Telesp Celular Announces Change in First Nine Months1999 Net Income.

SAO PAULO, Brazil--(BUSINESS WIRE)--Nov. 17, 1999--

Telesp Celular S.A. (BOVESPA:TSPC3 (Ord), TSPC6 (Pref)), Sao Paulo State's largest cellular operator, and its controlling holding company Telesp Celular Participacoes S.A., (NYSE:TCP)(BOVESPA:TSPP3 (Ord), TSPP4 (Pref)) ("TCP"), today

The effects of said Provisional Decree should be incorporated in the first nine months 1999 financial statements, which were released by Telesp Celular on October 21, 1999.

As a consequence of these required changes, credits from deferred social contribution taxes, which are based on pre-tax profit, were reduced by R$6,230 thousand (R$4,448 thousand for TCP), leading to a drop in net income for the period ending September 30, 1999 of the same amount. The remaining financial items disclosed in the October 21, 1999 release were not subject to changes.

Telesp Celular Participacoes, which spun-off from Telebras in July 1998, is the principal cellular telecommunications provider in the State of Sao Paulo in Brazil. Telesp Celular Participacoes' Common and Preferred shares trade on BOVESPA, the Sao Paulo Stock Exchange, and its ADRs, each equal to 2,500 preferred shares, trade on the New York Stock Exchange. Information may be accessed on Bloomberg under the symbol TCP and on the Reuters 2000 Service under the symbols TSPP3.SA and TSPP4.SA