Vivo Participacoes S.A.: Notice to the Market

SAO PAULO, July 6, 2011 /PRNewswire/ --

1. As previously announced by the management of Telecomunicacoes de Sao Paulo S.A. – Telesp ("Telesp") and of Vivo Participacoes S.A. ("Vivo Part." and, jointly with Telesp, the "Companies"), a merger of shares between Vivo and Telesp was completed and as a result Telesp became the sole owner of all of the common shares and preferred shares of Vivo and all of the American Depositary Shares ("ADSs) of Vivo were converted into ADSs of Telesp plus cash instead of any fractional Telesp ADSs.

2. Since June 8, 2011, Vivo's preferred shares have not been traded on the BM&FBovespa S.A. – Bolsa de Valores, Mercadorias e Futuros, the Brazilian stock exchange and the Vivo ADSs have not been traded on the New York Stock Exchange. Since that date, the Telesp shares have only been negotiated under Telesp's trading code: TLPP3 for common shares and TLPP4 for preferred shares.  The Telesp ADSs are now trading under the symbol VIV as the result of an agreement among the New York Stock Exchange, Vivo and Telesp.

3. On June 20, 2011, Form 25 was filed with the Securities and Exchange Commission (the "SEC") (Commission File Number 333-09470) announcing the removal of the Vivo ADSs from listing on the New York Stock Exchange in accordance with Rule 12d2-2(a)(3) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act").

4. In light of Telesp's current ownership of 100% of the equity securities of Vivo, Vivo has determined to terminate the registration of the Vivo ADSs under the Exchange Act and intends to file promptly with the SEC the necessary Form 15F. Vivo estimates that this filing will be made on or before July 8, 2011, thereby terminating its duty to report under section 15(d) of the Exchange Act.

VIVO PARTICIPACOES S.A.
Public Held Company with Authorized Capital
CNPJ MF 02.558.074/0001-73 - NIRE 35.3.001.587-92

July 6, 2011

Gilmar Roberto Pereira Camurra
Investors Relations' Officer
Vivo Participacoes S.A.

VIVO – Investors Relations Office
Tel: +55 11 7420-1172
Email: [email protected]
Information: www.vivo.com.br/ri

SOURCE Vivo Participacoes S.A.