To Brasil Telecom, its main intangible assets are the values expressed by its mother-brand; its client portfolio; its intellectual capital; its ethical performance, which reinforces its values in company operations; and efficient internal communication, maximizing the interaction of diverse Brasil Telecom areas in search of technological solutions for its clients.

THE BRASIL TELECOM BRAND

The Brasil Telecom brand translates the Company's essence. It helps transmit the Company's main values to its clients, associates, stockholders, suppliers and the general public. Seeking coherence and unity, Brasil Telecom constructed its brand portfolio based on studies that indicate the main attributes valued by its clients: credibility, portfolio convenience, assistance excellence, quality services, technology, responsibility and proximity to its public.

The architecture of the Company's brand is oriented to fortify the Brasil Telecom mother-brand. The products and services have names and the endorsement of the Company's brand, which permits maintaining the unity and coherence of its visual identity. This strategy also seeks to optimize investments in communication and to position us clearly, thus increasing our clients' loyalty.

The mother-brand represents the Company's identity. Brasil Telecom - whose mission is to be the best telecommunications Company in Brazil and a leader in technology, complete and convergent -, sees its client as the main reason for its existence, seeking to understand the client's needs and serve them with quality and efficiency.

Through constant and aligned communication, Brasil Telecom has been building its image before its clients. Throughout 2007, in its communication campaigns, it worked on the main attributes of each product and service, highlighting their benefits to the consumer.

It repositioned CSP 14, emphasizing that only the voice joins people. It recovered the importance of fixed telephone services upon demonstrating its evolution, and positioned its Turbo broadband service, presenting the unlimited possibilities of the internet for those who want everything.

Communication in the launching of products and services also reinforced Brasil Telecom's innovative image and its concern over offering its clients what is best and newest on the market.

The company's brand fills its communication campaigns with energy and credibility. At the same time, the benefits offered and how they are presented to clients fortify the Brasil Telecom brand.

CLIENT PORTFOLIO

The results achieved with the launching of mobile telephone services prove the importance of the client portfolio at Brasil Telecom. Our 8.4 million cabletelephone clients contributed to make Brasil Telecom Mobile the owner of a 13.2% market share after little more than three years of operation, which represents winning over 4.3 million clients in Region II. Yet, the possibility of boosting the operation is not limited to fixed phone services because the Internet Group, Brasil Telecom's internet division, possesses around 4 million active, dial-up internet users and over 1.3 million broadband clients throughout Brazil.

INTELLECTUAL CAPITAL

The Company's management is conducted by the Administrative Councils and Executive Committees of Brasil Telecom Participações and Brasil Telecom S.A. Each company also has its own Audit Committee, which is responsible for auditing its administration. Brasil Telecom presents its professionals as a fundamental factor to the success of its operation and recognizes that they are one of its main intangible assets.

PROFESSIONAL AND SOCIAL QUALIFICATIONS OF THE DIRECTORS OF THE BOARD

Ricardo Knoepfelmacher
Ricardo Knoepfelmacher, also known as Ricardo K., assumed the Presidency of Brasil Telecom Participações S.A. in August 2005. An economist who graduated from the University of Brasília (UNB), Ricardo received his MIM (Masters in International Management) at Thunderbird (Arizona, USA). He worked as an executive for Citigroup and Grupo Nutrimental and as a consultant for McKinsey & Company until becoming one of the founding partners of a firm engaged in consulting and business restructuring that was sold in 1998 to the strategic consulting firm of the Monitor Group, which made it its Brazilian subsidiary. As the principal executive, advisor and consultant, he participated in over ten operational and financial restructuring projects. After being the President of the restructuring and sales project at Pegasus Telecom, he founded Angra Partners, a fund management and advisory company, which began its activities helping foreign private-equity funds to restructure their operations in Brazil. He left the company to assume his position at Brasil Telecom.

Paulo Narcélio Simões Amaral
Since April 2007, Paulo Narcélio conducts the Vice Presidency of Finances and Investor Relations at Brasil Telecom. Previously, he was the CFO and Investor Relations executive for various telecommunications companies such as TIM Nordeste (TIM Northeast) and Tele Centro-Oeste Celular (Mid-West Cellular Telephone) and for communications media such as the UOL internet site and the newspaper Folha de S. Paulo. He also acted as financial advisor for companies like Aquaplus, Deprocer, Grupo Othon and was Director of Financial Operations for Banco Inter-Atlântico (Inter-Atlantic Bank), as well as being a substitute member of the Administrative Council of the newspaper Valor Econômico, which is controlled by the Folha and Globo groups. His academic education began by graduating in Economy from Rio de Janeiro State University and continued with an MBA in Finances from the Brazilian Capital Market Institute (IBMEC), an extension course in Business Administration at the Getulio Vargas Foundation (FGV) and incomplete post-graduate studies in foreign commerce (UFERJ). Narcélio has also taken executive courses in Finances and Marketing at Wharton in the United States, and an Advanced Management Program at the INSEAD in France.

Francisco Aurélio Sampaio Santiago
Francisco Santiago acts as Chief Operating Officer for Brasil Telecom S.A., besides exercising the function of Technical Director for Brasil Telecom Participações S.A. since August 2003. He is also a member of the IG Administrative Council. He was Vice President of Commercial and Network Management and has occupied the posts of Network Director, Director Adjunct of Goal Achievement and Network Director Adjunct at Brasil Telecom. At that company, he was also the Network Director for Central Brazil (Brasília, Goiás and Tocantins) and Southern Brazil (Paraná, Santa Catarina and CTMR in Rio Grande do Sul). He has been in the field for 28 years, having held, among others, the positions of Director of Engineering, of Human Recourses and of the Cell-Phone Department at Telebrasília. Santiago graduated in Electrical Engineering from the University of Brasília, and took post-graduate courses in Telecommunications at the National Superior School of Telecommunications (ENST) in Paris in 1984, and in Teleinformatics at UnB in 1987.

André Rizzi
André Rizzi is Purchase and Administrative Services Officer at Brasil Telecom. He graduated in Civil Engineering from the Polytechnic School of the University of São Paulo; has an M.B.A. in finance and operations from the Kellogg School of Business in the United States; and training in finances, negotiations and corporate restructuring at Harvard, Oxford and IBMEC. He acted as production engineer for the Andrade Gutierrez Construction Company in São Paulo. He was the founding partner of Angra Partners, a company engaged in fund management and advisory activities; the project director for the Boston Consulting Group (BCG); and an advisor for Monitor Company. He was also a member of the Administrative Council of the Rio de Janeiro Metro.

Fábio Moser
Fábio Moser is Corporate Governance and Corporate Business Officer at Brasil Telecom. He graduated in Business Administration from Candido Mendes University and has a Masters in Business Administration and an M.B.A. in Finances from the Brazilian Capital Market Institute (IBMEC), as well as having taken extension courses in Governance at the Harvard Business School. He is also President of the SISTEL Foundation Social Security Council, President of the Decision-Making Council for the 14 and BrTPrev Foundations and member of the IG Administrative Council. He acted as Director of Administration and Investor Relations at Fiago Participações S.A. In the Bank of Brazil employees' social security savings department, he acted as manager for accompanying strategic businesses in the telecommunications division and as team manager. He has been a member of the administrative councils of approximately ten companies, such as Brasil Telecom Participações S.A., Brasil Telecom S.A. and Solpart Participações S.A.

Luiz Francisco Tenório Perrone
The Strategic Planning and Regulatory Affairs Officer at Brasil Telecom, Luiz Francisco Perrone, has vast experience in telecommunications nationally and internationally. He was President of Hispamar Satélites, Vice President of the Board of Directors of ANATEL, and Services Director and Substitute President of Embratel. At Intelsat in Washington, he held various director-level positions - Director of External Relations, Director of Operations, Director of Sales and Director of Services. Previously, at Embratel, he occupied the posts of Chief of the Belo Horizonte District, Chief of Engineering for the Southern Region, National Superintendent of Operations (Rio de Janeiro), Office Chief in Washington and Assistant to the Director of International Operations. He also engaged in technical activities for Telefunken of Brazil and Rohde und Schwartz in Munich, Germany. Perrone has been an assistant professor of Circuit Theory at the UFRJ School of Engineering. He represented Brazil and Intelsat as a delegate and as a delegation chief at various international conferences of Intelsat, Inmarsat, the United Nations, the International Telecommunications Union (UIT), Citel and other organizations linked to telecommunications. He also was Vice Chairman and Chairman of the Administrative Council of Inmarsat in London. He participated on the Board of Directors of Abrasat and currently participates on the Boards of Directors of Abrafix and Telebrasil (telecommunications trade associations). Perrone graduated in Electronic Engineering from the Aeronautical Institute of Technology (ITA), also having participated in extension courses in France, Holland and the United States.

ETHICAL PERFORMANCE

The ethical principles that permeate all Brasil Telecom processes are detailed in the Code of Ethics - the elaboration of which involved associates from all areas and hierarchical levels - and are translated into concrete procedures in the Company's day-to-day operations. The formalization of the directives that orient the professional activities of the associates and relations with all types of public occurred by way of the Codes of Conduct - for associates and suppliers - of the Directorate of Supplies. The clear definition of the rules encourages responsibility, favors trust in relationships and guides decision-making on all levels.

TRANSPARENCY IN THE COMMUNICATION OF INCOME INFORMATION

With the objective of increasing its transparency, Brasil Telecom transmits data on its operating income and financial income to the market in a clear, objective manner. In 2007, the Company held meetings with Apimec (Association of Capital Markets Analysts and Investment Professionals) associations, meetings that are open to the public in São Paulo, Rio de Janeiro and Brasília to present the Company's principal income information for the quarter or for the year and its main goals and challenges. In addition, teleconferences by webcast in Portuguese and English are held every quarter to divulge income data.

EFFICIENT INTERNAL COMMUNICATION

As a systematic, educational operation, the main objective of Brasil Telecom's internal communication is to guide all associates from all areas and hierarchical levels to fully understand the Company's business and align themselves with corporate values and goals. Brasil Telecom uses its own channels and tools to disseminate important, relevant information efficiently.

Brasil Telecom has various channels of communication that democratize information, such as the Intranet, the magazine Conexão 14, mural-journals at its affiliate offices, an electronic mural at its headquarters and an electronic journal (newsletter).