Brasil Telecom Participacoes S.A. Appoints Citibank Successor Depositary for NYSE Listed ADR Program.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 1, 2002

Brasil Telecom Participacoes S.A., a holding company owning 99% of the voting capital and 65% of the total capital of Brasil Telecom S.A., today announced the appointment of Citibank Depositary Receipt Services as successor depositary for its New York Stock Exchange (NYSE) listed American Depositary Receipt (ADR) program.

The company's affiliate Brasil Telecom S.A. already has an ADR program with Citibank.

Each American Depositary Share (ADS) issued under Brasil Telecom Participacoes' program represents 5000 Preferred Shares and trades under the NYSE symbol "BRP" (CUSIP # 105530109). The underlying preferred shares have been trading on the Sao Paulo Stock Exchange - Bovespa since September 1998, and its ADRs have traded on the NYSE since November 1998.

"Brasil Telecom is one of Latin America's premier service providers with admirable commitment to both its customers and its sector. We are extraordinarily well pleased to be appointed successor depositary for Brasil Telecom Participacoes and deepen the relationship," said Kurt Schneiber, Global Managing Director, Citibank Depositary Receipt Services.

Brasil Telecom Participacoes S.A. (NYSE: BRP) is the holding company of Brasil Telecom S.A. (NYSE: BTM), which provides local, intra-state and intra-region long distance, network, data communication and other value-added services to the states of Acre, Rondonia, Mato Grosso, Mato Grosso do Sul, Tocantins, Goias, Santa Catarina, Parana, and Rio Grande do Sul, as well as the Federal District. This operating area covers 23% of the population (over 40 million people), 25% of the Brazilian GDP (approximately R$276 billion in 2001) and 33% of the nation's territory (nearly 2.8 million km2). In 2001, consolidated net revenues reached R$6,158 million (approximately US$2.618 million), 36.5% above the figures registered in the previous year due to the increase of 16.0% of its plant in service. For further information, visit www.brasiltelecom.com.br/rinew.

For more information on Citibank's ADR programs, as well as industry trends and developments, please visit www.citibank.com/adr.

Citibank Depositary Receipt Services leads the market in bringing quality issuers to the U.S. market and promoting American Depositary Receipts as an effective capital markets tool. Citibank began offering ADRs in 1928 and today is the market leader, widely recognized for delivering high quality, highly liquid programs to its customers.

Citibank Depositary Receipt Services is a part of Citibank Global Securities Services, which serves global issuers, investors and intermediaries through the world's largest and most acclaimed proprietary network spanning 50 countries. It currently provides securities services to more than 2,500 customers worldwide and has more than $5 trillion in assets under custody. Citibank is the industry's premier custodian of cross-border assets, top ranked global clearer and recognized leader in depositary receipt services and agency and trust services.

Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Salomon Smith Barney, Banamex, and Travelers. Additional information may be found at: www.citigroup.com.