Our operating and financial review and prospects include a financial statement format that differs slightly from the format included in the financial statements. We manage our business based on four distinct categories of costs: line costs, other costs of services, SG&A, and depreciation and amortization. Brazilian Corporate Law financial statements treats depreciation and amortization expense as an integral component of other costs of services and SG&A. However, we believe that it is appropriate for you to consider depreciation and amortization expense separately when analyzing our business due to the non-cash nature of this expense.
The following table sets forth, for each of the periods indicated, a reconciliation of the amounts referenced below to our consolidated Brazilian Corporate Law financial statements:

	Year Ended December 31,
	1998	1999	2000
	(in thousands of reais)
Costs of services:
Lines costs	(1,786,588)	(2,563,959)	(3,210,104)
Other cost of services	(341,322)	(349,558)	(391,653)
Depreciation and amortization	(657,831)	(706,397)	(797,510)
Total	(2,785,741)	(3,619,914)	(4,399,267)
Sales, general & administrative expenses:
Sales	(180,176)	(425,895)	(795,470)
General and administrative	(374,194)	(383,453)	(660,712)
Total	(554,370)	(809,348)	(1,456,182)
Less: SG&A depreciation	(21,066)	(26,944)	(59,292)
Net SG&A	(533,304)	(782,404)	(1,396,890)
Depreciation and amortization:
Depreciation included in SG&A	(21,066)	(26,944)	(59,292)
Depreciation included in Cost of services	(657,831)	(706,397)	(797,510)
Total	(678,897)	(733,341)	(856,802)

The following table sets forth, for each of the periods indicated, selected components of our results of operations and as a percentage of net operating revenues, as well as the percentage change from the prior year. As discussed above, the format of this table also differs from our Brazilian Corporate Law financial statements.

	Year Ended December 31,						Percentage Change
	1998	%	1999	%	2000	%	1998 vs. 1999	1999 vs. 2000
	(in thousands of reais, except percentages)
Gross revenues:	5,123,234	128.1%	6,680,342	128.9%	8,954,688	133.4%	30.4%	34.0%
Taxes and other deductions	(1,123,128)	(28.1)%	(1,496,415)	(28.9)%	(2,240,180)	(33.4)%	33.2%	49.7%
Net revenues:	4,000,106	100.0%	5,183,927	100.0%	6,714,508	100.0%	29.6%	29.5%
Lines costs (1)	(1,786,588)	(44.7)%	(2,563,959)	(49.5)%	(3,210,104)	(47.8)%	43.5%	25.2%
Other cost of services (2)	(341,322)	(8.5)%	(349,558)	(6.7)%	(391,653)	(5.8)%	2.4%	12.0%
Selling, general and administrative expenses (3)	(533,304)	(13.3)%	(782,404)	(15.1)%	(1,396,890)	(20.8)%	46.7%	78.5%
Other operating income (expense)	(577,244)	(14.4)%	40,566	0.8%	(12,250)	(0.2)%	107.0%	(130.2)%
EBITDA	761,648	19.0%	1,528,572	29.5%	1,703,611	25.4%	100.7%	11.5%
Depreciation and amortization	(678,897)	(17.0)%	(733,341)	(14.1)%	(856,802)	(12.8)%	8.0%	16.8%
Operating income (EBIT)	82,751	2.1%	795,231	15.3%	846,809	12.6%	861.0%	6.5%
Financial income (expense)	68,730	1.7%	(303,460)	(5.9)%	(188,316)	(2.8)%	(541.5)%	(37.9)%
Other non-operating income (expense)	(65,975)	(1.6)%	(37,650)	(0.7)%	111,224	1.7%	42.9%	(395.4)%
Net income before tax, employee profit sharing and minority interest	85,506	2.1%	454,121	8.8%	769,717	11.5%	431.1%	69.5%
Income tax and social contribution	63,585	1.6%	(1,241)	0.0%	(145,312)	(2.2)%	(102.0)%	11,609%
Employee profit sharing	(24,000)	(0.6)%	(36,000)	(0.7)%	(36,775)	(0.5)%	50.0%	2.2%
Minority interest	(1,513)	0.0%	(5,249)	(0.1)%	(10,540	(0.2)%	246.9%	100.8%
Net income	123,578	3.1%	411,631	7.9%	577,090	8.6%	233.1%	40.2%