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The Best Content
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10th World Market, Growing Fast

• Brazil is the 10th largest Internet market in
  terms of total users
• Penetration is still low, indicating tremendous
  growth potential going forward

Source Internetworldstats.com, March 06
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The Brazilian Market

• Population 186 million
• Addressable market 63 million (16 with
  telefone)
• 40 million fixed telephone lines
• Internet users 33 million (65 on broadband)
• Higher time online than US 19h24m
• 3.9 million households with cable TV
• 3.8 million households with broadband
• 3.1 million ADSL
• 0.7 million cable other

Source teleco.com, Ibope/Netratings
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Fact sheet

• Founded in 04/96 public company since 12/2005
  company valuation at IPO U 1B
• Revenues in 2005 U 250M content subscribers
  1,47M

Before IPO
Other
Folhapar
Portugal Telecom

• Major shareholder Folhapar also owns Br biggest
  newspaper Folha de S.Paulo, 50 of the leading
  business daily newspaper Valor Economico,
  reaserch institute DataFolha and printing
  facility Plural
• Portugal Telecom owns 50 of Br biggest mobile
  operator Vivo

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Strategy
AD SALES REVENUES BRAND ADVERTISEMENT
SPONSORED LINKS (search, contextual and
profile)
PORTAL PRODUCTS UOL Chat, UOL Blog,UOL
Photoblog, real-time news, message
boards, online readio
UOLCONTENT
SERVICE PRODUCTSUOL Messenger, UOL e-mail 2G/4G
ANTIVIRUS, FIREWALL VOiP, music downloads
CONTENT SUBSCRIBERS DIAL-UP, DSL, CABLE, PLC,
WIMAX, WIFI
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Leadership in Audience Horizontal Portals

• Foundation for brand advertising contextual
  sponsored links

Average Time Spent Online (in hours per user per
month)
Source Ibope//NetRatings (BRAND Horizontal
Portals Search HOME Internet applications
excluded)
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UOL home-page is the reference for most
Brazilians...

• According to IBOPE//NetRatings, the audience is
  more than 4x bigger than the 2nd portal

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But users also go deep into the portal to seek
content

• IBOPE//NetRatings categories with more than 1.0
  million Unique Visitors per month

Source Ibope//NetRatings (BRAND Horizontal
Portals Search HOME Internet applications
excluded) Mar, 2006
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Best Content in Portuguese

• In 90 of the channels, UOL ranks in the top 3
  position

Rankings are presented only for channels that
have independent measurement Source
IBOPE//Netratings, Unique Visitors.
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Best Content in Portuguese
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Best Content in Portuguese
UOL has the worlds largest content in Portuguese
language 42 thematic stations, with more than
1,000 different channels covering news,
information, entertainment and services, totaling
more than 7 million pages Clear leader in the
Brazilian Internet news category Leader in
Chat Prestigious content agreements with The New
York Times, USA Today, Le Monde, El País, Der
Spiegel, Financial Times, BBC and Folha de S.
Paulo First Brazilian Internet TV launched in
1997 70 of UOLs Content is open to
visitors 80 of UOLs Content is developed
internally
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Search Audience Consolidating the 2nd Position

• UOL reached the 2nd position in search in
  December, 05
• Foundation for search sponsored links

Search Brazil Unique Visitors Mar, 2006 (000)
Source IBOPE/Netratings, websites (excluding
Internet softwares) Brand Home.
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UOL Search Competitive Advantage in Brazil

• Search at UOL in Brazil
• 95 local
• 5 international
• UOL has world-class tools for local search
• UOL has proprietary search solutions attending
  local needs
• UOL signed a perpetual license agreement with
  Fastsearch
• More than 80 of all Portuguese native speakers
  worldwide reside in Brazil

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Sponsored Links Monetizing Internet Audience

• Complete proprietary Sponsored Links platform for
  the whole portal search, profile and contextual
• Own sales force
• UOL has a long relationship with more than 75.000
  small and medium businesses Sponsored Links
  clients

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Best positioned Leadership in Internet
Advertising

• UOL has complete solutions for online
  advertising branding, e-commerce, e-mail mkt,
  sponsored links

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Monetization of Value-Added Services

• UOL Phone VoIP solution
• UOL Antivirus Firewall
• UOL Parental Control
• UOL Giga-mail
• UOL Megastore (music download)

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Online Advertising growth potential

• Broadband in Brazil grows at a CAGR of 76
  (2002-Dec/05)
• Cable TV has 50 of the reach and 2x more
  investment than online

Mkt Share Brazil 1,7
Source ZenithOptmedia, Intermeios, Teleco.com
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