Indicate by check mark
whether the registrant by furnishing the
information contained in this Form is
also thereby furnishing the
information to the Commission pursuant to Rule
12g3-2(b) under
the Securities Exchange Act of 1934.
Yes ______ No ___X___
Investor Relations | |
(61) 3415-1140 | |
ri@brasiltelecom.com.br | |
Media Relations | |
(61) 3415-1378 | |
cesarb@brasiltelecom.com.br |
Free Translation
BRASIL TELECOM S.A. |
BRASIL TELECOM PARTICIPAÇÕES S.A. |
|
Publicly Held Company |
Publicly Held Company |
|
Corporate Tax Payer Registration |
Corporate Tax Payer Registration |
|
76.535.764/0001-43 |
02.570.688/0001-70 |
|
Board of Trade 53 3 0000622 9 |
Board of Trade 53 3 0000581 8 |
MATERIAL FACT
Brasil Telecom Participações S.A. (BOVESPA: BRTP3/BRTP4; NYSE: BRP) and Brasil Telecom S.A. (BOVESPA: BRTO3/BRTO4; NYSE: BTM), in compliance with notice CVM/SEP/GEA-2/358/005 issued on 07/28/2005 by the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários) to Brasil Telecom Participações S.A., provides clarifications to the market regarding its commercial relations with DNA Propaganda Ltda. (DNA) and SMP&B Comunicação Ltda. (SMP&B).
1. |
It is important to mention that, Brasil Telecom Participações S.A. does not have any commercial relation with DNA nor with SMP&B; |
2. |
Brasil Telecom S.A. has been using eventual and sporadically, the services from DNA and SMP&B, since the 2nd semester of 2003 and 1st semester of 2004, respectively; |
3. | By means of DNA, Brasil Telecom S.A. has broadcasted public utility information programs in radio networks in cities from the interior of Goiás, Rio Grande do Sul, Santa Catarina, Tocantins and Paraná, which amounted to R$ 823.5 thousand. From the total expenses with marketing and advertising that year, Brasil Telecom S.A.s expenses with DNA represented 0.96%; |
4. | From 2004 up to the 1st semester 2005, SMP&B has rendered services of publicity and advertisement agency, sales promotion, publicity campaigns and production of commercial movies, with investments amounting to R$ 3.7 million, which represented 1.43% of the marketing and advertisement expenses incurred by Brasil Telecom S.A. during the same period; |
5. | We reiterate that it is common in the advertisement business that the agencies forward the payment(s) to the communication vehicles and other suppliers, after deducting their commission; |
6. | The percentile commissions paid to DNA and SMP&B by Brasil Telecom S.A. for the production of publicity and broadcasting campaigns are within the margins established by CENP (Conselho Executivo de Normas Padrão), corporation that regulates the standards for the advertising activity; |
7. | In June 29, 2005, due to the fact that DNA and SMP&B are involved in events that are being shown by the media and that is the object of the CPI (Comissão Parlamentar de Inquérito), Brasil Telecom S.A. summoned those agencies extrajudicially, suspending any commercial relations until all facts, at Brasil Telecom S.A.s discretion, are fully cleared. |
Brasilia, July 29, 2005
Carla Cico | Humberto José Rocha Braz | |
CEO and Investor Relations Officer | CEO | |
Brasil Telecom S.A. | Brasil Telecom Participações S.A. |
BRASIL TELECOM PARTICIPAÇÕES S.A. |
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By: |
/S/ Humberto José Rocha Braz
|
|
Name: Humberto José Rocha Braz
Title: Chief Executive Officer |