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

RIO DE JANEIRO, BRAZIL--(Marketwire - August 3, 2010) - TIM Participações S.A. (BOVESPA: TCSL3 and TCSL4) (NYSE: TSU), the company which controls directly TIM Celular S.A. and Intelig Telecomunicações Ltda., announces its results for the second quarter of 2010. TIM Participações S.A. ("TIM Participações" or "TIM") provides telecommunication services with a nationwide presence.

2Q10 Highlights

• Subscriber base grew 17.4% YoY, reaching 44.4 million lines in June, with a net addition of 2.1 million in the 2Q10. The post-paid base reached 6.9 million users, accelerating yearly growth and reaching 341k net adds in the 2Q10 (vs. 42k in 2Q09);
• Record of Gross Additions with 6.4 million lines, more than 30% YoY;
• New plans are running at a strong pace for both segments. Infinity pre-paid base reached 27 million lines while Liberty and Infinity post-paid achieved 2.4 million customers. Sound adherence of 'Chip-avulso' offer: presented at more than 70% of post-paid gross adds in the 2Q10;
• Highest MOU ever, at 110 minutes (+50.8% YoY) driven largely by on-net traffic. Outgoing traffic is 2x higher than a year ago, and almost 90% of the traffic was concentrated within our network;
• Network Quality at 100% for the fourth month in a row according to Anatel's report. Call drop metric continued to show improvement and reached a new low since 2005;
• Net service revenues of R$3,317 million in the 2Q10, a growth of 6.4% YoY, driven by the outgoing voice revenues (+13.8% YoY);
• ARPU stood at R$24.1, flat QoQ. As for SAC, it decreased to R$66 (or 24.2% drop YoY) -- reflecting efficiency on acquisition and yielding a SAC/ARPU ratio reduction to 2.7x (vs. 3.3x in the 2Q09);
• OPEX declined 2.9% yearly to R$2,644 million. Efficiency plan continues to play an important role to support commercial activities;
• EBITDA reached R$887 million, a growth of 16.1% YoY and largely supported by the voice service contribution. EBITDA margin reached 25.1% (vs. 21.9% in the 2Q09);
• Net Profit of R$101.4 million in 2Q10 vs R$30.0 million in 1Q10;
• CAPEX totaled R$436.4 million (~12% of net revenues) -- focused on 3G roll-out and 2G capacity.

2Q10 Conference Call

Conference Call in English:
Aug 3^th, 2010, at:
09:00 AM Brasília time
08:00 AM US ET

Conference Call in Portuguese:
Aug 3^th, 2010, at:
11:00 AM Brasília time
10:00 AM US ET

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

Contact Information:

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