Telebras Basket ADR -NYSE: RTB- Simplified procedure for conversion from TBR and TBH into RTB.

NEW YORK--(BUSINESS WIRE)--Nov. 10, 1998--In an effort to simplify the conversion procedure from TBR and TBH to RTB, J.P. Morgan has worked with the Central Bank of Brazil to allow U.S. investors to switch directly into RTB without the need to have an account in Brazil.

As of today, current holders of TBR or TBH ADRs will be able to convert into RTB with one single instruction. Investors or their financial agents will simply need to send a request for cancellation of TBR or TBH to the depositary bank of these ADRs, The Bank of New York (BoNY), specifying the Depository Trust Company (DTC) account to be credited with the RTBs. BoNY will then forward the instruction to the local custodian, Banco Itau. To ensure timely execution, investors should also send a facsimile copy of the cancellation instruction to Banco Itau (fax: [phone] attn. ADR Department). On the next day, Banco Itau will convert the local shares into RCTB 40 portfolio certificates for deposit in the account of J.P. Morgan. Morgan will issue the RTBs for credit to the relevant DTC account that same day.

Savings opportunity

Investors who plan to convert their TBR or TBH holdings into RTB should note that they may save the expense and inconvenience of multiple ADR cancellations by converting prior to the NYSE listings of the twelve holding companies' ADRs, an event which is expected to occur on November 16, 1998 with a record date of November 13. Cancellation requests should be sent to BoNY as early as possible and at the latest before 2:00 pm on November 12 to ensure execution prior to the listings.

RTB Background

RTB ADRs started trading on the NYSE on October 13. They represent portfolio certificates (BOVESPA: RCTB 40) consisting of the preferred shares of the twelve holding companies of Telebras and the Telebras residual company. RTBs provide U.S. investors with the opportunity to hold and trade the stocks of the combined companies in one single ADR. RTBs offer the major advantage of being backed by a liquid local market instrument. The RCTB 40s have become one of the most actively traded securities on BOVESPA following the September listing of the spun-off Telebras companies.

For more information on American depositary receipt services, please visit: www.adr.com, J.P. Morgan's central source for timely worldwide ADR market intelligence and investor information.

An ADS, or American depositary share, is a share evidenced by an American depositary receipt that represents a specified number of underlying shares held in custody in the issuer's home market. The terms ADR and ADS are often used interchangeably.

Neither this announcement nor the information contained herein constitutes an offer or solicitation by J.P. Morgan for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful. Information herein is believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy.