Brasil Telecom and Claxson Launch VOD Service for Broadband Through This Agreement, Broadband Users in Brazil Will Have Access to the Best Multimedia Content Including Fox Sports Latin America and Its Copa Libertadores Soccer Event, Playboy TV Latin America & Iberia Programming, Backstage Productions of Playboy Magazine and the Very Best of Claxson's Pay Television Programming SAO PAULO, Brazil, Oct. 19 /PRNewswire-FirstCall/ -- Brasil Telecom (BOVESPA: BRT03/BRT04)(NYSE:BTM), the second-largest broadband company in Latin America and one of the largest telecommunications companies in Brazil, and Claxson (OTC:XSON) (BULLETIN BOARD: XSON) , a multimedia company providing branded entertainment content to Spanish and Portuguese speakers around the world, launched in Brazil the Turbo Video VOD (Video on Demand) service on the ESDC (El Sitio Digital Channel) platform, one of the leading broadband platforms in Latin America developed by Claxson. At the Futurecom trade show in Florianopolis, Brazil, both companies will be showcasing Turbo Video, which will become available to Brasil Telecom broadband users. Through this agreement, Brasil Telecom users will have access to the digital content offered in the ESDC digital platform through different packages: the best of Fox Sports Latin America, one of the leading sports networks in the region, featuring, among other things, the Copa Libertadores and daily sports news updates; the most sensual productions of Playboy TV Latin America & Iberia; backstage access to Playboy magazine photo shoots; Claxson's pay television programming, including MuchMusic Canada, MuchMusic Argentina, Fashion TV, Infinito, Venus movies and a selection of classic films featured in the Retro and Space channels. The offer also includes the contents of Utilisima, a channel that targets women in the rest of Latin America and is now available in Brazil. The availability of the Playboy content is based on a marketing and distribution agreement signed between Editorial Abril and Claxson. According to the Marketing Director at Brasil Telecom, Carlos Costa Pinto, "the service will be offered as a monthly subscription, with several different packages, or on demand, where the user only pays for what is accessed. The content featured is extremely varied, including movies, fashion, music, sports and adult content." Roberto Cibrian, senior vice president of the Broadband and Internet Division at Claxson and responsible for the ESDC operations said, "It's an honor to partner with Brasil Telecom, a company of such relevance and prestige which trusted in our products to materialize its Internet broadband efforts. This agreement opens the doors for the future expansion of our company in Brazil, where we already count on Marcos Galassi of NexTVision, a strategic and knowledgeable ally in IP technology, for the development of our IP television platform." Founded in 2004 by Marcos Galassi, NexTVision is the first Brazilian company to develop technology for the distribution of interactive contents through IP networks, including operating systems, applications for setup-boxes and program management systems. Recently, NexTVision signed an exclusivity agreement for the distribution of all of Claxson's digital content in Brazil, including those represented by its ESDC division such as games, online communities, and other products developed by that company. NexTVision also represents the Discovery Channel School brand for IP media distribution. The Brasil Telecom and Claxson agreement will allow the operator's broadband users to access three different digital content packages, tailored to their preferences, including the option to rent movies. In addition, the 250,000 subscribers of BR Turbo, Brasil Telecom's portal, will be able to enjoy a special discount for this service. About Brasil Telecom Brazil Telecom provides fixed telephone services in local, national and international long distance calls throughout the country, as a concessionary in the region II, which includes the Brazilian states of Acre, Rondonia, Tocantins, Goias, Mato Grosso, Mato Grosso do Sul, Parana, Santa Catarina e Rio Grande do Sul as well as the Federal District. The company also has authorization to provide those services in the remaining Brazilian regions and international long distance services all over the country. By using its SRTT authorization, Brazil Telecom provides data communication and enterprise network services in the region II, extending such services locally and internationally, through the partnership with its allied companies. Through its subsidiary, Brazil Telecom GSM, the Brazil Telecom also provides mobile phone services throughout the region II. Nowadays, Brazil Telecom provides data center services through its Cyber Data Centers located in Porto Alegre, Curitiba, Sao Paulo and Brasilia -- it serves over two hundred customers offering high performance solutions besides infrastructure, information technology and telecommunications. Brazil Telecom has more than 10.7 million of lines in operation, 296,000 public telephones and 99% of the network in digital mode. It operates the second-largest wide-band base in Latin America. In 2003, Brazil Telecom's total sales was 11 billion reales. For additional information, visit http://www.brasiltelecom.com.br/ . About Claxson's Broadband and Internet Division The Broadband and Internet Division groups all of Claxson's broadband and Internet properties. ESDC is the leader in the broadband sector, and it is the first intelligent multimedia platform, developed by Claxson, to serve the Iberoamerican Internet market in the region. This unit also includes all of Claxson's online contents and interactive marketing tools, all grouped under the brand El Sitio.com, as well as its pay television sites, Space, Retro, I.Sat, Infinito, FTV, MuchMusic, HTV, Venus and Playboy TV and its interactive formats and on-line versions of the radio stations of the Broadcasting division. We also operate in conjunction with AOL, the paid version of Cupido.Net, one of the most popular dating services on the Internet. DATASOURCE: Claxson CONTACT: Alfredo Richard, +1-305-894-3588, or , or Veronica Barbera in Argentina, +011-54-11-4546-8805, or , or Juan M. Puppo in Argentina, +011-54-11-4546-8082, or , all of Claxson Communications Department Web site: http://www.claxson.com/

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