Multicanal Participacoes S.A.
Ticker: MPAR Av. Rio Branco, 1-6 Andar
Exchange: NASDAQ-National Market Rio de Janeiro, Foreign 20090
Industry: Service

Type of Shares:American Depositary Receipts Filing Date:10/9/96
U.S. Shares:8,307,692 Offer Date:10/31/96
Non-U.S. Shares:5,538,461 Filing Range:$12.00 - $14.00
Primary Shares:7,692,307 Offer Price:$14.00
Secondary Shares:6,153,846 Gross Spread:$0.60
Offering Amount: $179,999,989 Selling:$0.35
Expenses:$1,200,000 Reallowance:$0.10
Shares Out After:100,000,000

ManagerTierPhone
Morgan Stanley & Co. IncorporatedLead Manager (212) 703-4797
Lazard Freres & Co.Co-manager (212) 632-3000
Merrill Lynch & Co.Co-manager (212) 449-4600

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$67.74$62.70$25.23Assets:$483.78
Net Income:-$18.09-$14.16-$4.81Liabilities:$317.57
EPS:-$0.05-$0.02-$0.02Equity:$166.21

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is the largest cable television operator in Brazil, measured in terms of total subscribers, equity subscribers, homes passed and network mileage. The markets served by cable television systems in which the company has an interest include Sao Paulo (market population 10.0 million), Rio de Janeiro (market population 5.5 million) and Belo Horizonte (market population 2.0 million), Brazil's three largest cities. The company presently holds a 99.6% ownership interest in Multicanal Cabo, which owns and operates ten cable television systems, a 100% ownership interest in Multicanal BH, which operates the Belo Horizonte cable television system, and strategic minority investments in the Multicanal Florianopolis, Net Rio and Rio Cabo cable television systems. Together, these cable television systems pass approximately 1,619,800 total homes and serve approximately 555,800total subscribers. Included in such subscriber information are 85,426 total backlog subscribers that have paid significant sign-on and hookup fees, but as of June 30, 1996, had not been connected to their networks.

Use of Proceeds
The proceeds from the proposed offering will be used to fund extension of the company's cable network buildout in its existing licensed service areas and upgrade the cable network architecture in three other cable systems.

Last updated: 12/8/96

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