VIVAX's Net Profit Reaches R$ 7.2 Million in the First Quarter 2006.

EBITDA Margin Reaches 41.7%

SAO PAULO, Brazil, May 11 /PRNewswire/ -- VIVAX S.A. (Bovespa: VVAX11), the second largest cable TV operator in Brazil in number of subscribers and one of the leading broadband Internet service providers in Brazil, ended the first quarter 2006 with net revenue of R$ 75.7 million, a 20.8% increase when compared to the same period of the previous year.

Gross revenues also grew in the same proportion (20.7%), reaching R$ 88.3 million at the end of the first quarter 2006. The most substantial growth took place in the broadband Internet segment that recorded a 45.2% increase in gross revenues (totaling R$ 22.1 million). The gross revenue of Pay-TV service grew 10.8%, reaching R$ 56.5 million in the first quarter of 2006.

With net income of R$ 7.2 million, versus a net loss of R$ 2.1 million recorded in the first quarter 2005, VIVAX also celebrated the 63.7% decrease in net debt, down to R$ 137.4 million in 2006 from R$ 387.7 million in 2005.

EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$ 31.6 million in the first quarter 2006, 44.3% over the reported in the first quarter of the previous year. EBITDA margin reached 41.7%.

Subscribers -- The number of pay-TV subscribers grew 9.8%, rising from 275,026 in the first quarter 2005 to 302,001 in the first quarter 2006. The growth of the Broadband Internet subscriber's base was 60%, now totaling 96,469 subscribers. The number of bundled services subscribers (pay TV and Broadband Internet) increased 64.5%, from 45,404 subscribers in the first quarter of 2005 to 74,667 subscribers in the first quarter of 2006.

VIVAX invested a total of R$ 12.1 million in the first quarter, which represents 13.7% of its gross revenue. The investments were concentrated on the expansion of the pay TV and Broadband Internet subscribers' base, in addition to wholesale carrier services.

Initial Public Offering -- In February 2006, the Company went public in the Sao Paulo' Stock Exchange (Bovespa). The public offering of 21.6 million Units, at R$ 24.50 per share, totaled R$ 592.2 million raised in the transaction. Since its public offering until May 10, VIVAX' Units had a 35.5% appreciation, against 14.2% of Ibovespa.

CONTACT: Investor Relations: Carlos Norbert of VIVAX, +55-11-5506-0200, ri@vivax.com.br; or MZ Media Relations: Mariela de Castro Santos, +55-11-3186-3866, mariela.castro@mz-ir.com, for VIVAX