million, except price per share)
Perpetuity growth rate (US$ nominal terms)	1.50%	2.00%	2.50%	Perpetuity growth rate (US$ nominal terms)	1.50%	2.00%	2.50%
WACC (US$ nominal terms)	10.0%	10.0%	10.0%	WACC (US$ nominal terms)	10.0%	10.0%	10.0%
Enterprise value	$2,143	2,217	$2,301	Enterprise value	$371	$383	$397
(-) (Net debt) net cash(2)	$90	$90	$90	(-) (Net debt) net cash (5)	($184)	($184)	($184)
Equity value	$2,233	2,307	$2,390	Equity value	$187	$199	$213
Number of ON shares (million)(3)	22.7	22.7	22.7	Number of shares (million)	135.5	135.5	135.5
Price per ON share (R$ / share)(4)	$37.64	38.88	$40.30	Price per share (R$ / share)	$1.38	$1.47	$1.57
Number of PN shares (milhões)(3)	36.7	36.7	36.7
Price per PN share (R$ / share)(4)	$37.59	38.84	$40.24
				ON:0.03425595x      PN:0.03429939x
				ON:0.03779068x      PN:0.03783860X
				ON:0.04172383x      PN:0.04177674X

• Based on themethodologyandassumptions presentedtheexchangeratio rangebetweenContax and Dedic GPTI shares isbetween 0.03425595xand0.04172383xfor ON shares and0.03429939xand0.04177674xfor PN shares, based on thecomparisonof theindicativevalues per sharecalculatedfor bothCompaniesand the ratio ON/PN of Contax shares based on the VWAP of each class of share in the period of 60 days beforeDecember31^st, 2010

Source: Company, CVM, Economática and BTG Pactual.
1	As of December 31st, 2010.
2	As of September 30th, 2010.
3	Excludes treasury shares.
4	Assumes a ON/PN ratio based on the average spread of ON / PN shares, during the 60 days prior to December 31st, 2010.
5	As of August 31st, 2010, plus R$23 million as per note 6 below.
6	Based on information provided by Dedic GPTI, we considered Dedic GPTI has acquired 19,359,874 shares held by Mr. Fábio Carlos Pereira for R$23 million. This total wasadded to the net debt as of August 31st, 2010 for Dedic GPTI valuation.

6

SECTION 2

Information About the Evaluator

7

Information About the Evaluator

As established in CVM Instruction No. 319, Banco BTG Pactual S.A. (“BTG Pactual”) represents that:

1.BTG Pactual holds nosecuritiesissued by ContaxParticipaçõesS.A.(CTAX3,CTAX4 andCTXNY),based on data as of January 17^th, 2011.

2.It has no direct or indirect interest in Contax, Dedic GPTI or in theTransaction,and there is no other relevantcircumstancethat may beconsidereda conflict of interest;

3.Thecontrolling shareholderormanagersof Contax and Dedic GPTI have notdirected,limited,hinderedorperformedany act thatadverselyaffected or may haveadverselyaffected the access to, use orknowledgeofinformation,assets,documentsor workmethodologiesrelevant for the quality of therespective conclusions;.

4.It has no conflict of interest that may in any way restrict its capacity to arrive at theconclusions independently presentedin thisValuationReport.

8

SECTION 3

Market and Companies' Overview

9

SECTION 3.A

Market and Companies' Overview

Market Overview

10

Brazilian Contact Center Market Overview

Brazilian Contact Center and Information Technology market presents several growth opportunities and benefits directly frompositive Brazilian macroeconomic perspectives

Revenue Evolution of the Brazilian Contact Center Market

(US$ billion)

The Brazilian Contact Center Market

The Brazilian market presents a huge outsourcing potential
	Brazil is gaining importance in the global scenario and already represents 7.2% of the global market
	Growth should be driven by the increase in outsourcing of non-core activities by the industries that most demand contact center services (banking, telecom and retail)

Source: IDC andBRASCOM.

11

Brazilian Information Technology Market Overview

Brazilian Contact Center and Information Technology market presents several growth opportunities and benefits directly frompositive Brazilian macroeconomic perspectives

Revenue Evolution of the BrazilianInformation TechnologyMarket

(US$ billion; annual growth %)

The Brazilian Information Technology Market		Information Technology Market Revenues, by Country
The Brazilian IT sector benefits from the following aspects:
	The Brazilian IT sector combines technological expertise with anextensive knowledge of business processes for specific businesses,such as the financial sector
	Global trend to play an important role in IT infrastructure in LatinAmerica for multinational companies (ex. Unilever, Merck, Rhodia)

12

SECTION 3.B

Market and Companies' Overview

Contax Overview

13

Contax Overview

Company Overview

Brief Overview
§Contax Participações S.A. is one of the largest companies in corporate services in Brazil, the market leader in contact center and collection and isexpanding its services portfolio to become the leading company in BPO (Business Process Outsourcing), specialized, in a comprehensive manner, inthe client relationship management (CRM)
§Currently, the largest portion of its activity is focused in the segments of Customer Services, Debt Collection, Telemarketing, Retention, Back-office,Technology Services and Trade Marketing
	§Contax has approximately 80 clients ans its business strategy is focused in the development of long term relationship with its clients, largecorporations of different sectors that use its services, such as telecomunication, financials, utilities, services, retail, among others
	§In September 2010, Contax had approximately 84 thousand employees distributed in 9 Brazilian states and in the Distrito Federal
Recent Events
§August 31st, 2010: Contax announced the acquisition of Ability Comunicação Integrada Ltda. for a price that could reach a total of R$82,474,000.00.Ability is one of Brazil’s largest and best known companies in the Trade Marketing segment, which involves the promotion and sale of products andservices at points of sale, posting revenues of R$ 104 million and EBITDA of R$ 10 million in the year ended on December 31, 2009.
§December 17th, 2010: Contax announced a change in its Executives Board. Mr. Michel Sarkis, Contax’s Chief Financial and Investor Relations Officerwill take over the position of Chief Executive Officer, previously held by Mr. James Meaney. Michel Sarkis is 41 years old and one of the first executiveofficers hired by Contax.

14

Contax Overview

Company Overview

Board of Directors and Executives Board
§Board of Directors	§Executives Board
-Fernando Antonio Pimentel Melo,Chairman	-Michel Neves Sarkis,Chief Executive, Chief Financial and Investor Relations Officer
-Pedro Jereissati,Member	-Eduardo Nunes de Noronha,Director
-Carlos Jereissati,Member	-Dimitrius Rogério de Oliveira,Director
-Cristina Anne Betts,Member
-Otavio Marques de Azevedo,Member
-Antonio Adriano Silva,Member
-Armando Galhardo Nunes Guerra Junior,Member
-Paulo Edgar Trapp,Member
-Marcel Cecchi Vieira,Member
-Sergio Francisco da Silva,Member
-Newton Carneiro da Cunha,Member
-Manuel Jeremias Leite Caldas,Member

Shareholder Structure
	Number of ON		Number of PN		Total Number of
	Shares	% of Total ON	Shares	% of Total PN	Shares	% of Total
CTX Participações S.A.	15,992,929	69.3%	3,880,666	10.6%	19,873,595	33.2%
Free float	6,694,875	29.0%	32,800,334	89.4%	39,495,209	66.1%
Treasury shares	401,796	1.7%	-	0.0%	401,796	0.7%
Total	23,089,600	100.0%	36,681,000	100.0%	59,770,600	100.0%

15

Contax Overview

Financial Statements: Income Statement

	Twelve months ended:			Nine months ended:
Income Statement	12/31/2007	12/31/2008	12/31/2009	09/30/2009	09/30/2010
(Values in R$ ‘000)
Gross revenue	1.475.488	1.916.115	2.335.252	1.703.692	1.898.011
Deductions	(109.673)	(141.387)	(174.233)	(127.472)	(138.451)
Net revenue	1.365.815	1.774.728	2.161.019	1.576.220	1.759.560
Cost of products sold / services rendered	(1.185.079)	(1.490.647)	(1.757.272)	(1.311.860)	(1.498.726)
Gross profit	180.736	284.081	403.747	264.360	260.834
Operating income / (expenses)	(106.031)	(138.213)	(195.126)	(144.719)	(136.403)
Selling	(23.986)	(28.488)	(27.709)	(21.143)	(19.051)
General and administrative	(62.920)	(91.049)	(138.586)	(102.599)	(98.433)
Financial	(3.546)	(50)	(15.391)	(12.021)	56
Other operating revenue / (expenses)	(15.579)	(18.626)	(13.440)	(8.956)	(18.975)
Operating result	74.705	145.868	208.621	119.641	124.431
Earnings before income taxes and social contribution	74.705	145.868	208.621	119.641	124.431
Income tax and social contribution	(24.450)	(51.370)	(70.998)	(40.559)	(51.920)
Deferred taxes	(2.881)	(2.086)	1.659	(2.385)	2.432
Minority interest	-	(3)	634	587	(366)
Net profit (losses)	47.374	92.409	139.916	77.284	74.577

16

Contax Overview

Financial Statements: Consolidated Balance Sheet

	Period ended:
ASSETS	12/31/2007	12/31/2008	12/31/2009	09/30/2010
(Values in R$ ‘000)
Current assets	374.248	524.083	578.322	565.023
Cash & cash equivalents	240.310	355.928	357.853	306.522
Credits (clients)	83.492	102.134	128.486	173.004
Other credits	1.371	-	-	-
Inventory	-	-	-	-
Others	49.075	66.021	91.983	85.497
Non-current assets	47.928	79.336	119.658	200.701
Deferred and recoverable taxes	17.574	25.346	26.917	39.832
Judicial deposits	17.787	35.338	53.382	81.823
Credits receivables	11.678	17.530	11.425	10.576
Financial investments	-	-	26.590	66.081
Other assets	889	1.122	1.344	2.389
Fixed assets	322.443	389.267	432.919	525.131
Investments	-	-	-	74.365
Plant, property & equipment	254.467	304.800	352.473	377.849
Intangible assets	67.976	84.467	80.446	72.917
Total Assets	744.619	992.686	1.130.899	1.290.855

17

Contax Overview

Financial Statements: Consolidated Balance Sheet

	Period ended:
LIABILITIES AND SHAREHOLDERS’ EQUITY	12/31/2007	12/31/2008	12/31/2009	09/30/2010
(Values in R$ ‘000)
Current liabilities	290.098	411.393	556.180	501.585
Short-term loans and financing	300	14.219	55.070	61.359
Debentures	-	-	-	-
Suppliers	72.466	76.847	77.033	69.933
Taxes payable	38.990	68.749	92.703	85.906
Dividend payable	14.271	51.364	92.190	3.192
Provisions	-	-	-	-
Related parties	-	-	-	-
Others	164.071	200.214	239.184	281.195
Long term liabilities	175.325	296.516	230.616	379.204
Long-term loans and financing	100.060	203.750	149.521	219.523
Debentures	-	-	-	-
Provisions	46.860	64.151	59.921	85.594
Related parties	-	-	-	-
Others	28.405	28.615	21.174	74.087
Minority interest	-	2.079	1.446	1.810
Shareholders’ Equity	279.196	282.698	342.657	408.256
Capital stock	223.873	223.873	223.873	223.873
Capital reserves	9.254	29	19.639	13.634
Income reserves	57.153	69.880	99.145	96.172
Accumulated profit / losses	(11.084)	(11.084)	-	74.577
Total Liabilities and Shareholders’ Equity	744.619	992.686	1.130.899	1.290.855

18

SECTION 3.C

Market and Companies' Overview

Dedic GPTI Overview

19

Dedic GPTI Overview

Company Overview

Brief Description
	§Founded in 2002, Dedic is currently one of the largest Brazilian contact center companies
		§Part of Grupo Portugal Telecom,
		§Serves clients from telecom, financials, utilities, services and other sectors
		§As of March 2010, Dedic acquired all shares issued by GPTI, one of the largest provider of Information Technology (IT) solutions and Business Process Outsourcing (BPO) in Brazil, creating DEDIC GPTI
	§GPTI: one of the largest providers of Information Technology solutions in the Brazilian market, offering a complete portfolio of solutions, which includes development of systems, network management and IT infrastructure, applications, training, business processing and IT and integrated practices (ITO and BPO).
Recent Events
	§February 8th, 2010: Portugal Telecom announced the acquisition of 100% of GPTI SA (“GPTI”), a player with a large experience in the Information Systems (IS) and Information Technology (IT) services market in Brazil. The acquisition was concluded with the issuance of new shares by Dedic, a PT subsidiary which operates in the Brazilian contact center market.
	§March 2010: Dedic assumed full control of GPTI

20

Dedic GPTI Overview

Company Overview

Board of Directors and Executives Board
§Board of Directors	§Executives Board
-Shakhaf Wine,Chairman	-Paulo Neto Leite,Chief Executive Officer
-Fábio Carlos Pereira,Vice President	-André Halm Gomes Costa,Chief Financial Officer
-Paulo Luís Neto de Carvalho Leite,Member	-Renato Bufálo,Contact Center Administrative Director
-Fabiana Faé Vicente Rodrigues,Member	-Edson Moreno, IT Administrative Director

Shareholder Structure1
Current			Post Transaction with Minority Shareholder
	Number of Shares	% of Total Capital		Number of Shares	% of Total Capital
Portugal Telecom Brasil S.A.	135,519,119	87.5%	Portugal Telecom Brasil S.A.	135,519,119	100.0%
Fabio Carlos Pereira	19,359,874	12.5%	Total	135,519,119	100.0%
Total	154,878,993	100.0%

Source: Company
1	Based on information provided by Dedic GPTI, we considered Dedic GPTI has acquired 19,359,874 shares held by Mr. Fábio Carlos Pereira for R$23 million. This total was added to the net debt as of August 31st, 2010 for Dedic GPTI valuation.

21

Dedic GPTI Overview

Financial Statements: Income Statement

	Twelve months period ended:			Eight months period ended:
Income Statement	12/31/2007	12/31/2008	12/31/2009	08/30/2010
(Values in R$ ‘000)
Gross revenue	290.715	331.353	434.315	417.404
Deductions	(21.048)	(23.506)	(32.755)	(30.532)
Net revenue	269.667	307.847	401.560	386.872
Cost of products sold / services rendered	(242.304)	(253.245)	(330.590)	(316.105)
Gross profit	27.363	54.602	70.970	70.767
Operating income / (expenses)	(29.642)	(43.593)	(57.725)	(63.569)
Selling	(4.467)	(3.046)	(2.925)	(4.223)
General and administrative	(25.175)	(40.450)	(55.504)	(59.396)
Equity interest	-	-	-	-
Other operating income / (expenses)	-	(97)	704	50
Earnings before financial result	(2.279)	11.009	13.245	7.198
Financial income	7.603	12.600	3.074	1.944
Financial expenses	(21.306)	(27.730)	(17.686)	(14.018)
Operating result	(15.982)	(4.121)	(1.367)	(4.876)
Non-operating result	(923)	-	-	-
Earnings before income tax and social contribution	(16.905)	(4.121)	(1.367)	(4.876)
Income tax and social contribution	(761)	(912)	-	(35)
Deferred income tax and social contribution	8.015	15.772	(2.106)	1.687
Net profit (loss)	(9.651)	10.739	(3.473)	(3.224)

22

Dedic GPTI Overview

Financial Statements: Consolidated Balance Sheet

	Period ended:
ASSETS	12/31/2007	12/31/2008	12/31/2009	08/31/2010
(Values in R$ ‘000)
Current assets	51.279	58.194	67.463	165.650
Cash & cash equivalents	22.654	4.524	3.169	15.746
Credits (clients)	18.003	41.819	49.628	127.768
Recoverable taxes	4.335	4.518	5.077	8.843
Deferred taxes	1.811	3.332	853	-
Prepaid expenses	25	681	2.298	8.345
Other credits	4.451	3.320	6.438	4.948
Non-current assets	23.403	39.792	46.534	49.583
Judicial deposits	1.941	4.181	6.245	8.630
Recoverable taxes	2.368	2.266	6.570	4.694
Deferred taxes	19.094	33.345	33.719	36.259
Fixed assets	49.411	88.054	112.261	271.028
Plant, properties and equipment	49.078	68.797	88.571	108.715
Intangible assets	-	19.257	23.691	162.313
Deferred assets	333	-	-	-
Total Assets	124.093	186.040	226.258	486.261

23

Dedic GPTI Overview

Financial Statements: Consolidated Balance Sheet

	Period ended:
LIABILITIES AND SHAREHOLDERS’ EQUITY	12/31/2007	12/31/2008	12/31/2009	08/31/2010
(Values in R$ ‘000)
Current liabilities	52.243	79.920	91.997	143.500
Short-term loans and financing	12.580	2.771	353	15.475
Suppliers	6.688	21.118	12.612	20.556
Taxes recoverable	2.043	3.189	4.159	7.268
Installment payment of taxes	780	981	916	2.831
Wages, provisions and social contributions	23.345	29.213	39.163	70.991
Advances from clients	-	-	-	1.513
Other liabilities	-	-	-	340
Related companies	6.807	22.648	34.794	24.526
Long-term liabilities	81.140	104.671	83.208	167.604
Long-term loans and financing	56.606	60.383	-	-
Suppliers	-	2.917	8.439	6.904
Contingencies provisions	13.459	14.423	11.899	18.913
Installment payment of taxes	5.075	4.014	4.600	9.347
Related companies	6.000	22.934	58.270	132.440
Shareholders’ Equity	(9.290)	1.449	51.053	175.157
Capital stock	87.928	87.928	141.005	262.487
Capital reserves	-	-	-	5.846
Accumulated profit / losses	(97.218)	(86.479)	(89.952)	(93.176)
Total Liabilities and Shareholders’ Equity	124.093	186.040	226.258	486.261

24

SECTION 4

General Assumptions

25

General Assumptions

Macroeconomic Assumptions

The macroeconomic assumptions reflect Banco Central’s Focus report estimates as of December 31^st2010, except otherwise indicated

Macroeconomic Assumptions	2010E	2011E	2012E	2013E	2014E	2015E	2016E	2017E	2018E	2019E	2020E
Gross Domestic Product
GDP Real Growth	7.6%	4.5%	4.5%	4.6%	4.7%	4.7%	4.7%	4.7%	4.7%	4.7%	4.7%
Inflation
IPCA	5.9%	5.4%	4.7%	4.5%	4.5%	4.5%	4.5%	4.5%	4.5%	4.5%	4.5%
IGPM	11.3%	5.7%	4.7%	4.6%	4.6%	4.3%	4.3%	4.3%	4.3%	4.3%	4.3%
U.S. Inflation (CPI)(1)	1.5%	1.0%	1.9%	2.5%	2.8%	2.8%	2.8%	2.8%	2.8%	2.8%	2.8%
FX rates
R$/US$ FX rate – Average	1.76	1.73	1.80	1.85	1.89	1.92	1.95	1.98	2.01	2.05	2.08
R$/US$ FX rate – End of period	1.67	1.75	1.82	1.86	1.90	1.93	1.96	2.00	2.03	2.06	2.10
Interest rate
Average SELIC	9.9%	12.1%	11.3%	10.5%	10.0%	9.8%	9.8%	9.8%	9.8%	9.8%	9.8%

Since Focus estimates are published for the next 5 years, following the sixth year the estimates were maintained constant at the same levels of the fifth year,

except for FX rates, which were adjusted to reflect the maintenance of the purchase power parity between Brazil and U.S. currencies

Source: Banco Central’s Focus report as of December 31st2010
Notes:
1	Source: Economist Intelligence Unit, as of December 31st2010

26

SECTION 5

Contax Valuation

27

SECTION 5.A

Contax Valuation

Discounted Cash Flow

28

General Considerations on the Valuation

BTG Pactual evaluated Contax based on the discounted cash flow to firm ("FCFF") methodology

Valuation Methodology
	§Unlevered cash flow method
	-	Projection of unlevered cash flows
	-	Cash flows are discounted by company’s weighted average cost of capital (WACC), when calculating its present value
Information Sources
	§BTG Pactual used, for the purposes of the valuation, the operating and financial projections provided and / or discussed with Contax management, in R$ nominal terms
Currency
	§Projection in R$, in nominal terms
	§The unlevered cash flow is converted yearly into US$ before it is discounted
Discounted cash flow
	§Data base: December 31st2010; cash flows are discounted to present value to December 31st2010
	§Projections horizon: 2011 to 2020
	§Assumes cash flows are generated over the year (“mid-year convention”)
	§Discounted cash flows are in US$, in nominal terms

29

Main Assumptions

BTG Pactual considered, for purposes of the calculation of the fair economic value, operating and financial estimates supplied and/or discussed with Contax management team

Macroeconomic	§Banco Central’s Focus report dated December 31st, 2010 and Economist Intelligence Unit dated December 31st, 2010
Revenue growth	§2011 growth was based in the expected growth in volume on existing clients and in new services and clients currently in Company’s commercial pipeline
	§Revenues from 2012 to 2014 were estimated based on expected market growth for each business
	§Revenues from 2015 to 2020 assume a 5.0% y.o.y. growth in nominal terms, based on Company’s estimates
Operating costs and expenses(1)	§Assumes a slight decrease in EBITDA margin in 2010 and 2011, mainly due to specific factors that generated lower productivity in operations
	§After 2012 Company expects margins recovery, given new initiatives to increase productivity in main clients
	§After 2012 Company expects stable margins, with limited efficiency gains in the long-term
Investments	§Projected based on the ammount needed to restore the assets depreciation and to meet Company’s growing need for operating infrastructure each year
	§In 2011 larger investments are expected in the replacement of a relevant technology platform and transfer of operations to the Northeast
Working capital
	§According to Company’s estimates, based on historical days receivable and payable
Terminal value	§Gordon perpetuity growth model(2), in 2020
	§Assumes perpetuity growth rate ranges from 1.5% to 2.5% in US$ nominal terms
Discount rate	§Calculated based on: (i) Contax de-levered beta, (ii) target capital structure based on discussions with Company’s management team, (iii) country risk and (iv) equity market risk premium(3)

Note:
1	Costs herein contemplated were projected without considering depreciation and amortization expenses.
2	Estimated based on the free cash flow of the last projection year, increased by the growth expectancy, using the Constant Growth Model or Gordon Model as per the equation demonstrated in Appendix C.
3	Long-term equity market risk premium estimated on historical basis. Source: 2009 Ibbotson report.

30

Operating and Financial Summary Projections

Net Revenues and Gross Profit

Net Revenues (R$ million)

CAGR (2010E-2020E): 6.6%

Gross Profit (R$ million) and Gross Margin¹

CAGR (2010E-2020E): 6.6%

 

Note:

1) Excludes depreciation and amortization expenses.

31

Operating and Financial Summary Projections

Operating Costs

Operating Costs (R$ million)

CAGR (2010E-2020E): 6.6%

Operating Costs Composition (% of Total)

 

Note: figures exclude depreciation and amortization expenses.

32

Operating and Financial Summary Projections

Operating Expenses and EBITDA

Operating Expenses (R$ million) and % of Net Revenues

EBITDA (R$ million) and EBITDA Margin

 

Note: figures exclude depreciation and amortization expenses.

33

Operating and Financial Summary Projections

Investments and Depreciation

Investments (R$ million)

Depreciation and Amortization (R$ million)

 

34

Valuation

Discounted Cash Flow

Free Cash Flow to Firm (R$ million, except otherwise indicated)

	2011E	2012E	2013E	2014E	2015E	2016E	2017E	2018E	2019E	2020E	Perpetuity
Earnings before interest and taxes (EBIT)	236	290	301	310	308	307	312	369	411	427	427
(-) Taxes	(80)	(99)	(102)	(105)	(105)	(104)	(106)	(126)	(140)	(145)	(145)
Net operating profit after taxes (NOPAT)	156	191	199	205	204	203	206	244	271	282	282
(+) Depreciation and amortization	105	122	146	170	196	223	245	215	202	217	217
(+/-) Working capital variation	18	18	18	17	12	13	14	14	15	16	16
(-) Investments	(313)	(126)	(177)	(186)	(193)	(199)	(205)	(211)	(221)	(232)	(232)
Free cash flow to firm (R$ mm)	(34)	206	185	206	219	240	259	262	267	282	282
Free cash flow to firm (US$ mm)	(20)	114	100	109	114	123	131	130	131	136	136

Fair Economic Value based on the Discounted Cash Flow to Firm Methodology

The fair economic value range of Contax shares calculated based on the discounted cash flow methodology, as of 12/31/2010, is from R$37.64 to R$40.30 per ON share and from R$37.59 to R$40.24 per PN share⁽¹⁾

Perpetuity growth rate (US$ nominal terms)	1.50%	1.75%	2.00%	2.25%	2.50%
WACC (US$ nominal terms)	10.0%	10.0%	10.0%	10.0%	10.0%
Enterprise value (R$ million)	$2,143	$2,179	$2,217	$2,258	$2,301
(-) (Net debt) net cash (R$ million)	$90	$90	$90	$90	$90
Equity value (R$ million)	$2,233	$2,269	$2,307	$2,347	$2,390
Number of ON shares (million)	22.7	22.7	22.7	22.7	22.7
Price per ON share (R$ / share)	$37.64	$38.24	$38.88	$39.57	$40.30
Number of PN shares (million)	36.7	36.7	36.7	36.7	36.7
Price per PN share (R$ / share)	$37.59	$38.20	$38.84	$39.52	$40.24
Ratio ON / PN share price(2)	1.001	1.001	1.001	1.001	1.001

Source: Company, financial statements as of 09/30/2010 and BTG Pactual
1	Assumes a range in perpetuity growth rate from 1.5% to 2.5% in US$ nominal terms
2	Assumes a ON/PN ratio based on the average spread of ON / PN shares, based on the VWAP during the 60 days prior to December 31st, 2010.

35

SECTION 5.B

Contax Valuation

Comparable Companies Trading Multiples

36

Comparable Companies Trading Multiples

The value of Contax share price ranges from R$39.93 to R$47.54 per share, based on comparable companies 2011 and 2012 EV/EBITDA trading multiples

Fair economic value based on the comparable companies trading multiples method
(R$ million, except price per share)
	2011E	2012E
EBITDA	341.1	412.0
EV/EBITDA Multiple(1)	6.7x	6.6x
Enterprise value	2,280.7	2,732.8
(-) (Net debt) net cash(2)	89.7	89.7
Equity value	2,370.5	2,822.5
Number of shares (million)(3)	59.4	59.4
R$/share	39.93	47.54

Source: Company and BTG Pactual
Note:
1	Considers the median of trading multiples of comparable companies as of December 31st2010. Details on the calculation of negotiation multiples is detailed in Appendix B - Comparable Companies Trading Multiples, page 60 of this report. Source: Factset.
2	As of September 30th2010.
3	Excludes treasury shares.

37

SECTION 5.C

Contax Valuation

Accounting Book Value

38

Accounting Book Value

Contax value is R$6.88 per share, based on its accounting book value

Book Value
As of September 30th2010
(R$ million, except otherwise indicated)
Total assets	1,290.9
(-) Total liabilities	880.8
(-) Minority interest	1.8
= Shareholders’ equity	408.3
Number of shares (million)(1)	59.4
R$/share	6.88

Source: CVM and Company.
Note:
1	Excludes treasury shares

39

SECTION 5.D

Contax Valuation

Volume Weighted Average Price

40

Volume Weighted Average Price

Price evolution of Contax shares negotiated in the BOVESPA

(Price in R$ per share and volume in R$ million)

ON Shares (CTAX3)	PN Shares (CTAX4)

 

Source: CVM and Economática, as of Decemeber 31^st2010. Prices are adjusted for dividends and corporate events.

Note: number of shares excludes treasury shares.

41

Volume Weighted Average Price

Volume weighted average price of Contax shares negotiated in the BOVESPA

(R$, except otherwise indicated)

	ON Shares	PN Shares	Total Shares
12 months prior to 12-31-10 (included)
VWAP	29.594	25.292
Number of shares (million)	22.7	36.7	59.4
Market value (R$ million)	671.4	927.7	1,599.1
6 months prior to 12-31-10 (included)
VWAP	31.042	26.607
Number of shares (million)	22.7	36.7	59.4
Market value (R$ million)	704.3	976.0	1,680.2
3 months prior to 12-31-10 (included)
VWAP	31.164	29.817
Number of shares (million)	22.7	36.7	59.4
Market value (R$ million)	707.1	1,093.7	1,800.8
2 months prior to 12-31-10 (included)
VWAP	31.036	30.997
Number of shares (million)	22.7	36.7	59.4
Market value (R$ million)	704.1	1,137.0	1,841.1
1 month prior to 12-31-10 (included)
VWAP	30.663	31.136
Number of shares (million)	22.7	36.7	59.4
Market value (R$ million)	695.7	1,142.1	1,837.8

Source:	CVM and Economática, as of December 31st2010. Prices are adjusted for dividends and corporate events.
Note:
(1)	Number of shares excludes treasury shares
(2)	VWAP of ON and PN shares, calculated based on the market value divided by total shares

42

SECTION 6

Dedic GPTI Valuation

43

SECTION 6.A

Dedic GPTI Valuation

Discounted Cash Flow

44

General Considerations on the Valuation

BTG Pactual evaluated Dedic GPTI based on the discounted cash flow to firm ("FCFF") methodology

Valuation Methodology
	§Unlevered cash flow method
	-	Projection of unlevered cash flows
	-	Cash flows are discounted by company’s weighted average cost of capital (WACC), when calculating its present value
Information Sources
	§BTG Pactual used, for the purposes of the valuation, the operating and financial projections provided and / or discussed with companies’ management teams, in R$ nominal terms
Currency
	§Projection in R$, in nominal terms
	§The unlevered cash flow is converted yearly into US$ before it is discounted
Discounted cash flow
	§Data base: December 31st2010; cash flows are discounted to present value to December 31st2010
	§Projections horizon: 2011 to 2020
	§Assumes cash flows are generated over the year (“mid-year convention”)
	§Discounted cash flows are in US$, in nominal terms

45

Main Assumptions

BTG Pactual considered, for purposes of the calculation of the fair economic value, operating and financial estimates supplied and/or discussed with Dedic GPTI management teams

Macroeconomic	§Banco Central’s Focus report dated December 31st, 2010 and Economist Intelligence Unit dated December 31st, 2010
Revenue growth	§Dedic:
		§Projections based on Company’s pipeline for 2011 and market growth for 2012, 2013 and 2014
		§Revenues from 2015 to 2020 assume 5% y.o.y. growth rate in nominal terms
		§Revenue / Service Station (“PA”) grows according to inflation y.o.y.
		§Assumes an important contract cancellation at the end of 2012
	§GPTI:
		§Projections based on Company’s pipeline, market growth and growth with cross-selling of products
Operating costs and expenses(1)	§Dedic:
		§Gross margin gains deriving from higher operating efficiency and consequently reduction of the average number of employees per service station (PA)
		§Higher operating efficiency throughout the projection period
	§GPTI:
		§Gross margin evolution according to efficiency gains and change in mix
		§Gains with dilution of operating expenses
Investments	§Dedic: expansion investments realized one year in advance (R$20.6 thousand per new PA) and maintenance investments based on the number of PAs in the previous year (R$3.2 thousand per existing PA)
	§GPTI: investments projected based on the needs per service line
Working capital	§According to Company’s estimates, based on historical days receivable and payable for both Dedic and GPTI
Terminal value	§Gordon perpetuity growth model(2), in 2020
	§Assumes perpetuity growth rate ranges from 1.5% to 2.5% in US$ nominal terms
Discount rate	§Calculated based on: (i) Dedic GPTI de-levered beta, (ii) target capital structure based on discussions with Companies’ management teams, (iii) country risk and (iv) equity market risk premium(3)

Note:
1	Costs herein contemplated were projected without considering depreciation and amortization expenses.
2	Estimated based on the free cash flow of the last projection year, increased by the growth expectancy, using the Constant Growth Model or Gordon Model as per the equation demonstrated in Appendix C.
3	Long-term equity market risk premium estimated on historical basis. Source: 2009 Ibbotson report.

46

Operating and Financial Summary Projections

Revenue and Costs

Net Revenue (R$ million)

Operating Costs (R$ million)¹

 

Note: assumes an important contract cancellation at the end of 2012.

1) Excludes depreciation and amortization expenses.

47

Operating and Financial Summary Projections

Gross Profit and Gross Margin

Gross Profit (R$ million)

Gross Margin (% of Net Revenue)

 

Note: assumes an important contract cancellation at the end of 2012.

Figures exclude depreciation and amortization expenses.

48

Operating and Financial Summary Projections

Operating Expenses and % of Net Revenue

Operating Expenses (R$ million)

 

Operating Expenses (% of Net Revenue)

 

Note: assumes an important contract cancellation at the end of 2012.

Figures exclude depreciation and amortization expenses.

49

Operating and Financial Summary Projections

EBITDA and EBITDA Margin

EBITDA (R$ million)

EBITDA Margin

 

Note: assumes an important contract cancellation at the end of 2012.

50

Operating and Financial Summary Projections

Investments and Depreciation

Investments (R$ million)

Depreciation and Amortization⁽¹⁾(R$ million)

 

Note: assumes an important contract cancellation at the end of 2012.
1	Considers the amortization of the goodwill from GPTI acquisition in 5 years.

51

Valuation

Discounted Cash Flow

	2011E	2012E	2013E	2014E	2015E	2016E	2017E	2018E	2019E	2020E	Perpetuity
Earnings before interest and taxes (EBIT)	26	2(1)	12	25	42	69	71	76	83	91	91
(-) Taxes	(9)	(7)	(8)	(9)	(14)	(23)	(24)	(26)	(28)	(31)	(31)
Net operating profit after taxes (NOPAT)	17	(5)	4	16	27	46	47	50	55	60	60
(+) Depreciation and amortization	59	65	59	59	49	29	34	36	37	37	37
(+/-) Working capital variation	(24)	(11)	18	(12)	(6)	(6)	(7)	(7)	(7)	(8)	(8)
(-) Investments	(35)	(14)(2)	(41)	(30)	(34)	(36)	(38)	(40)	(42)	(44)	(44)
Free cash flow to firm (R$ mm)	17	34	41	32	37	32	36	40	43	46	46
Free cash flow to firm (US$ mm)	10	19	22	17	19	16	18	20	21	22	22
Fair Economic Value based on the Discounted Cash Flow to Firm Methodology
The fair economic value of Dedic GPTI shares calculated based on the discounted cash flow methodology, as of 12/31/2010 ranges from R$1.38 to R$1.57 per share(3)
Perpetuity growth rate (US$ nominal terms)	1.50%			1.75%		2.00%		2.25%			2.50%
WACC (US$ nominal terms)	10.0%			10.0%		10.0%		10.0%			10.0%
Enterprise value (R$ million)	$371			$377		$383		$390			$397
(-) (Net debt) net cash (R$ million)(4)	($184)			($184)		($184)		($184)			($184)
Equity value (R$ million)	$187			$193		$199		$206			$213
Number of shares (million)	135.5			135.5		135.5		135.5			135.5
Price per share (R$ / share)	$1.38			$1.42		$1.47		$1.52			$1.57

Source: Company, financial statements as of 08/30/2010 and BTG Pactual. Note: assumes an important contract cancellation at the end of 2012.
1	Considers approximately R$29 million in non-recurring expenses with cancellation costs of an important contract at the end of 2012.
2	Considers approximately R$29 milllion of asset sale (at cost) as a result of the cancellation of an important contrat at the end of 2012.
3	Assumes a range in perpetuity growth rate from 1.5% to 2.5% in US$ nominal terms.
4	As of August 31st2010, plus R$23 milllion as per note below.
5	Based on information provided by Dedic GPTI, we considered Dedic GPTI has acquired 19,359,874 shares held by Mr. Fábio Carlos Pereira for R$23 million. This total was added to the net debt as of August 31st, 2010 for Dedic GPTI valuation.

52

SECTION 6.B

Dedic GPTI Valuation

Comparable Companies Trading Multiples

53

Comparable Companies Trading Multiples

The value of Dedic GPTI share price ranges from R$2.82 to R$3.34 per share, based on comparable companies 2011 and 2012 EV/EBITDA trading multiples

Fair economic value based on the comparable companies trading multiples method
(R$ million, except price per share)
	2011E	2012E
EBITDA	84.7	95.9
EV/EBITDA Multiple(1)	6.7x	6.6x
Enterprise value	566.6	636.3
(-) (Net debt) net cash(2)	(183.9)	(183.9)
Equity value	382.7	452.4
Number of shares (million)	135.5	135.5
R$/share	2.82	3.34

Source: Company and BTG Pactual
1	Considers the median of trading multiples of comparable companies as of December 31st2010. Details on the calculation of negotiation multiples is detailed in Appendix B - Comparable Companies Trading Multiples, page 60 of this report. Source: Factset.
2	As of August 31st2010, plus R$23 milllion as per note below.
3	Based on information provided by Dedic GPTI, we considered Dedic GPTI has acquired 19,359,874 shares held by Mr. Fábio Carlos Pereira for R$23 million. This total was added to the net debt as of August 31st, 2010 for Dedic GPTI valuation.

54

SECTION 6.C

Dedic GPTI Valuation

Accounting Book Value

55

Accounting Book Value

Contax value is R$6.88 per share, based on its accounting book value

Book Value
As of September 30th2010
(R$ million, except otherwise indicated)
Total assets	1,290.9
(-) Total liabilities	880.8
(-) Minority interest	1.8
= Shareholders’ equity	408.3
Number of shares (million)(1)	59.4
R$/share	6.88

Source: CVM and Company.
Note:
1	Excludes treasury shares

56

Accounting Book Value

Dedic GPTI value is R$1.13 per share, based on its accounting book value

Book Value
As of August 31st2010
(R$ million, except otherwise indicated)
Total assets	486.3
(-) Total liabilities	311.1
(-) Minority interest	0.0
= Shareholders’ equity	175.2
Number of shares (million)	154.9
R$/share	1.13

Source: Company.
Note
1	.	Book value as of August 31st2010, before the transaction between the Company and Mr. Fábio Carlos Pereira

57

APPENDIX A

Companies' Weighted Average Cost of Capital (WACC)

58

Companies' Weighted Average Cost of Capital (WACC)
Beta Analysis
Companies in the Sector	Price per Share (Local Currency)	# of Shares  (million)	Market Value (Local Cy million)	Net Debt (Local Cy million)	Debt/ Market Value (%)	Tax Rate (%)	Leverage Factor(1)	Leveraged Beta(2)	Unlevered Beta(3)
Contax Participacoes Sa	32.0	59.4	1,899.2	(91.7)	0.0%	34.0%	1.00	0.43	0.43
Teleperformance	25.6	56.5	1,448.4	(40.8)	0.0%	33.3%	1.00	0.63	0.63
Convergys Corporation	13.8	121.8	1,675.2	36.9	2.2%	40.0%	1.01	1.35	1.33
Sykes Enterprises, Incorporated	19.9	46.9	931.9	(206.1)	0.0%	40.0%	1.00	0.98	0.98
TeleTech Holdings Inc.	20.7	59.1	1,224.9	(156.8)	0.0%	40.0%	1.00	0.95	0.95
Telegate AG	7.6	21.2	161.4	(57.9)	0.0%	29.4%	1.00	0.47	0.47
TIVIT Terceirização de Tecnologia e Serviços S/A	19.2	89.0	1,708.6	120.5	7.1%	34.0%	1.05	0.47	0.45
Average									0.75

Weighted Average Cost of Capital (WACC)
Cost of Equity - Ke (US$ in nominal terms)		Weighted Average Cost of Capital (WACC, US$ in nominal terms)
U.S. risk free rate (Rf)(4)	3.2%	Pre tax cost of debt (US$ in nominal terms)	10.0%
Country risk premium(5)	2.0%	Post tax cost of debt (US$ in nominal terms)	6.6%
Risk premium expected for the equity market (PRm)(6)	6.5%
Unlevered beta	0.75	Target Debt / (Debt + Equity)	30.0%
Tax rate	34.0%	Target Equity / (Debt + Equity)	70.0%
Targe capital structure (Debt / Equity)	30.0%
Leveraging factor	1.28	Weighted Average Cost of Capital (WACC, US$ in nominal terms)(9)	10.0%
“Re-levered“ beta(7)	0.96
Cost of Equity - Ke (US$ in nominal terms)(8)	11.5%

Source: Bloomberg and Capital IQ as of December 31st2010.
Notes:
1	Leveraging factor = (1+((1- marginal tax rate) * % debt / equity).
2	Levered beta: result from regression analysis based on share price and the benchmark index in the last 104 weeks. Source: Capital IQ.
3	Unlevered beta = Levered beta / Leveraging factor.
4	U.S. risk free rate is calculated based on teh average return of U.S. 10-year treasury bond over the last 12 months ended December 31st2010.
5	Country risk premium (CPR) calculated based in the average of EMBI+ Brasil in the last 12 months ended December 31st2010.
6	Long term equity market risk premium estimated based on historial data. Source: 2009 Ibbotson report.
7	“Re-levered” beta: (Unlevered Beta * Leveraging factor).
8	Cost of equity (Ke) = U.S. risk free rate + “re-levered” beta * (equity market risk premium) + country risk premium.
9	Weighted average cost of capital (WACC) = post tax cost of debt * [debt /(debt + equity)] + cost of equity * [equity / (debt + equity)].

59

APPENDIX B

Comparable Companies Trading Multiples

60

Comparable Companies Trading Multiples

				EV / EBITDA
In USD million, except price per share	Price per Share (US$)	Market Value	Enterprise Value	2011E	2012E
Convergys Corp.	13.75	1,675.2	1,903.7	6.5x	6.0x
Sykes Enterprises Inc.	19.89	931.9	728.5	5.6x	7.0x
Teletech Holdings Inc.	20.72	1,224.9	1,071.1	6.8x	6.6x
Tivit Terceirizacao de Processos Servicos e Tecnologia S/A	11.43	1,016.9	1,088.0	7.0x	n.d.
			Average	6.5x	6.5x
			Median	6.7x	6.6x

Source: Factset, as of December 31^st2010. Estimates based on market consensus

61

Description of the Comparable Companies

To evaluate the companies based on comparable companies trading multiples, it was used as reference Brazilian andinternational comparable companies

Convergys Corp.
•	North American company focusedon payables outsourcing and services and solutions management.
Sykes Enterprises Inc
•	North American company focused on IT outsourcing
TeleTech Holdings Inc
•	TeleTech offers outsourcing services around the World. The company operates mainly in two segments: (i) client management; and (ii) Marketing
•	Database Marketing and Consultancy
Tivit
•	Tivit is one of the first Brazilian companies to offer integrated services of IT, Systems and BPO -Business Process Outsourcing

62

APPENDIX C

Description of Valuation Methodologies

63

Valuation Model Structure

Method for the construction of the Free Cash Flow to Firm (FCFF)

64

WACC Calculation

WACC wascalculatedwith thecombinationof cost of equity (K_e) and cost of debt (K_d)estimatedfor thecompanyunderanalysis, consideringa target capitalstructure

• K_ewas estimated by the evaluator based on the CAPM - Capital Asset Pricing Model, adjusted for country’s risk
• K_dwas estimated by the evaluator considering the credit risk and debt capital markets current dynamics

65

Constant Growth Model or Gordon Model

The Constant Growth Model or Gordon Model was used when calculating the perpetuity

			• FCF(n):	Free cash flow in the last projected year
		FCF(n) x (1+g) WACC - g
Perpetuity	=		• “g”:	Constant perpetuity growth rate of cash flows during the period after projections
			• WACC:	Weighted average cost of capital using company’s target capital structure

66

Comparable Companies Trading Multiples

Assesses the company’s value based on market multiples of other publicly traded companies with similar financial andoperating characteristics

Once the universe ofcomparable companies is selected, company’s implied firm and equity values are calculated by multiplying its metrics (eg net income, EBITDA) by the respective multiples of the universe of comparables
The value of comparable companies typically do not incorporate control premiums reflected in mergers and acquisitions transactions involving comparable companies
The key element in the comparable companies analysis is to identify the comparability and relevance
	A good comparable is the one thathas operating and financial characteristics similar to the company under evaluation
	Examples of operating characteristics: industry expertise, products, markets, customers, seasonality and cyclicality
	Examples of financial characteristics: size, leverage, shareholder base, growth and margins

67

APPENDIX D

Terms and Definitions Used in the Valuation Report

68

Terms and Definitions Used in the Valuation Report

• Beta:index that measures the non-diversifiable risk of a stock. Beta measures the relationship between the return of a stock and the marketreturn. Thus, the risk premium will always be multiplied by this coefficient, demanding a higher premium for risk the higher is the change in stockprices versus market return
• Call center / contact center:service centers designed to connect with consumers in an active (connection made from the company to thecustomer) or receptive (from the client to the company), using telephone or other communication channels. Contact center is the broader term,which includes contact by email, fax, chat and voice over IP, for example.
• Capex:capital expenditures, or maintenance and/or capacity expansion investments
• CAPM:capital asset pricing model
• EBIT:earnings before interest and taxes
• EBITDA:earnings before interest, taxes, depreciation and amortization
• FCFF:free cash flow to firm
• LTM:last twelve months
• NOPAT:net operating profit after taxes
• PA:position or service station. It consists of the physical installation (desk, computer, telephones, etc.) used by call center operators.
• Spread:price ratio among two different stocks.
• VWAP:volume weighted average price
• WACC:weighted average cost of capital

69

APPENDIX E

Additional Statements and Information

70

Additional Statements and Information

ThisValuationReport waspreparedby Banco BTG Pactual S.A. under thesolicitationof ContaxParticipaçõesS.A.(“Contax”),in the context of aincorporationof the total shares issued by Mobitel S.A. (“Dedic GPTI”) by Contax(“Transaction”),for which BTG Pactual was hired toevaluatethe shares of Contax and Dedic GPTI,accordingto the Law 6.404, ofDecember15, 1976 andInstructionCVM 319, ofDecember3, 1999.

The BTG Pactual states that theinformation presentedherein are updated in relation to the limit date of January 25^th2011.

The BTG Pactualhighlightsthat its services does not includeadvisementof any nature, such as Legal orAccounting.The content of this material is not and shall not beconsidereda promise or aguaranteein relation to the past or future, neither beconsidereda pricerecommendationfor theTransaction.

The BTG Pactualhighlightsthat theValuationof thecompanieswas made in asegregatedmanner,disregardingpossible impacts related to theTransaction,anddisregardingpossiblesynergies positivesornegativescreated by thecombinationwith Contax.

Theinformation obtainedby BTG Pactual from public sources or from sources that to the best of BTGPactual’s knowledgewasconsidered trustable,has beenincludingfinancialstatementsmadeavailableonSeptember30^th, 2010regardingContax and August 31^st, 2010regardingDedic GPTI, which was audited by theindependentauditors of theCompanies.Delloitte ToucheTohmatsuin both cases. The BTG Pactual hasobtained informationfrom public sources which wasconsidered trustable, howeverthe BTG Pactual didn’t make anindependent verificationof suchinformationand ofinformation receivedfrom theCompaniesor from the third-parties hired by theCompanies,eitherassumes responsibilitiesfor theprecision, accuracyorcompletenessof suchinformation.

TheCompanies,throughprofessionals designated,has madeavailable informationrelated to data,projections, assumptionsand forecast related to theCompaniesand to markets on which theCompanywasoperatingused in thisValuationReport. Thecompanieswill bereferencedin thisValuationReport jointly as“Information Suppliers”

The BTG Pactual has based its analysis in theinformation mentionedabove and ondiscussionswith theprofessionalsof theCompaniesand otherrepresentativesof theCompanies,and the BTG Pactual didn’t verifiedindependentlyanyinformationpubliclyavailableorfurnishedto BTG Pactual in thepreparationof thisValuationReport. The BTG Pactual does not express any opinion about thereliabilityof theinformation mentionedandhighlightsthat any errors orchangesof thatinformationcould affectsignificantlythe BTGPactual’s analyses.

During thedevelopmentof our work, we runanalyses procedureswhen it wasnecessary. However,wehighlightthat our work ofValuationdidn’t intend to be an audit of financialstatementsor of any otherinformation furnishedby theInformation Suppliers,and it cannot beconsideredsuch as. Our work took into account therelevanceof each item, so, theInformation Suppliershasassumedfullyresponsibilityfor theinformation furnishedto BTG Pactual.

In thepreparationof the presentValuationReport, the BTG Pactual has adopted asassumption,with express consent of theInformation Suppliers,thereliability,accuracy, veracity, completeness, sufficiencyand integrity of all data which wasfurnishedourdiscussed,so BTG Pactual does notassumes,neither has realized any physicalinspectionof any asset orproperty,and has not made anyindependently valuationof the asset and debt of theCompanies,or about theCompanies solvency, consideringasconsistenttheinformationused in theValuationReport, theInformation Suppliershas taken theresponsibility, includingfor itsemployees,partners andrepresentatives,foreverythingwhich wasfurnishedordiscussedwith BTG Pactual.

71

Additional Statements and Information

Theinformationrelated to data,forecast, assumptionsandestimates,related to theCompaniesand itsmarkets,used orincludedin thisValuationReport, has been based in certain groups of report andpresentationlayout which can beconsiderablydifferent from the group ofaccounts presentedby theCompaniesin thepreparationof its financialstatements.Thisprocedurewas adopted in order to permit that the forecastpresentedwasconsistentwith the group of accountreportedin themanagementfinancialstatements furnished. Occasional Differencesin group of account does not have impact over the results

All theinformation, estimatesand forecast hereinincludedare those used andpresentedby theInformation Suppliers, adjustedby BTG Pactual, at its solediscretion,related toreasonableness,and areassumedas being based in bestvaluationofInformation Suppliersand of itsadministrationin relation to theevolutionof theCompaniesand its markets ofoperation.

Except ifotherwise expressly presented,asindicatedin writing in specific notes orreferences,all data,previous information,marketinformation, forecast, projectionandassumptions, included, considered,used orpresentedin thisValuationReport are thosepresentedby theInformation Suppliersto BTG Pactual.

Theinformationhereincontained,related to theaccountantposition and financial position of theCompaniesand the Market, are thoseavailableon January 25^th, 2011. Anychangesin thosepositionscan affect the results of thisValuationReport. The BTG Pactual does not assume anyobligationofupdating, reviewingoramendingthisValuationReport, as result ofdisclosureof anysubsequent informationin relation to January 25^th, 2011 or as result of any othersubsequentevent.

There is noguaranteethat theassumptions, estimates, forecast,partial or total results orconclusionused orpresentedin thisValuationReport will beeffectivelyreached or verified, in part or in whole. The future results of theCompaniescan be different from the resultsincludedin theforecast,and those results can besignificant,as result of several factors,including,but not limited to,changesin the marketconditions.The BTG Pactual does not assume anyresponsibilityrelated to suchdifferences.

ThisValuationReport wasgenerated accordingto theeconomicand marketconditions,among others,availablein da date of itselaboration,so theconclusion presentedare subject tovariationsof several factors on which the BTG Pactual does not have any control.

The sum ofindividualsvaluespresentedin theValuationReport can be different from the sumpresenteddue toroundingof values.

To perform the work, the BTG Pactual adopted asassumptionthat all thegovernmental, regulatory approvals,or other of any nature, andexemption, amendmentsorrenegotiationof anyagreement necessaryto theTransactionwas or will beobtained,and nomodification necessaryto those acts will cause any adversepatrimonialimpact to theCompaniesor reduce those the benefits targeted by theTransaction.

ThisValuationReport waspreparedinaccordanceto the Law 6404,December15, 1976, and to theInstructionCVM 319,December3, 1999,howeverit does not intends to be the only base toevaluatetheCompanies, therefore,theValuationReport does not contain all theinformation necessaryfor such andconsequently,does notrepresent,neitherconstitutesaproposal, solicitation, suggestionorrecommendationby BTG Pactual.

Theshareholdersshall make its ownanalysesin relation to theconvenienceand to theopportunityofapprovingtheTransaction,and shall consult its ownfinancial,tax and legaladvisorsbefore take its own decision about thetransaction,in aindependentlymanner. TheValuationReport shall be read andinterpreted accordingto therestrictionsandqualificationspriormentioned.The reader shall take into account therestrictionsandcharacterof theinformationused.

72

Additional Statements and Information

ThisValuationReport cannot becirculated,copied,publishedor used in any form, neither can bearchived,include orreferenced,in whole or in part, in anydocument,without apreviousconsent of BTG Pactual, the use of theValuationReport isrestrictedto useddescribedin theInstructionCVM 379/99

Valuationsreport of theCompaniesand sectorselaboratedby othercompany,due to itsautonomy,canconsiderdifferentassumptionsin different manner that was used in thisValuationReport andconsequently,present resultssignificantly different.

73

Banco BTGPactualS.A.
Av.BrigadeiroFaria Lima, 3729 9^thfloor
São Paulo, SP – Brazil
Zip Code: 04538-133
Tel: +55 11 3383-2000

74

EXHIBIT IV
TOTHE 

MANAGEMENT PROPOSAL 

PROPOSED WORKOF THE EVALUATORS 

-4 - 

 

CONFIDENTIAL 

SãoPaulo, January 4,2011. 

To

CONTAX PARTICIPAÇÕES S.A.Attn: Mr. Michel Neves Sarkis Subject: Financial Advisory ProposalDear Sirs, 

Following our recent conversations, Banco BTG Pactual S.A. (hereinafter referred to as “BTG 

Pactual”) is honored to provide Contax Participações S.A. (“Company” or “Contax”) with this 

financial advisory proposal to prepare an economicand financial valuation of Mobitel S.A. (“Dedic”) 

within thescope of the merger ofDedic intoContax (“Transaction”). 

This proposal is divided into four sections. In the first section we briefly describe the serviceswe propose to provide within the scope of this instrument, and subsequently we suggest a remuneration tobe paid to BTG Pactual in case this proposal is accepted.In the third section of this proposal, we present the terms and conditions that shall govern the relationship betweenBTG Pactual and theCompany  within  the  scope  of  this proposal,  should  it  be  accepted, and  finally,  we  present a conclusion in thefourth section. 

1 SERVICES TO BEPROVIDED BY BTG PACTUAL 

BTG Pactual agrees to prepare a valuation report within the scope ofthis proposal, so as to identify, inan unbiased and trustworthy manner, the economic value of Dedic and of the Company, from afinancial perspective, as well as to describe the economic, operational and financial characteristics of Dedicand of the Company, within the scope of theTransaction (“Valuation Report”). For that purpose, BTG Pactual may use methodologies, such as: (i) present value discount of the anticipated cash flow, using operational premises provided byDedic and by the Company; (ii) multiples analyses ofcompanies traded in net markets, such as stock exchange market valuewith regard to sales, profit, operating cash flow, EBITDA, among others; and (iii) transactions involving the purchase and sale of similar companies inBrazil andabroad. The structure, scope and reach of theValuationReport, aswell as its extent, form, substance and presentation, shall be those usually adopted by class Afinancial institutions, and they shall observe the regulations currently in force (including the regulations issued by the Brazilian Securities Commission —CVM). 

2.REMUNERATION TOBE PAID TO BTG PACTUAL FOR THE VALUATION REPORT 

For preparation of the Valuation Report, BTG Pactual suggests theCompany to pay a fixed remuneration(“Fixed Remuneration”) in the amount of one hundred thousand reais(R$100,000.00),which shall be paidwithin up tofive (5) business days after delivery of the Valuation Report. 

According to themarket practices, the remuneration hereby suggested shall be paid inBrazil, in Reais, 

 

free from any taxes or fees, such as Social Integration Program, or PIS, Social-Security Contribution, orCOFINS, and  Municipal  Services Tax,  or  ISS.  Therefore, the  Company  agrees to  pay  theadditional amounts requiredfor BTG Pactual to receive an amount equivalent to the amount thatwould have been received if the deductions or payments were not required(gross up). 

2.1. Expenses 

Regardless ofthe completion of the Transaction, thenormal, regular and reasonable expenses incurred with preparation and performance of the Valuation Report, including, without limitation to, travel, transportation and lodging expenses and other expenses requiredfor the provision of theservices hereby proposed and which are proved to be incurred by BTG Pactual shall be paid by theCompany. These expenses shall be reimbursed within up to five (5) days after the date of receipt of thereimbursement request. 

3.GENERAL ASPECTS 

3.1. Termination 

After acceptance of this proposal, the provisions hereof shall be effective and binding upon the parties for a term of twelve (12) months as from the date hereof, it being understood thatthis instrument may be terminated byany of the parties by means of written notice served at least thirty (30)days inadvance, without any obligation orlien to BTG Pactual and theCompany, except for: 

(a)immediate reimbursement by the Company of possible expenses andgeneral costs proved tohave been actually incurred by BTG Pactual during provision of the services hereby proposed to the date oftermination or rescission; 

(b)payment bythe Company of a portion of the Fixed Remuneration, ina proportion compatiblewith the works performed by BTG Pactual until the date oftermination or rescission; and 

(a)maintenance of the validity and binding character of the obligations established in3.1.Termination, 3.2. Confidentiality, 3.3. Damages and 3.5 Jurisdiction, after the end of the term of effectiveness hereof, for the periods established in thesesubsections. 

3.2.Confidentiality 

The Company acknowledges thatthe Valuation Report shall be used for the sole purpose of implementing the Transaction and may only be provided to third parties within the scope of theTransaction and strictly in accordance with the provisions of the applicable law. The Companyfurther acknowledges that only the final version of the Valuation Report, as identified by BTGPactual in writing, may be used for purposes of the Transaction. All other documents, opinions,suggestions, recommendations, projections, rough  copies  and  drafts  prepared  or  sent  by  BTGPactual to the Company within the scope of the provision of services hereby proposed shall be limited to the representatives ofthe Company and may not be provided to third parties without the prior and express consent of BTG Pactual. None ofthe parties may provide confidential information towhich it may be granted access within thescope of the provision of theservices hereby contracted tothird parties without the prior written consent ofthe other party, being liable for the breach ofsecrecyand use of such information outside the scope of this work and in accordance with the provisions of the applicable Brazilian law, except if: (a) provision of such information is required by 

 

theapplicable law, regulation or administrative, governmental or court order,or (b) such information isprovided to its representatives, counsel, accountants orother individuals or legal entities directly involved in the development of the Transaction, always in the ordinary course of business, provided thatthese persons are aware of the confidential character of such information and agree to grant it confidential treatment by means of the execution of a confidentiality agreement. 

The obligation assumed in the preceding paragraph shall be valid for a term of twenty-four (24) 

months as from the date hereof. 

After completion of the Transaction, BTG Pactual may disclose such fact to third parties, as well as todescribe the servicesprovided within the scope of the Transaction by means of, among others, publication of advertisement innewspapers of general circulation and on the BTG Pactual internet page, as well as by including this fact in rankings of mergers andacquisitions. 

3.3.Damages 

The Company agrees that BTG Pactual shall not be liable to the Company or to any other personwith regard to matters thatin any way relate or refer to this proposal, to the Valuation Report or to the Transaction, subject to  the  provisions below, and,  in  thisregard,  should  BTG Pactual be involved, in any form or circumstance, inany claim, complaint, proceeding, action, litigation,arbitration proceedings, investigation orinquiry (“Litigation”) with regard to matters that in any way relate or refer to this proposal, to the Valuation Report or to the Transaction, or which result from thesubject matter hereof, including,without limitation to, services and activities relating to this proposal that were provided or occurred before the date of this proposal, the Company agrees to indemnify, defendand hold BTG Pactual harmless, to the broadest extent permitted bylaw, againstany loss, claim, damage, liability and expense with regard to any Litigation, except if a final and unappeallabe  order  is  issued  by  the  competent authorities  declaring  that  these  losses,  claims, damages, liabilities and expenses have exclusively resulted from the negligence or malice of BTGPactual. The Company shall reimburse BTG Pactual for any and all expenses, including legal, court orextrajudicial expenses, as well as other expenses, such as any possible investigation cost, incurred byBTG Pactual in connectionwith the provisions above. The obligations relating to damages contemplated herein shall remain in effect even after delivery ofthe Valuation Report or termination orextinguishment hereof. 

The Company shall notsettle any claim relating to aLitigation where damages may be owed, whetherBTG Pactual is a party or potentially aparty to such Litigation,without the prior written consent ofBTG Pactual (which consentshall not be unreasonably withheld, in case the Litigation involves only thepayment of damages in Brazilian currency), except if such settlement isconfidential and (i) includes an unconditional release ofBTG Pactual from all liabilities inany way relating to or resultingfrom such Litigation, and (ii)does not includeany confession of noncompliance, culpability orfailure toact by or with regard to BTG Pactual, or an adverse statement on the reputation orconduct ofBTG Pactual. 

The Company agrees thatBTG Pactual shall not be liable to the Company or to any other person in case it exercisesany right or claim to the benefit of the Company or with regard to a right of theCompany, which relates to or results from the engagement ofBTG Pactual or to any other matter referred to in this proposal, including, without limitation to, related servicesand activities that were provided or whichhave occurred before the date of this proposal, except if a final and unappeallabe order is issued by the competent authorities declaring that any loss, claim, damage, liability or 

 

expense incurred by the Company have exclusively resulted from gross negligence or malice of BTGPactual during performance of theservices contemplated herein. 

The term “BTG Pactual”, as contemplated herein, includes Banco BTG Pactual S.A. and anyand all controllingor controlled companies, their managers, current and former officers, employees andagents and the successors and assigns of all aforementioned persons. These provisions on damagesand  reimbursement   are  additional  and  supplementary  toall  legal  provisions  otherwise agreed between the parties. 

3.4.Information 

The Company shall provide BTG Pactualwithcertain pieces of information, as reasonably requested withinthe scope of this proposal (collectively, the “Information”). The Company acknowledgesandagrees that BTG Pactual (a)shall use and primarily trust and assume as accurate the Information and information usually available to the general public as provided by recognized sources during performance of the services contemplated in this proposal, without carrying out any independent verification, (b)shall not be responsible for the accuracy, completeness or reasonability of theInformation or verification thereof, and (c) shall not analyze the (contingent orother) assets or liabilities of Dedic or ofthe Company. 

BTG Pactual and its controlling companies, subsidiaries, branches and affiliates (collectively, the “BTG Pactual Group”) provide services in a wide rangeof bank transactions, including investment management, corporate finance and advisory in the issuance ofbonds and securities,which may conflict with the interestsand obligations resultingfrom this proposal. No information obtained or maintained by BTG Pactual or by the BTG Pactual Group with regard to which, for some reason, theprofessionals involved in the provision of services contemplated inthis proposal are grantedaccess,shall be taken intoconsideration to establish the liability or operation of BTG Pactualwithin thescope of this instrument. Neither BTG Pactual nor BTG Pactual Group shall be required to provide the Company with or to use to the benefit ofthe Company any non-public information obtained(i) during the provision of services to any third party, (ii) during its participation in any transaction in which they are involved or(iii) in theordinary course of itsbusiness. 

The Company is aware that other individuals or legal entities that have any conflict of interest with theCompany may also be clients ofBTG Pactual and that BTG Pactual mayprovide financialadvisory or otherservices to such individuals or legal entities. 

BTG Pactual shall produce the Valuation Report within up to twenty (20) business days as from receipt from the Company of theinformation requiredandsufficient for preparation thereof.

3.5.Jurisdiction 

This instrument shall be governed by the applicable Brazilian law, and the parties hereby elect the judicial district of the capital city ofthe State of SãoPaulo to resolve any conflicts hereunder. 

3.6.General Provisions 

Shouldthis proposal be accepted,which acceptance shall be formalized by signature of the field providedfor such purpose, the provisions hereof shall be binding upon BTGPactual, theCompanyand their respective successors for aterm of twelve (12) months after the date of acceptance, or for a

 

longer termwhenever specifically providedin thisinstrument. 

This proposal does not represent any commitment to satisfactorily complete and/or to ensure asuccessfulTransaction. Completion of the Transaction shall be conditional upon several factors, including market conditions. 

BTG Pactual shall not provide consulting services tothe Company with regard to legal, tax,accounting and/or regulatory matters, for which reason it shall not issue any opinion on any of these matterswith regard to the Transaction or within the scope of preparation of the Valuation Report.For this reason, the Company shall contract its own consultants and/or specialized professionals,whom it will trust to issue independent opinions andanalyses about these matters. 

This  instrument  represents  the  entire  agreement  between  the  parties,  superseding   any  otheragreement previously reached by the parties with regard to preparation of the Valuation Report. This instrument may neither be changed nor amended without the prior and express written consent of all parties ortheir respective successors. 

Shouldone or more provisions hereof, wholly or in part, be deemed invalid, illegal or unenforceablefor any reason, in any aspectand in any jurisdiction, such invalidity, illegality or unenforceability shall notimpair any other provision hereof, wholly or in part. This instrument shall be construed, inany jurisdiction, as ifthe invalid, illegal or unenforceable provision, wholly or in part, had been rephrasedso as to become valid, legal and enforceable to the extent permitted insuch jurisdiction. 

This  instrument  shall  be  binding  upon  the  Company  and  BTG Pactual   and  their  respectivesuccessors and assigns and upon any successor or assign of a substantial portion of the businessand/or assets of the Company or of BTG Pactual. 

Except to the extent required by law (and confirmed by means of consultationand approval in theform and substance by BTG Pactual) and pursuant to the provisions of subsection 3.2 above, (i)BTG Pactual’s name, (ii) the documents, opinions, suggestions, recommendations, projections andall other documents prepared by BTG Pactual within the scope of the provision of services hereby contracted, including the Valuation Report, or (iii) the terms hereof or of any other communicationfrom BTG Pactual relating to the services provided byBTG Pactual with regard to the provision ofservices hereby describedshall neither be disclosed nor referred to, whether orally or in writing or,with regard to items (ii) and (iii), reproduced or disseminated bythe Company or its affiliates or any oftheir agents without the prior and express formal consent ofBTG Pactual. 

4.CONCLUSION 

BTG Pactual would be honored to be contracted to prepare the Valuation Report, for which purpose it will allocate qualified professionals. 

We hope this proposal meets the Company’s expectations and remain available to provide any 

additional information. 

Shouldyou agree with the terms hereof, we kindly ask you to return a signed counterpart hereofwithin fifteen (15) days after the date ofthis proposal. 

We remain at yourservice for any additionalclarifications. 

 

Regards, 

(sgd) (sgd) 

BANCO BTG PACTUAL S.A. 

Agreed: 

(sgd)	(sgd)
CONTAX PARTICIPAÇÕES S.A.
Michel Sarkis	Sergio Luiz Toledo Piza
Chairman & CEO	Officer
Contax Participações S.A.	Contax Participações S/A
Witnesses:
1. (sgd)	2. (sgd)
Name: Fernanda Ortiz Silva	Name: Gabriel Fernando Barreti
ID (RG): 36.196.196-0-SSP/SP	ID (RG): 35.438.855-1
TAXPAYER CARD (CPF): 324.647.558-00	TAXPAYER CARD (CPF): 315.565.168-78

pgi/10470.doc 

06/20/11 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 05, 2011

CONTAX PARTICIPAÇÕES S.A.
By:	/S/ Michel Neves Sarkis
	Name:   Michel Neves Sarkis Title:     Investor Relations Officer

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.