---

---

---

---

---

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___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):

---

GROSS REVENUE OF R$ 4.0 BILLION AND
NET INCOME OF R$ 321.4 MILLION IN THE 1Q08

Brasília, April 22, 2008 - Brasil Telecom S.A. (BOVESPA: BRTO3/BRTO4; NYSE: BTM) announces its consolidated results for the first quarter of 2008 (1Q08). The Company’s financial statements are presented in millions of Reais, except where stated otherwise, and prepared in conformity with generally accepted accounting principles in Brazil.

HIGHLIGHTS

• Consolidated net income totaled R$321.4 million, 50.2% up year-on-year.
  
  
• Consolidated gross revenue came to R$4,036.1 million, 3.6% up year-on-year while consolidated net revenue stood at R$2,762.0 million, 2.6% up year-on-year.
  
  
• Gross data communication revenue totaled R$791.0 million, 23.0% up year-on-year. ADSL users came to 1,637,300, 18.3% up year-on-year.
  
  
• Mobile telephony net revenue continued increasing, totaling R$426.1 million, 10.7% up year-on-year. BrT Móvel’s EBITDA stood at R$14.7 million, 236.3% up year-on-year. The number of mobile users came to 4.6 million, 25.8% up year-on-year.
  
  
• The number of lines in service (LIS) stood at 8,036,000, virtually in line with the 4Q07, but 2.9% down on the 1Q07.
  
  
• Internet Group providers closed the quarter with 1.3 million broadband subscribers, 16.2% up year- on-year, maintaining its market in region II.

IR CONTACTS
Paulo Narcélio (CFO and IRO)		Phone: (55 61) 3415-1140		ri@brasiltelecom.com.br
Flávia Menezes (IR Manager)		Phone: (55 61) 3415-1256		flavia@brasiltelecom.com.br
Aline Sonntag		Phone: (55 61) 3415-8537		aline.sonntag@brasiltelecom.com.br
Daniela Santos		Phone: (55 61) 3415-8334		daniela.santos@brasiltelecom.com.br
Lélia Werner		Phone: (55 61) 3415-1123		lw@brasiltelecom.com.br
Maria Lúcia Rocha		Phone: (55 61) 3415-1291		malu@brasiltelecom.com.br
MEDIA CONTACTS
Wellington Silva (Assistant Director)		Phone: (55 61) 3415-9657		wellingtons@brasiltelecom.com.br
César Borges (Manager)		Phone: (55 61) 3415-1378		cesarb@brasiltelecom.com.br

Brasil Telecom Participações S.A. controls Brasil Telecom S.A.,a telecommunications company that provides wireline services, including national and international calls, and mobile telephony, as well as public telephony, data communication, network and supplementary and value-added services in the states of Rondônia,, Acre, Mato Grosso, Mato Grosso do Sul, Tocantins, Goiás, Santa Catarina, Paraná and Rio Grande do Sul and in the Federal District. Its coverage area corresponds to 24% of the population (approximately 44 million), 27% of GDP (around R$ 420 billion in 2003) and 33% of national territory (close to 2.8 million km²).

Brasil Telecom S.A.		Page 1 of 21

---

INCOME STATEMENT

R$ Million		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
GROSS REVENUES		3,897.1		4,130.2		4,036.1		-2.3%		3.6%
FIXED TELEPHONY		2,824.4		2,852.0		2,779.0		-2.6%		-1.6%
Local Service		1,648.0		1,659.3		1,588.8		-4.2%		-3.6%
Public Telephony		129.0		137.8		134.1		-2.7%		3.9%
Long Distance Service		756.3		743.5		763.6		2.7%		1.0%
Interconnection		85.0		107.8		81.4		-24.5%		-4.2%
Lease of Means		89.7		95.5		103.6		8.5%		15.5%
Supplementary and Value Added Services		106.3		99.3		99.5		0.2%		-6.4%
Other		10.0		8.8		7.9		-9.8%		-20.9%
MOBILE TELEPHONY *		429.7		542.9		466.1		-14.2%		8.5%
Services		377.5		468.1		426.5		-8.9%		13.0%
Merchandise Sales (Handsets and Accessories)		52.2		74.8		39.5		-47.2%		-24.2%
DATA COMMUNICATIONS		642.9		735.3		791.0		7.6%		23.0%
Deductions		(1,206.2)		(1,254.1)		(1,274.1)		1.6%		5.6%
NET REVENUES		2,690.9		2,876.1		2,762.0		-4.0%		2.6%
OPERATING COSTS AND EXPENSES		(1,734.7)		(1,968.2)		(1,845.9)		-6.2%		6.4%
Personnel		(150.2)		(180.8)		(215.6)		19.2%		43.5%
Materials		(77.3)		(108.3)		(75.4)		-30.3%		-2.4%
Subcontracted Services		(562.6)		(581.3)		(539.2)		-7.2%		-4.2%
Interconnection		(576.5)		(613.9)		(563.6)		-8.2%		-2.2%
Advertising and Marketing		(24.8)		(64.8)		(42.4)		-34.6%		71.0%
Provisions and Losses		(218.2)		(297.2)		(278.9)		-6.2%		27.8%
Other		(125.1)		(122.0)		(130.8)		7.3%		4.6%
EBITDA		956.2		907.9		916.0		0.9%		-4.2%
EBITDA Margin		35.5%		31.6%		33.2%		1.6 p.p.		-2.4 p.p.
Depreciation and Amortization		(649.2)		(584.4)		(544.7)		-6.8%		-16.1%
EARNINGS BEFORE FINANCIAL RESULT (EBIT)		306.9		323.5		371.3		14.8%		21.0%
Financial Result		(344.9)		(145.5)		(247.2)		69.9%		-28.3%
Financial Revenues		107.4		132.8		168.0		26.5%		56.4%
Financial Expenses		(207.3)		(172.9)		(170.2)		-1.5%		-17.9%
Interest on Equity		(245.0)		(105.4)		(245.0)		N.A.		N.A.
EARNINGS AFTER FINANCIAL RESULT		(37.9)		178.0		124.1		-30.2%		N.A.
Non-Operating Revenues (Expenses)		3.4		(11.6)		2.7		N.A.		-21.3%
Goodwill Amortization		(0.1)		-		-		-		N.A.
Other		3.5		(11.6)		2.7		N.A.		-23.5%
EARNINGS BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES		(34.5)		166.3		126.8		-23.8%		N.A.
Income and Social Contribution Taxes		3.0		(60.8)		(51.3)		-15.7%		N.A.
EARNINGS BEFORE PROFIT SHARING		(31.6)		105.5		75.5		-28.4%		N.A.
Minority Interest		0.6		0.5		0.8		51.1%		40.2%
EARNINGS BEFORE REVERSION OF INTEREST ON EQUITY		(31.0)		106.0		76.4		-28.0%		N.A.
Reversion of Interest on Equity		245.0		105.4		245.0		N.A.		N.A.
NET INCOME		214.0		211.4		321.4		52.0%		50.2%
Net Income/shares - R$ **		0.3910		0.3863		0.5871		52.0%		50.1%
Net Income/ADR - US$		0.6379		0.6543		1.007026		53.9%		57.9%
* The values of 4Q06 were reclassified, including the data communications revenue (VAS).
**The values of 4Q06 are per 1,000 shares.

Brasil Telecom S.A.		Page 2 of 21

---

BRT MÓVEL

R$ Million		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
GROSS REVENUES		541.3		657.1		576.8		-12.2%		6.6%
Services		489.1		582.2		537.2		-7.7%		9.8%
Subscription		101.4		104.2		97.1		-6.8%		-4.2%
Utilization		121.5		153.3		135.8		-11.4%		11.8%
Interconnection		239.1		284.0		261.3		-8.0%		9.3%
Other Revenues		9.8		9.4		9.3		-0.7%		-5.4%
Data Communications		17.2		31.4		33.7		7.4%		95.7%
Merchandise Sales (Handsets and Accessories)		52.2		74.8		39.5		-47.2%		-24.2%
Deductions		(156.3)		(174.2)		(150.7)		-13.5%		-3.6%
NET REVENUES		385.0		482.9		426.1		-11.8%		10.7%
OPERATING COSTS AND EXPENSES		(380.6)		(472.5)		(411.4)		-12.9%		8.1%
Personnel		(18.7)		(18.7)		(17.1)		-8.5%		-8.2%
Materials		(55.9)		(86.4)		(56.7)		-34.3%		1.4%
Subcontracted Services		(93.7)		(100.9)		(99.5)		-1.4%		6.1%
Interconnection		(128.0)		(165.4)		(145.8)		-11.8%		13.9%
Advertising and Marketing		(10.2)		(16.3)		(12.6)		-22.7%		23.5%
Provisions and Losses		(14.6)		(23.9)		(21.4)		-10.1%		46.5%
Other		(59.4)		(61.1)		(58.2)		-4.7%		-2.1%
EBITDA		4.4		10.3		14.7		42.3%		236.3%
EBITDA Margin		1.1%		2.1%		3.4%		1.3 p.p.		2.3 p.p.
Depreciation and Amortization		(94.5)		(100.2)		(107.4)		7.2%		13.6%
EARNINGS BEFORE FINANCIAL RESULT		(90.2)		(89.8)		(92.7)		3.2%		2.8%
Financial Result		10.6		15.8		25.8		63.1%		143.4%
Financial Revenues		22.7		37.2		41.3		11.0%		82.1%
Financial Expenses		(12.1)		(21.4)		(15.5)		-27.6%		28.2%
EARNINGS AFTER FINANCIAL RESULT		(79.5)		(74.0)		(66.9)		-9.6%		-15.9%
Non-Operating Revenues (Expenses)		-		(3.8)		(0.0)		-100.0%
EARNINGS BEFORE INCOME AND SOCIAL CONTRIBUION TAXES		(79.5)		(77.8)		(66.9)		-14.0%		-15.9%
Income and Social Contribution Taxes		27.1		26.4		22.5		-14.8%		-17.0%
NET EARNINGS (LOSSES)		(52.5)		(51.4)		(44.4)		-13.6%		-15.3%

Brasil Telecom S.A.		Page 3 of 21

---

OPERATING PERFORMANCE

WIRELINE

With the purpose of building customer loyalty, Brasil Telecom launched Pluri packages, which enable clients to integrate wireline, mobile and broadband services.

In order to expand telephone services in segments with lower consumption, Brasil Telecom continued to promote the “Total Control” plan, a prepaid wireline service offered through an approach geared to areas where it is technically available. By the close of the 1Q08, 113,000 customers had already joined this plan, 43% of whom had never had wireline services before.

Table 1: Operating Data

FIXED LINE PLANT		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Lines Installed (Thousand)		10,388.5		10,376.5		10,380.1		0.0%		-0.1%
Additional Lines Installed (Thousand)		(34.5)		8.4		3.6		-57.3%		N.A.
Lines in Service - LIS (Thousand)		8,279.6		8,033.9		8,036.3		0.0%		-2.9%
Residential		5,560.3		5,420.2		5,435.2		0.3%		-2.2%
Non-Residential		1,248.7		1,228.2		1,237.3		0.7%		-0.9%
Public Telephones		275.5		281.8		280.3		-0.5%		1.7%
Hybrid Terminals		561.8		440.9		412.0		-6.6%		-26.7%
Other (Including PBX)		633.3		662.8		671.5		1.3%		6.0%
Additional LIS (Thousand)		(138.1)		(30.3)		2.4		N.A.		N.A.
Active Lines (LIS - Blocked Lines)		8,038.5		7,846.1		7,825.6		-0.3%		-2.6%
Blocked Lines		241.1		187.8		210.7		12.2%		-12.6%
Average LIS (Thousand)		8,348.6		8,049.1		8,035.1		-0.2%		-3.8%
LIS/100 Inhabitants		18.8		18.2		18.2		0.0%		-3.2%
Public Telephones/1,000 Inhabitants		6.3		6.4		6.3		-0.5%		1.4%
Public Phones/100 Lines Installed		2.7		2.7		2.7		-0.6%		1.8%
Utilization Rate		79.7%		77.4%		77.4%		0.0 p.p.		-2.3 p.p.

In the 1Q08, Brasil Telecom had 3.6 million local wireline alternative plan lines and 845.100 long-distance wireline alternative plan lines. At the close of the quarter, the share of local alternative plans came to 44.8% of the lines in service as a result of the strategy of approaching the market in an increasingly segmented manner.

Table 2: Alternative Plans

FIXED LINE PLANT		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Alternative Local Plans (thousand)		3,124.3		3,543.0		3,603.8		1.7%		15.3%
Alternative Long Distance Plans (thousand)		616.1		805.9		845.1		4.9%		37.2%

Traffic

The year-on-year decline in traffic was due to the 3.8% reduction in average lines in service in the period and the fact that there were fewer business days in the 1Q08.

VC-1 traffic totaled 670.8 million minutes, 3.1% down year-on-year, chiefly due to the migration from wireline to wireless.

The 5.6% year-on-year decline in long-distance traffic was partially offset by the increase in VC-2 and VC-3 traffic thanks to certain value-added products (the partnership with Big Brother Brasil, for instance).

Brasil Telecom S.A.		Page 4 of 21

---

Table 3: Traffic

TRAFFIC		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Exceeding Local Pulses (Million)		1,433.8		-		-		N.A.		N.A.
Exceeding Minutes (Million)		114.2		2,631.4		2,433.8		-7.5%		N.A.
VC-1 (Million Minutes)		692.3		718.0		670.8		-6.6%		-3.1%
Long Distance Minutes (Million)		1,438.4		1,377.0		1,357.5		-1.4%		-5.6%
Long Distance		1,128.3		1,059.8		992.3		-6.4%		-12.1%
VC-2		168.1		178.5		207.0		16.0%		23.1%
VC-3		141.9		138.8		158.2		14.0%		11.5%
* In the 3Q07, there was the tariff conversion from pulses to minutes for 100% of the clients.

Table 4: Traffic Indicators

INDICATORS - TRAFFIC		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Exceeding Pulses/Average LIS/Month		57.2		0.0		0.0		N.A.		N.A.
Exceeding Minutes/Average LIS/Month		4.6		109.0		101.0		-7.4%		N.A.
DLD Minutes/Average LIS/Month		57.4		57.0		56.3		-1.2%		-1.9%
Fixed-Mobile Minutes/Average LIS/Month		40.0		42.9		43.0		0.3%		7.4%

In the 1Q08, Brasil Telecom maintained its leadership position, recording an average market share of 84.6% in the intra-regional segment and 89.7% in the intra-sector segment. The company’s market share reached 64.3% in the inter-regional segment and increased by 0.2 p.p. in the international segment to 38.8% .

The LD traffic shares hereby presented refer to the traffic originated in Brasil Telecom’s wireline network in its area of concession (Region II of the PGO – General Concession Plan).

Brasil Telecom S.A.		Page 5 of 21

---

MOBILE TELEPHONY

Mobile telephony operations reached 4,577,600 users, or 314,900 net additions in the quarter. BrT Móvel’s client base grew by 25.8% year-on-year.

The mobile client base comprised 829,300 post-paid subscribers (18.1% of BrT Móvel’s clients) and 3,748,200 prepaid subscribers. The decline of 14.2% in the post-paid base was chiefly due to the migration of customers from the hybrid into the prepaid plan.

Gross additions totaled 668,900, 49.6% up on the 1Q07. This result reflects the success of the plans and promotions offered by BrT Móvel and the increased point-of-sale capillarity.

BrT Móvel has maintained its profitable growth strategy, and adopted market practices. Its subscriber acquisition cost (SAC) stood at R$77.6, 20.6%, down on the 1Q07, due to the 51.0% reduction in subsidies mainly as a result of the higher number of prepaid additions compared to post-paid additions.

BrT Móvel’s market share in Region II was 13.7% at the end of the quarter, 0.8 p.p. up on the 1Q07. BrT Móvel sustained its position as the third major operator in terms of market share in the Federal District and the states of GO, TO, MT, AC and RO.

Table 5: Operating Data

Key Operational Data		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Clients (Thousand)		3,638.1		4,262.7		4,577.6		7.4%		25.8%
Post-Paid		967.0		855.8		829.3		-3.1%		-14.2%
Pre-Paid		2,671.1		3,406.9		3,748.2		10.0%		40.3%
Net Additions (Thousand)		261.3		238.9		314.9		31.8%		20.5%
Post-Paid		(26.9)		(1.1)		(26.4)		2408.3%		-1.6%
Pre-Paid		288.2		239.9		341.3		42.3%		18.4%
Gross Additions (Thousand)		447.2		837.2		668.9		-20.1%		49.6%
Post-Paid		65.0		96.4		75.1		-22.1%		15.6%
Pre-Paid		382.2		740.8		593.8		-19.8%		55.4%
Cancellations (Thousand)		185.9		598.3		354.0		-41%		90%
Post-Paid		91.8		97.4		101.5		4.2%		10.6%
Pre-Paid		94.1		500.9		252.5		-49.6%		168.5%
Annualized Churn		21.2%		57.8%		32.0%		-25.7 p.p.		10.8 p.p.
Post-Paid		37.5%		45.5%		48.2%		2.7 p.p.		10.7 p.p.
Pre-Paid		14.9%		61.0%		28.2%		-32.7 p.p.		13.3 p.p.
SAC (R$)		97.8		82.7		77.6		-6.2%		-20.6%
Market Share		12.9%		13.2%		13.7%		0.5 p.p.		0.8 p.p.
Served Localities		830		873		873		0.0%		5.2%
% of Population Covered		87%		87%		88%		0.8 p.p.		0.8 p.p.
Base Stations		2,417		2,642		2,645		0.1%		9.4%
Switches		10		11		11		0.0%		10.0%
Employees		611		616		629		2.1%		2.9%

Brasil Telecom S.A.		Page 6 of 21

---

DATA

In the 1Q08, Brasil Telecom added 69,500 ADSL users to its base, which totaled 1,637,300 at the close of the quarter, up by 18.3% over the 1Q07. ADSL (ADSL/LIS) penetration came to 20.4% in the 1Q08, versus 16.7% in the 1Q07. Moving on with the expansion of the broadband network, Brasil Telecom reached 80% of the municipalities with ADSL coverage, the highest percentage among large operators.

INTERNET SERVICE PROVIDERS

Internet Group, Brasil Telecom’s Internet unit comprising the activities of iG, iBest and BrTurbo, is Brazil’s second largest broadband provider, with 1.3 million clients, 16.2% up on the same period the year before.

Internet Group also has 4 million dial-up clients and is the 4^th largest national portal in terms of audience, with more than 12.1 million residential visitors every month (source: IBOPE – March/08). Considering iG and BrTurbo subscribers, the group maintained its market leadership in Region II.

Brasil Telecom S.A.		Page 7 of 21

---

ECONOMIC-FINANCIAL PERFORMANCE

REVENUE

Table 6: Consolidated Operating Gross Revenue

R$ Million		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
GROSS REVENUES		3,897.1		4,130.2		4,036.1		-2.3%		3.6%
FIXED TELEPHONY		2,824.4		2,852.0		2,779.0		-2.6%		-1.6%
Local Service		1,648.0		1,659.3		1,588.8		-4.2%		-3.6%
Subscription		862.6		909.1		891.2		-2.0%		3.3%
Activation		6.6		3.2		2.3		-26.3%		-64.6%
Local Traffic		302.6		254.7		228.3		-10.4%		-24.5%
VC-1		465.7		487.5		463.0		-5.0%		-0.6%
Lease of Facilities		0.3		0.3		0.3		-0.4%		-4.4%
Other		10.3		4.4		3.7		-17.9%		-64.6%
Public Telephony		129.0		137.8		134.1		-2.7%		3.9%
Long Distance Service		756.3		743.5		763.6		2.7%		1.0%
Intra-Sector		213.9		218.0		206.2		-5.4%		-3.6%
Intra-Region		68.4		63.7		58.4		-8.3%		-14.7%
Inter-Region		60.8		58.6		55.1		-6.0%		-9.4%
International		11.7		11.0		10.0		-9.1%		-14.9%
VC-2		202.6		199.1		216.8		8.9%		7.0%
Fixed Origin		73.7		75.7		74.6		-1.5%		1.2%
Mobile Origin		128.8		123.4		142.2		15.3%		10.4%
VC-3		198.9		193.2		217.1		12.4%		9.2%
Fixed Origin		97.2		95.6		99.4		4.0%		2.2%
Mobile Origin		101.6		97.6		117.7		20.6%		15.8%
Interconnection		85.0		107.8		81.4		-24.5%		-4.2%
Fixed-Fixed		56.7		75.0		51.4		-31.5%		-9.5%
Mobile-Fixed		28.2		32.8		30.0		-8.5%		6.4%
Lease of Means		89.7		95.5		103.6		8.5%		15.5%
Supplementary and Value Added Services		106.3		99.3		99.5		0.2%		-6.4%
Other		10.0		8.8		7.9		-9.8%		-20.9%
MOBILE TELEPHONY		429.7		542.9		466.1		-14.2%		8.5%
Services		377.5		468.1		426.5		-8.9%		13.0%
Subscription		101.4		104.2		97.1		-6.8%		-4.2%
Utilization		109.5		151.5		134.7		-11.1%		23.0%
Additional for Calls Received		1.5		1.8		1.8		-1.1%		14.9%
Roaming		4.8		2.7		3.6		35.5%		-24.3%
Interconnection		139.6		171.7		151.8		-11.6%		8.7%
Other Services		3.5		4.9		3.9		-20.0%		11.2%
Data Communications		17.2		31.4		33.7		7.4%		95.7%
Merchandise Sales (Handsets and Accessories)		52.2		74.8		39.5		-47.2%		-24.2%
DATA COMMUNICATIONS		642.9		735.3		791.0		7.6%		23.0%
Deductions		(1,206.2)		(1,254.1)		(1,274.1)		1.6%		5.6%
% of Gross Revenue		31.0%		30.4%		31.6%		1.2 p.p.		0.6 p.p.
NET REVENUES		2,690.9		2,876.1		2,762.0		-4.0%		2.6%
Net Service Revenues		2,660.2		2,822.8		2,733.9		-3.2%		2.8%
Net Handsets Revenues		30.7		53.3		28.1		-47.2%		-8.4%

Brasil Telecom S.A.		Page 8 of 21

---

Brasil Telecom’s consolidated gross revenue reached R$4,036.1 million in the 1Q08, 3.6% higher than in the 1Q07 thanks to the increased participation of data communication and mobile telephony services in consolidated revenue, as well as to the tariff adjustments of 2.14% in services and 3,29% in VC’s in July last year.

Local service gross revenue totaled R$1,588.8 million, 3.6% down on the 1Q07, chiefly due to the 24.5% drop in gross revenue from local traffic and the decline in the number of subscribers, partially offset by the 3.3% increase in gross subscription revenue.

Gross revenue from public telephony stood at R$134.1 million, 3.9% higher than in the 1Q07, chiefly due to the tariff increase.

Interconnection revenue amounted to R$81.4 million, 4.2% down on the R$85.0 million recorded in the 1Q07 chiefly due to the 18.3% reduction in TU-RL in 2007.

Gross revenue from data communications stood at R$791.0 million, 23.0% up on the 1Q07 mainly as a result of the 18.3% increase in the ADSL client base.

Consolidated mobile telephony gross revenue totaled at R$466.1million , R$426.5 million of which from services and R$39.5 million from the sale of handsets and accessories. Consolidated mobile telephony service gross revenue rose by 13.0% over the 1Q07 due to the expansion of the client base and the launch of new service plans.

Wireline ARPU (excluding data communications) reached R$78.89 , 1.3% up on the 1Q07, reflecting tariff increases. Including data communications, ARPU stood at R$101.35, 6.0% higher than in the 1Q07, thanks to growing ADSL penetration and revenue.

ADSL ARPU came to R$68.92, 3.4% down on the R$71.34 recorded in the 1Q07 due to promotions featuring more aggressive discounts to encourage adhesion to Turbo products.

Brasil Telecom S.A.		Page 9 of 21

---

Mobile telephony ARPU amounted to R$29.80 chiefly due to a change in incoming traffic leading to an estimated impact of approximately R$22 million in net interconnection revenue.

Table 7: Mobile ARPU

R$ Thousand		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
(+) Gross Revenues		541.3		657.0		576.7		-12.2%		6.6%
(-) Handsets		(52.2)		(74.8)		(39.5)		-47.2%		-24.2%
Gross Service Revenues		489.1		582.2		537.2		-7.7%		9.8%
(-) Taxes and Deductions		(134.8)		(152.6)		(139.2)		-8.8%		3.3%
Net Service Revenues		354.3		429.6		398.0		-7.4%		12.3%
Mobile-Mobile Interconnection Fee (Full Bill)		98.4		-		-		-		N.A.
Other Net Service Revenues		255.9		429.6		398.0		-7.4%		55.5%
(-) Roaming		(1.8)		0.6		(1.0)		N.A.		-43.9%
Net Quarterly Revenues		352.5		430.2		397.0		-7.7%		12.6%
Net Monthly Revenues		117.5		143.4		132.3		-7.7%		12.6%
Average Number of Clients		3,514.0		4,140.6		4,439.6		7.2%		26.3%
ARPU (R$)		33.43		34.63		29.80		-13.9%		-10.9%
Post-Paid ARPU (R$)		47.18		55.80		54.52		-2.3%		15.6%
Pre-Paid ARPU (R$)		28.11		29.13		24.07		-17.4%		-14.4%

Brasil Telecom S.A.		Page 10 of 21

---

COSTS AND EXPENSES

Table 8: Consolidated Operating Costs and Expenses

R$ Million		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
GROSS REVENUES		3,897.1		4,130.2		4,036.1		-2.3%		3.6%
Deductions		(1,206.2)		(1,254.1)		(1,274.1)		1.6%		5.6%
NET REVENUES		2,690.9		2,876.1		2,762.0		-4.0%		2.6%
Costs		(1,612.3)		(1,627.7)		(1,555.7)		-4.4%		-3.5%
Personnel		(40.1)		(60.8)		(93.2)		53.1%		132.0%
Materials		(69.5)		(91.1)		(63.4)		-30.5%		-8.8%
Subcontracted Services		(815.2)		(846.5)		(801.9)		-5.3%		-1.6%
Interconnection		(576.5)		(613.9)		(563.6)		-8.2%		-2.2%
Other		(238.7)		(232.7)		(238.3)		2.4%		-0.2%
Depreciation and Amortization		(541.8)		(476.8)		(444.4)		-6.8%		-18.0%
Other		(145.6)		(152.4)		(152.9)		0.3%		5.0%
GROSS PROFIT		1,078.6		1,248.4		1,206.2		-3.4%		11.8%
Sales Expenses		(273.6)		(303.6)		(245.1)		-19.3%		-10.4%
Personnel		(60.2)		(64.9)		(62.0)		-4.4%		2.9%
Materials		(6.8)		(15.9)		(11.3)		-28.6%		65.5%
Subcontracted Services		(175.1)		(199.7)		(144.5)		-27.6%		-17.5%
Advertising and Marketing		(24.8)		(64.8)		(42.4)		-34.6%		71.0%
Other		(150.3)		(135.0)		(102.1)		-24.3%		-32.0%
Depreciation and Amortization		(4.8)		(4.8)		(4.6)		-4.3%		-2.9%
Other		(26.7)		(18.3)		(22.7)		23.7%		-14.9%
General and Administrative Expenses		(199.2)		(226.7)		(221.8)		-2.2%		11.4%
Personnel		(43.9)		(48.6)		(52.9)		8.9%		20.5%
Materials		(0.6)		(1.1)		(0.5)		-50.6%		-10.6%
Subcontracted Services		(146.5)		(168.3)		(158.4)		-5.9%		8.1%
Depreciation and Amortization		(6.3)		(6.2)		(7.2)		16.4%		14.5%
Other		(1.9)		(2.7)		(2.8)		6.6%		47.1%
Information Technology		(116.0)		(136.2)		(128.6)		-5.6%		10.8%
Personnel		(6.0)		(6.6)		(7.6)		15.7%		27.2%
Materials		(0.3)		(0.2)		(0.2)		-9.7%		-33.8%
Subcontracted Services		(27.0)		(45.4)		(40.3)		-11.2%		49.2%
Depreciation and Amortization		(77.0)		(74.6)		(70.7)		-5.3%		-8.2%
Other		(5.7)		(9.4)		(9.7)		3.9%		71.0%
Provisions and Losses		(218.2)		(297.2)		(278.9)		-6.2%		27.8%
Doubtful Accounts		(95.7)		(83.8)		(119.8)		43.0%		25.2%
Contingencies		(122.5)		(213.3)		(159.0)		-25.5%		29.8%
Other Operating Revenues (Exp.)		35.3		38.8		39.5		1.9%		11.8%
Goodwill Amortization		(19.4)		(22.0)		(17.8)		-19.1%		-8.1%
Other		54.7		60.8		57.3		-5.7%		4.8%
EARNINGS BEFORE FINANCIAL RESULT (EBIT)		306.9		323.5		371.3		14.8%		21.0%
R$ Million		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
OPERATING COSTS AND EXPENSES		(2,383.9)		(2,552.6)		(2,390.6)		-6.3%		0.3%
Personnel		(150.2)		(180.8)		(215.6)		19.2%		43.5%
Materials		(77.3)		(108.3)		(75.4)		-30.3%		-2.4%
Subcontracted Services		(562.6)		(581.3)		(539.2)		-7.2%		-4.2%
Interconnection		(576.5)		(613.9)		(563.6)		-8.2%		-2.2%
Advertising and Marketing		(24.8)		(64.8)		(42.4)		-34.6%		71.0%
Provisions and Losses		(218.2)		(297.2)		(278.9)		-6.2%		27.8%
Other		(125.1)		(122.0)		(130.8)		7.3%		4.6%
Depreciation and Amortization		(649.2)		(584.4)		(544.7)		-6.8%		-16.1%

Brasil Telecom S.A.		Page 11 of 21

---

Personnel costs and expenses came to R$215.6 million, 43.5% up on the 1Q07. This increase was chiefly due to the internalization of the call center in late 2007, the collective wage increase and labor charges resulting from the downsizing and outsourcing of plant maintenance operations. At the end of the quarter, the BrT group had 16,578 employees, 5,125 of whom in the wireline, data and Internet provider segments, 629 in BrT Móvel and 10,824 in the call center.

Table 9: Personnel

EMPLOYEES		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
# of Employees - Call Center		-		10,866		10,824		-0.4%		N.A.
# of Employees - Fixed Telephony		5,227		5,287		5,125		-3.1%		-2.0%
# of Employees - Mobile Telephony		611		616		629		2.1%		2.9%

Material costs and expenses came to R$75.4 million, down by 2.4% on the 1Q07, due to the reduction in the cost of goods sold despite the increase in the number of handsets sold.

Third-party costs and expenses, excluding interconnection, advertising and marketing, totaled R$ 539.2 million, 4.2% down the 1Q07, chiefly due to the reduction of R$64 million in the call center line after the internalization in late 2007. This reduction was offset by an increase of R$24.8 million in variable costs related to the operations and R$13.0 million in business consultancy services.

Advertising and marketing expenses totaled R$42.4 million in the 1Q08, R$17.6 million higher than in the 1Q07 due to the quarter’s new product launch campaigns, including Pluri and value-added services (for example, the partnership with Big Brother), in addition to campaigns for the new positioning of iG.

In the 1Q08, provisions for contingencies totaled R$159.0 million, R$36.5 million higher than in the 1Q07, basically due to the tax, civil and labor contingences.

Brasil Telecom S.A.		Page 12 of 21

---

The ratio between losses on accounts receivable and gross revenue reached 3.0%, totaling R$119.8 million, 0.5 p.p. up on the 2.5% recorded in the 1Q07 due to the extension of bill maturities and the respective provisions caused by the postal service strike in the 4Q07 and the increase in co-billing default.

Table 10: Consolidated Accounts Receivable

		1Q07		4Q07		1Q08
Total (R$ Million)		2,522.7		2,565.1		2,631.2
Due		62.9%		65.6%		65.1%
Overdue (up to 30 days)		16.3%		15.2%		15.3%
Overdue (between 31-60 days)		5.9%		4.9%		5.2%
Overdue (between 61-90 days)		3.9%		3.4%		3.2%
Overdue (more than 90 days)		11.0%		10.9%		11.2%

Depreciation and amortization costs totaled R$544.7 million, 16.1% down on the 1Q07 due to the increase in fully depreciated items.

Other operating costs and expenses stood at R$130.8 million¸ 4.6% higher than in the 1Q07, mainly due to the updted of actuarial provisions.

EBITDA

Brasil Telecom’s consolidated EBITDA totaled R$916.0 million in the 1Q08, versus R$956.2 million in the 1Q07. The consolidated EBITDA margin stood at 33.2% in the 1Q08, vis-à-vis 35.5% in the 1Q07.

Brasil Telecom Móvel’s quarterly EBITDA stood at R$14.7 million, 236.3% up on the 1Q07. It was accompanied by an EBITDA margin of 3.4% .

FINANCIAL RESULT

Table 11: Consolidated Financial Result

R$ Million		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Financial Revenue		107.4		132.8		175.2		32.0%		63.2%
Local Currency		107.3		136.8		173.2		26.6%		61.4%
Foreign Currency		0.1		(4.0)		2.0		-150.7%		N.A.
Financial Expenses		(207.3)		(172.9)		(177.5)		2.6%		-14.4%
Local Currency		(182.7)		(153.5)		(150.1)		-2.2%		-17.9%
Foreign Currency		(24.5)		(19.4)		(27.4)		40.9%		11.6%
Interest on Equity		(245.0)		(105.4)		(245.0)		N.A.		N.A.
Financial Result		(344.9)		(145.5)		(247.2)		69.9%		-28.3%

Brasil Telecom's financial result was an expense of R$247.2 million, versus an expense of R$344.9 million in the 1Q07. Excluding the effect of interest on equity, the financial result recorded a positive variation of R$97.7 million chiefly due to (i) lower indebtedness, leading to lower financial expenses in local currency and (ii) the financial income, in the amount of R$65,5 million, resulting from taxes held in Judicial Deposits won by the Company.

Brasil Telecom S.A.		Page 13 of 21

---

NET INCOME

Brasil Telecom’s net income stood at R$321.4 million in the 1Q08, equivalent to R$0.5871 per share, and net earnings per ADR came to US$1.0070. In the 1Q07, net income totaled R$214.0 million, equivalent to R$0.3910 per 1,000 shares, while earnings per ADR stood at US$0.6379.

INDEBTEDNESS

Table 12: Indebtedness

Debt (R$ Million)		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Short Term		1,459.0		496.8		514.2		3.5%		-64.8%
In R$		1,196.4		255.0		284.0		11.4%		-76.3%
In US$		15.1		23.2		12.8		-44.8%		-15.5%
In Yen		75.6		70.9		76.2		7.5%		0.9%
In Currency Basket		60.6		28.7		28.5		-0.8%		-53.0%
Hedge Adjustment		111.3		119.0		112.7		-5.3%		1.3%
Long Term		3,608.7		3,886.6		3,830.1		-1.5%		6.1%
In R$		2,562.7		2,998.7		3,043.5		1.5%		18.8%
In US$		435.3		371.8		363.2		-2.3%		-16.6%
In Yen		225.6		171.0		151.4		-11.5%		-32.9%
In Currency Basket		100.8		66.0		58.5		-11.3%		-41.9%
Hedge Adjustment		284.3		279.1		213.5		-23.5%		-24.9%
Total Debt		5,067.7		4,383.4		4,344.3		-0.9%		-14.3%
(-) Cash		2,478.6		2,377.0		2,087.7		-12.2%		-15.8%
(-) Temporary Investments		-		-		201.2		N.A.		N.A.
(-) Governament Title		-		53.6		54.9		N.A.		N.A.
Net Debt		2,589.1		1,952.8		2,000.5		2.4%		-22.7%

At the end of the quarter, Brasil Telecom’s consolidated net debt totaled R$2,000.5 million, 22.7% lower than in the same period the year before chiefly due to period cash flow, the amortization of debentures in the amount of R$ 500 million in April 2007 and the appreciation of the Brazilian Real, which reduced the foreign-currency-denominated debt.

At the end of the 1Q08, debt linked to the exchange rate variation, excluding hedge adjustments, totaled R$690.6 million. On March 31, 2008, 53.4% of the debt linked to the exchange rate variation was hedged, leading to a total exposure of only 8.0%.

Brasil Telecom S.A.		Page 14 of 21

---

Table 13: Indebtedness

Description	Currency		Annual Cost		Maturity				R$ Million				Long Term %
							Total		Short Term		Long Term
Foreign Currency
Financial Institutions I	US$		Lib6+0.5%		jul/08 - jul/13		20.9		8.2		12.7		60.8%
Bonds - US$200 MM	US$		9.38%		Feb-14		354.3		4.5		349.8		98.7%
Financial Institutions II	Yen		Jibor6 + 1.92%		Mar-11		227.3		75.9		151.4		66.6%
Financial Institutions III	Yen		3.36%		Feb-09		0.4		0.4		(0.0)		0.0%
Suppliers I	US$		1.75%		Feb-14		0.8		0.1		0.6		83.1%
Foreign Currency Total							603.6		89.0		514.6		85.3%
Local Currency
BRB - Fixed Line	R$		2.43%		Dec-33		6.2		0.0		6.1		99.4%
BRB - GSM	R$		2.43%		Dec-33		20.0		0.1		19.8		99.4%
BNDES	UMBNDES		5.50%		Apr-11		87.0		28.5		58.5		67.3%
Public Debenture 4th Emission	R$		104% do CDI		Jun-13		1,118.2		38.2		1,080.0		96.6%
FCO II	R$		11.50%		Apr-11		23.3		7.7		15.6		67.0%
BNDES	R$		TJLP + 5,5%		Feb-11		637.6		220.4		417.2		65.4%
BNDES	R$		TJLP + 2,3%		May-14		30.5		0.3		30.2		99.0%
BNDES	R$		TJLP + 4,3%		May-14		1,391.4		16.9		1,374.5		98.8%
BNDES GSM	R$		TJLP + 3,5%		Sep-17		100.4		0.4		100.0		99.6%
Local Currency Total							3,414.5		312.4		3,102.0		90.9%
Total Debt before Hedge Adjustments							4,018.1		401.4		3,616.6		90.0%
Hedge Adjustments							326.2		112.7		213.5		65.4%
TOTAL DEBT							4,344.3		514.2		3,830.1		88.2%

Table 14: Long Term Debt Amortization Schedule

Maturity	% Long Term Debt
2009	11.8%
2010	19.0%
2011	20.7%
2012	17.1%
2013	17.1%
2014	12.6%
> 2015	1.7%

Brasil Telecom S.A.		Page 15 of 21

---

CAPEX

Table 15: Investments Breakdown

R$ Million		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Network Expansion		48.0		141.0		38.5		-72.7%		-19.7%
Conventional Telephony		1.9		1.1		(0.3)		N.A.		N.A.
Transmission Backbone		7.6		32.7		5.3		-83.7%		-30.1%
Data Network		38.5		85.7		30.6		-64.3%		-20.4%
Intelligent Network		0.1		6.5		0.7		-88.6%		670.2%
Network Management Systems		0.5		9.4		2.3		-76.0%		334.3%
Other Investments for Network Expansion		(0.7)		5.5		(0.1)		N.A.		-80.4%
Network Operation		48.9		66.5		46.9		-29.5%		-4.0%
Public Telephony		0.9		(1.0)		0.5		N.A.		-40.5%
Information Technology		8.2		74.9		3.8		-94.9%		-54.0%
Expansion Personnel		18.7		21.1		20.9		-0.9%		12.2%
Others		22.6		153.7		34.6		-77.5%		53.1%
Expansion Financial Expenses		1.2		6.2		5.1		-17.8%		319.1%
TOTAL - FIXED LINE TELEPHONY		148.5		462.5		150.5		-67.5%		1.3%
TOTAL - MOBILE TELEPHONY		4.3		146.4		9.4		-93.6%		119.8%
TOTAL INVESTMENT		152.8		608.8		159.9		-73.7%		4.6%
CASH FLOW CONCILIATION		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
Variation of Economic and Financial Investment		225.2		(244.0)		145.5		N.A.		-35.4%
INVESTMENT CASH FLOW		378.0		364.8		305.4		-16.3%		-19.2%

CAPEX totaled R$159.9 million in the 1Q08, R$150.5 million of which was invested in wireline, including voice, data and IT, as well as regulatory issues and R$9.4 million in mobile telephony. CAPEX increased by 4.6% year-on-year.

GUIDANCE

Brasil Telecom disclosed its guidance for 2008 at its Investors’ Day, held in Brasília on April 2, 2008 with live webcast in English and Portuguese. The video for the event is available on Brasil Telecom’s Investor Relations website (www.brasiltelecom.com.br/ir).

The goals refer to the indicators of Brasil Telecom Participações S.A. and are reiterated in the tables below:

Operating Data (thousand)		2006		2007		Guidance 2008  Range
Lines in Service (LIS)		8,418		8,034		Stable
Broadband Users		1,318		1,568		~ +22%
Mobile Users		3,377		4,263		~ +30%

Brasil Telecom S.A.		Page 16 of 21

---

Economic-Financial Data (R$ million)		2006		2007		Guidance 2008  Range
Operating Net Revenue		10,297		11,059		~+3.4%
Operating Costs and Expenses		(6,803)		(7,262)		~+2.8%
Consolidated EBITDA		3,494		3,797		~ +4.5%
Mobile Operation EBITDA		(142)		54		~ +200%
CAPEX (R$ million)		2006		2007		Guidance 2008  Range
Operational / Regulatory / 3G						1,700
3G License		-		-		500
Total						2,200

The guidance for the ARPU of our mobile operations was revised as follows:

ARPU (R$)		2006		2007		Guidance 2008  Range
Wireline		71.12		78.97		~ -5%
ADSL		67.10		71.70		Stable
Mobile		31.30		34.20		~ -7%

STOCK MARKET

At the end of the 1Q08, Brasil Telecom S.A.’s market capitalization, calculated by weighing the price of common and preferred shares, totaled R$15,993.0 million, up by 51.1% on the R$10,585.4 million recorded on March 31, 2007.

In the last twelve months, preferred shares (BRTO4) rose by 79.5% and common shares (BRTO3) increased by 37.9% . In the same period, the Ibovespa and the Itel appreciated by 33.1% and 31.0%, respectively.

Brasil Telecom S.A.’s ADR (BTM) moved up by 79.2% in the last twelve months, while the Dow Jones index depreciated by 0.7% . In the last 24 months, BTM outperformed the Dow Jones by 75.2 p.p.

Table 16: Stock Market Performance

		Closing Price as of				Performance
		3/31/2008		In 1Q08		In 12 Months		In 24 Months
Common Shares (BRTO3) (in R$/shares)		40.00		28.6%		37.9%		110.5%
Preferred Shares (BRTO4) (in R$/shares)		19.30		5.8%		79.5%		89.3%
ADR (BTM) (in US$/ADR)		57.27		6.1%		79.2%		85.6%
IBOVESPA (points)		60,968		-4.6%		33.1%		60.6%
ITEL (points)		1,319		7.8%		31.0%		35.9%
IGC (points)		6,116		-10.1%		14.8%		44.3%
Dow Jones (points)		12,263		-7.6%		-0.7%		10.4%
Market Capitalization (Million)		15,993.0		19.0%		51.1%		102.0%

Brasil Telecom S.A.		Page 17 of 21

---

Table 17: Theoretical Portfolio Weighting – Jan / April

		Ibovespa		Itel		IGC
BRTO3		-		-		0.008%
BRTO4		0.843%		9.610%		0.334%

OWNERSHIP BREAKDOWN

Table 18: Shareholding Structure

Mar/08		Common Shares		%		Preferred Shares		%		Total Shares		%
Brasil Telecom Participações		247,317,180		99.1%		120,911,021		38.8%		368,228,201		65.6%
ADR Free Float		-		0.0%		30,491,565		9.8%		30,491,565		5.4%
Treasury		-		0.0%		13,572,523		4.4%		13,572,523		2.4%
Free Float at Bovespa		2,279,869		0.9%		146,378,131		47.0%		148,658,000		26.5%
Total		249,597,049		100.0%		311,353,240		100.0%		560,950,289		100.0%
Mar/07		Common Shares		%		Preferred Shares		%		Total Shares		%
Brasil Telecom Participações		247,276,380,758		99.1%		120,911,021,299		38.8%		368,187,402,057		65.6%
ADR Free Float		-		0.0%		21,929,454,000		7.0%		21,929,454,000		3.9%
Treasury		-		0.0%		13,678,100,000		4.4%		13,678,100,000		2.4%
Free Float at Bovespa		2,320,668,784		0.9%		154,834,665,558		49.7%		157,155,334,342		28.0%
Total		249,597,049,542		100.0%		311,353,240,857		100.0%		560,950,290,399		100.0%

* The share grouping for Brasil Telecom S.A. was approved in the Extraordinary Shareholders Meeting on April 27^th 2007 in the proportion of 1,000 shares to 1 share of the respective kind.

UPCOMING EVENTS

EnglishConference Call and Webcast: 1Q08 Results
Connection number: (+1 973) 935-8893
Access Code: 42645064
Link: http://www.brasiltelecom.com.br/ir
Date: April 23, 2008
Time: 11:00 a.m. (New York time)

Brasil Telecom S.A.		Page 18 of 21

---

ATTACHMENTS

Table 19: Consolidated Balance Sheet

R$ Million		Mar/07		Dec/07		Mar/08
CURRENT ASSETS		6,071.1		5,950.5		6,236.8
Cash, Bank Accounts and High-liquid Investments		2,478.6		2,377.0		2,087.7
Temporary Investments		-		-		201.2
Governament Title		-		53.6		54.9
Accounts Receivables (Net)		2,157.7		2,189.7		2,221.2
Deferred and Recoverable Taxes		1,014.5		790.8		1,003.4
Other Recoverable Amounts		262.7		453.1		512.3
Inventory		49.1		32.7		37.9
Contractual Retentions		-		-		-
Other		108.5		53.6		118.2
LONG TERM ASSETS		1,952.0		2,620.3		2,874.4
Loans and Financing		0.8		6.2		6.0
Deferred and Recoverable Taxes		1,383.8		1,452.0		1,479.0
Other		567.4		1,162.1		1,389.4
PERMANENT ASSETS		7,642.8		7,005.0		6,611.9
Investment (Net)		286.8		181.1		156.2
Property, Plant and Equipment (Net)		6,085.4		5,663.4		5,304.0
Property, Plant and Equipment (Gross)		26,076.7		26,922.1		26,956.0
Accumulated Depreciation		(19,991.2)		(21,258.7)		(21,652.0)
Intangible (Net)		1,150.4		1,049.6		1,049.5
Property, Plant and Equipment (Gross)		2,412.7		2,561.2		2,650.0
Accumulated Depreciation		(1,262.3)		(1,511.7)		(1,600.5)
Deferred Assets (Net)		120.2		111.0		102.2
TOTAL ASSETS		15,665.9		15,575.7		15,723.1
CURRENT LIABILITIES		4,978.0		4,377.5		4,448.9
Loans and Financing		1,459.0		496.8		514.2
Suppliers		1,264.9		1,482.6		1,376.1
Taxes and Contributions		904.2		832.2		858.8
Dividends Payable		627.5		764.8		974.3
Provisions		220.7		298.9		257.6
Salaries and Benefits		96.2		171.7		120.0
Consignment for Third Parties		121.1		131.9		116.8
Authorization for Services Exploration		154.7		78.8		100.0
Other		129.7		119.8		131.1
LONG TERM LIABILITIES		5,179.2		5,613.9		5,612.6
Loans and Financing		3,608.6		3,886.6		3,830.1
Provisions		1,182.4		1,281.5		1,287.8
Taxes and Contributions		70.4		162.7		197.9
Authorization for Services Exploration		226.1		174.6		183.3
Other		91.6		108.4		113.5
DEFERRED INCOME		-		-		-
MINORITY INTEREST		11.4		8.5		7.6
SHAREHOLDERS' EQUITY		5,497.3		5,575.9		5,654.0
Capital Stock		3,470.8		3,470.8		3,470.8
Capital Reserves		1,482.6		1,482.6		1,483.2
Profit Reserves		309.3		349.2		349.2
Retained Earnings		389.3		428.1		504.4
Treasury Shares		(154.7)		(154.7)		(153.5)
TOTAL LIABILITIES		15,665.9		15,575.7		15,723.1
* In compliance with CVM Deliberation 488 and 489 the line of Intangible Permanent Asset was created

Brasil Telecom S.A.		Page 19 of 21

---

Table 20: Consolidated Cash Flow

R$ Million		1Q07		4Q07		1Q08		D Quarter		D 12 Mooths
OPERATING ACTIVITIES
(+) Net Income of the Period		214.0		211.4		321.4		52.0%		50.2%
(+) Minority Participation		(0.6)		(0.5)		(0.8)		0.5		40.1%
(+) Items with no Cash Effects		801.0		775.6		767.2		(0.0)		-4.2%
Depreciation and Amortization		649.4		584.4		544.7		-7%		-16.1%
Losses with Accounts Receivables		95.7		83.8		119.8		43.0%		25.2%
Provision for Contingencies		122.5		213.4		159.0		-25.5%		29.8%
Provision for Pension Funds		11.7		(3.8)		32.7		N.A.		179.0%
Deferred Taxes		(78.3)		(122.7)		(88.1)		-28.2%		12.5%
Results from the Write-off of Permanent Assets		-		20.5		(0.9)		N.A.		N.A.
(-) Equity Changes		(379.2)		(278.0)		(551.4)		98.3%		45.4%
Clients' Accounts Receivable		(125.8)		(15.9)		(151.3)		N.A.		20.3%
Inventories		15.1		5.8		(5.2)		N.A.		N.A.
Contract Retentions		-		-		-		N.A.		N.A.
Personnel, Charges and Social Benefits		(2.3)		(16.8)		5.6		N.A.		N.A.
Accounts Payable and Provisioned Expenses		53.7		(98.2)		29.8		N.A.		-44.5%
Taxes		(80.8)		12.8		(160.5)		N.A.		98.7%
Financial Expenses		(38.8)		(24.9)		(33.0)		32.8%		-14.9%
Authorization for Services Exploration		25.3		(52.6)		29.8		N.A.		17.7%
Provision for Contingencies		(96.1)		(132.9)		(55.7)		-58.1%		-42.1%
Provision for Pension Funds		(9.3)		16.0		(77.8)		N.A.		N.A.
Other Assets and Liabilities' Accounts		(120.2)		28.6		(133.1)		N.A.		10.7%
(=) Cash Flow from Operating Activities		635.2		708.4		536.4		-24.3%		-15.6%
INVESTMENT ACTIVITIES
Temporary Investments		89.4		151.6		(202.8)		N.A.		N.A.
Funds from Sales of Permanent Assets		0.1		45.4		8.7		-80.9%		N.A.
Court Deposits		(140.5)		(166.7)		(320.1)		92.0%		127.8%
Investments in Permanent Assets		(378.0)		(364.8)		(305.4)		-16.3%		-19.2%
(=) Cash Flow from Investment Activities		(429.0)		(334.4)		(819.6)		145.1%		91.0%
FINANCING ACTIVITIES
Dividens/Interests on Equity paid in the Period		(0.4)		(0.2)		(0.6)		179.2%		49.2%
Loans and Financing		(268.8)		399.1		(5.6)		N.A.		-97.9%
Loans Obtained		-		600.9		100.0		N.A.		N.A.
Loans Paid		(268.8)		(201.8)		(105.6)		-47.7%		-60.7%
(=) Cash Flow from Financing Activities		(269.2)		398.9		(6.2)		N.A.		-97.7%
CASH FLOW OF THE PERIOD		(63.0)		772.9		(289.4)		N.A.		359.1%
CASH, BANK ACCOUNTS and HIGH-LIQUID INVESTMENTS
Current Balance		2,478.6		2,377.0		2,087.7		-12.2%		-15.8%
Previous Balance		2,541.6		1,604.1		2,377.0		48.2%		-6.5%
Variation		(63.0)		772.9		(289.4)		N.A.		359.3%
OPERATING CASH FLOW		635.2		708.4		536.4		-24.3%		-15.6%
(+) Investments on Permanent Assets (includes Investment Suppliers)		(378.0)		(364.8)		(305.4)		-16.3%		-19.2%
(=) FREE CASH FLOW		257.2		343.7		231.0		-32.8%		-10.2%
SUPLEMENTARY INFORMATION TO THE CASH FLOW
Income and Social Contribution Taxes Paid		52.8		149.6		108.2		-27.7%		1.1
Interest Paid on Loans and Financing		166.5		112.4		81.0		-28.0%		-51.4%

Brasil Telecom S.A.		Page 20 of 21

---

GLOSSARY

ADSL: Asymmetrical Digital Subscriber Line. System that allows broadband signal transmission through metallic telephone cables. It is the most common DSL technology, which represents a midway transition to fully optical networks.

ARPU: Average Revenue per User, an indicator used in the telecom industry.

CAPEX: Capital Expenditure. The investments made by a company.

EBITDA: Earnings before Interest, Tax, Depreciation and Amortization.

GSM: Global System for Mobile communications. GSM is the world’s most widely used mobile telephony technology and allows users to move around freely and easily with their handsets. The price of GSM handsets is also more attractive, the network is safer and there are constant technological advances.

IoE (Interest on Equity): Shareholder remuneration option, calculated on shareholders’ equity and limited, for tax purposes, to the variation in the long-term interest rate (TJLP). The tax benefit is due to the reduction in the calculation base used for income tax and social contribution tax on net income, given that interest on equity represents a deductible expense in the calculation of these taxes. IoE payments are subject to withholding tax at 15%. Interest on equity may be paid as part of statutory dividends, net of withholding tax.

LIS: Lines in Service. All the lines in a network that are effectively being used.

SAC: Subscriber Acquisition Cost, the average amount spent by a company to acquire a new subscriber.

TUP: Public Phones.

FINANCIAL LEVERAGE RATIO: Net Debt / EBITDA

This document contains forward-looking statements. Such statements do not constitute facts occurred in the past and reflect the expectations of the Company's managers only. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans", "predicts," "projects" and "aims", as well as other similar words, are intended to identify those forward-looking statements, which obviously involve risks or uncertainties predicted or not by the Company. Accordingly, the future results of the Company’s operations may differ from the current expectations, and the reader should not rely exclusively on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.

Brasil Telecom S.A.		Page 21 of 21

---

 

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

---