GVT announced the beginning of the operations in São Paulo, starting by the cities of Sorocaba and Jundiaí, because these cities are inside strategic locations in the state, with intense economic activity. Both cities are in the first step of GVT's expansion schedule in São Paulo. GVT is likely to break into the São Paulo (capital) until 2011.

The company will offer fixed telephony and broadband with 100 Mbps speed.

The investments reached R$ 40.1 million in the construction of network with capacity to 38 thousand broadband and voice accesses, corresponding to 30% of the coverage in both cities.

On December 16, 2010, GVT announced the beginning of its commercial operations in Guarulhos and Osasco.

Vivendi announced in 11/13/09 the acquisition of GVT's stocks from its controllers for R$ 56.00 per stock, what represents 37.9% of the total. Vivendo also had the option of purchasing further stocks (19.6%), reaching the total of 57.5% of the shares.

These options were options were bought in 12/23/09 as well as other groups of stocks. So Vivendi became the owner of 85.5% of GVT's capital.

Vivendi's target is to acquire all GVT's stocks, which would no longer have its shares negotiated in the Brazilian stock exchange.

Public Offer to acquire all GVT's capital

Vivendi launched on 03/26/2010, a public offer (OPA) in order to acquire all GVT's stocks.

Price offered: R$ 56 per share.

Date: 04/27/2010

OPA was successful and Vivendi acquired 16,647,327 ordinary stocks of GVT, what represents 93.58% of the stocks.

Vivendi's participation in GVT reached 99.17% (136.1 million of the 137.2 million shares in GVT's total capital).

Due to the acceptance of the offer by shareholders representing more than two thirds (2/3) of the shares qualified for the auction, GVT's record as an open company should be canceled with proper approval by the CVM.

Considering that the number of the shares left by Vivendi is less than 5% of GVT's capital, the company will promote a special meeting to approve the redemption of the remaining shares for the same price.

On April 14th 2010, GVT started to operate in Fortaleza (CE), João Pessoa and Campina Grande (PB), with complete services of fixed telephony and broadband up to 100Mbps. The impletemntation requested an investment of R$ 95.1 million in the construction of a network with capacity for 107 thousand broadband and voice accesses, it corresponds to 30% of the geographic coverage in the region.

The period for pre-sales in this three cities showed the demand for broadband which represented about 90% of the sales and 96% of those are requests for speeds of 10 Mbps or higher. The Number portability was adopted in 50% of the fixes telephones pre-sales in these three cities.

GVT's plan aims to amplify from 40% to 45% its initial coverage, adding new villages to be covered in the second semester of this year and along 2011 with focus in the capitals of Fortaleza and Josão pessoa.

Breaking into Cerá and Paraíba is part of GVT's process of national expansion which started in 2007 by the beginning of operations in Belo Horizonte, followed by Contagem, Betim (MG) and Salvador (BA), in 2008; Vitória, Vila Velha and Serra (ES) besides Recife and Jaboatão dos Guararapes (PE) in 2009.

Vivendi and Telefonica wnat to purchase GVT

Swarth Group which controls GVT announced in Sep/09 an agreement with Vivendi in order to sell the company control. Vivendi wants to acquire all company's shares through public offer of about R$ 42.00 per share. Vivendi might spend about US$ 2.9 billions in this trade.

Vivendi is a big French media group which controls, with Vodafone, SFR - second mobile carrier in France.

On 10/07/2009, Telefonica launched a public offer in order to acquire at least %1% of GVT's stocks in an auction to be held in Bovespa on 11/19/2009. The price offered by Telefonica reaches R$48.00 per share what would represent an investment of about R$ 6.5 billions.

Telefonica can make an offer because GVT has only ordinary share (with right of vote) and 65% of its stocks arean't owned by controllers.