2Q12 Results: Telefonica Brasil S.A.

                     2Q12 Results: Telefonica Brasil S.A.

PR Newswire

SAO PAULO, July 25, 2012

SAO PAULO, July 25, 2012 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3
[ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces
its consolidated results for the second quarter 2012 (2Q12). Combining
accelerated growth in mobile revenue and increased rationality in selling
expenses, recorded EBITDA Margin of 37.5%.

   R$ million                  2Q12      1Q12      2Q11
Net Revenue                    8,243.5   8,314.3   8,260.9
Total Operating Costs          (5,150.6) (5,467.0) (5,198.2)
EBITDA                         3,092.9   2,847.3   3,062.7
EBITDA Margin (%)              37.5%     34.2%     37.1%
Net Result                     1,085.5   956.6     1,149.4
Number of accesses (thousand)  90,858    90,036    79,331
Mobile accesses                75,720    74,784    64,049
Fixed accesses                 15,138    15,252    15,282

Total accesses reached 90.9 million in 2Q12 (+14.5% y-o-y), 75.7 million of
which in the mobile business (+18.2% y-o-y) and 15.1 million in the fixed-line
business (-0.9% y-o-y);

In the mobile market, the market share totaled 29.6% (+0.1 p.p. y-o-y), even
considering the additional disconnected lines of 1.6 million prepaid accesses
in the quarter;

We increased our leadership in the postpaid market, recording 36.6% market
share (+0.5 p.p. y-o-y). Considering only the number of modens and according
to the data published by Anatel in June, 49.2% of brazillian customers are
from Vivo. Fixed broadband accesses moved up by  7.1% y-o-y to 3.7 million
accesses;

Corporate business continued to expand, recording, in 2Q12, annual growth of
net additions of 36% in fixed voice, 20% in broadband and 71% in mobile
accesses;

The launching of Vivo brand for fixed-line services in April, and the
operation quality strengthening already result in major increase in customer
satisfaction with voice services, broadband and Pay TV;

Net service revenues of R$8,075.0 million in 2Q12 represents annual growth of
1.0%, affected by regulatory changes which reduced growth by around 2 p.p.;

Mobile Services Revenue maintained its high annual growth, recording a
positive variation of 10.9% (+13.8% without the MTR impact), driven by the
Data and VAS revenue, which recorded annual growth of 21.0% in 2Q12;

Operating costs decrease in 2Q12 (-0,9% y-o-y) due to the acceleration on the
synergy capturing process, reasonable commercial strategy and non-recurrent
events.

EBITDA Margin of 37.5% in the quarter (+0.4 p.p. y-o-y);

Cash flow after investment activities reached R$1,678.7 million in the
semester, +7.5% y-o-y.

TELEFONICA BRASIL – Investor Relations
Gilmar Roberto Camurra
Cristiane Barretto Sales
Carlos Raimar Schoeninger
Luis Carlos Plaster
Maria Tereza Ali Pelicano David
Chucri Zaidam, 860 – Morumbi – SP – 04583-110
Phone: +55 11 7420-1172
Email: ir.br@telefonica.com

To download the complete version of the Company's earnings release, please
visit our website: http://www.telefonica.com.br/investidores.

SOURCE Telefonica Brasil S.A.

Website: http://www.telefonica.com.br/investidores