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22 OCTOBER 2010

3Q10 RESULTS PRESENTATION

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DISCLAIMER

This presentation contains forward looking information, including statements which constitute forward looking statements within the

meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and assumptions

of our management and on information available to management only as of the date such statements were made.

Forward-looking statements include

(a) information concerning strategy, possible or assumed future results of our operations, earnings, industry conditions, demand and

pricing for our products and other aspects of our business, possible or future payment of dividends and share buy back program; and

(b) statements that are preceded by, followed by or include the words “believes”, “expects”, “anticipates”, “intends”, “is confident”, “plans”,

“estimates”, “may”, “might”, “could”, “would”, and the negatives of such terms or similar expressions.

These statements are not guarantees of future performance and are subject to factors, risks and uncertainties that could cause the

assumptions and beliefs upon which the forwarding looking statements were based to substantially differ from the expectation predicted

herein. These factors, risks and uncertainties include, but are not limited to, changes in demand for the company’s services, technological

changes, the effects of competition, telecommunications sector conditions, changes in regulation and economic conditions. Further,

certain forward looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual

outcomes and results may differ materially from the plans, strategy, objectives, expectations, estimates and intentions expressed or

implied in such forward-looking statements. Additionally, some of these statements refer to board proposals to be submitted to ZON -

Multimédia – Serviços de Telecomunicações e Multimédia, SGPS, S.A. (“Multimedia” or “ZON”) AGM and subject to (i) its approval by

Multimedia’s shareholders, (ii) the market conditions and (iii) the ZON’s financial and accounting position as revealed in the financial

statements approved by Multimedia’s AGM.

Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of

new information or future developments or to provide reasons why actual results may differ. You are cautioned not to place undue reliance

on any forward-looking statements.

ZON Multimedia is exempt from filing periodic reports with the United States Securities and Exchange Commission (“SEC”) pursuant to

Rule 12g3-2(b) under the Securities Exchange Act of 1934, as amended. The SEC file number for PT Multimedia’s exemption is No. 82-

5059. Under this exemption, ZON Multimedia is required to post on its website English language translations, versions or summaries of

certain information that it has made or is required to make public in Portugal, has filed or is required to file with the regulated market

Eurolist by Euronext Lisbon or has distributed or is required to distribute to its security holders.

This presentation is not an offer to sell or a solicitation of an offer to buy any securities.

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Leading Triple Play with almost 52% penetration,

Continued growth in BB and Voice

Very strong Revenue and EBITDA growth, one of

the highest in sector

Recurrent Operating Cash Flow showing very

strong recovery

Total CAPEX set to peak in 2010, strong Cash Flow

momentum in 2011

Key Messages

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Leading in Triple play with 52% penetration

ZON cable customer profile 3Q10 [%]

Growth in 3P customers / Penetration [Thousands, %]

Triple Play51,9%

Double Play

15,2%

Single Play32,9%

193,4

435,9

603,5

17,6%

36,9%

51,9%

10%

30%

50%

70%

90%

110%

130%

150%

170%

0, 0

100, 0

200, 0

300, 0

400, 0

500, 0

600, 0

700, 0

3Q08 3Q09 3Q10

5 5

Triple Play driving ARPU growth

Blended ARPU [Euros]

Multiple service ARPU premium [ARPU Single Play = 1]

1,0

2,1

1P 3P

34,0

35,0 35,235,6 35,8

3Q09 4Q09 1Q10 2Q10 3Q10

+2x

+5.4%

6 6

Protection of Pay TV leadership

Relative size of Pay TV customer base

[Thousands]

1.573

703

26175

ZO N meo Cabovi são O t hers

Others

(3Q10) (2Q10) (2Q10) (2Q10)

Source: ZON, ANACOM

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Strong uptake in digital services

ZON HD Boxes installed [Thousands]

417,4

545,5

662,9742,7

815,6

10%

20%

30%

40%

50%

60%

70%

0

100

200

300

400

500

600

700

800

900

3Q09 4Q09 1Q10 2Q10 3Q10

2.0x

80.9% of ZON customers receive

digital services

HD set top boxes installed

represent 70% of the digital

subscriber base

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Robust growth in Broadband, leading NGN

services

Broadband customer mix [Thousands, %]

Broadband Subs and Penetration of

cable base [Thousands, %]

10% 7%

50%46%

31%31%

9,1% 17%594,4 666,4

540, 0

560, 0

580, 0

600, 0

620, 0

640, 0

660, 0

680, 0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3Q09 3Q10

2 Mbps 5 - 10 Mbps 20 -30 Mbps ZON Fibra

594,4

666,4

50%

57%

30%

35%

40%

45%

50%

55%

60%

65%

70%

200

250

300

350

400

450

500

550

600

650

700

3Q09 3Q10

+12.1% 113k

“ZON Fibra”

Subs

60%

Market

Share

in 2Q10

9 9

The best broadband speeds of the market

Average maximum rated download speeds ANACOM

study October 2010

80,6% 77,2%70,2% 66,6%

26,2%

ZON Vodafone Cabovisão PT Optimus

Source: ANACOM

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The only operator growing in Fixed Voice

Fixed Voice Subs and

Penetration [Thousands, %]

Fixed Voice net adds 2Q09-

2Q10 [Thousands]

Mobile Subscribers [Thousands]

529,2

732,3

45%

63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0, 0

100, 0

200, 0

300, 0

400, 0

500, 0

600, 0

700, 0

800, 0

3Q09 3Q10

+38.4%

213,5196,7

ZON Market

53,9

104,7

3Q09 3Q10

1.9x

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The best results ever in customer service

Pay TV

Source: ANACOM

PTC

< 1,0 > 1,0 ; < 2,2 > 2,2

Complaints per thousand customers (Anacom Data 1H10)

Broadband

Fixed Voice

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The greatest coverage with the

highest bandwidth and prepared for

the future

Network independence

Greater operational flexibility and

cost efficiency

Potential for Revenue upside with

Wholesale of connectivity

Eurodocsis 3.0 upgrade complete; 2,8 million

homes with up to 200 Mbps; 400 Mbps

technical pilots underway

Selective and success driven cell-splitting

going forward

Network GPON ready

Systems migrated to a new ZON data centre

Migration of ZON primary network out of

incumbent infrastructure, almost complete.

Over 1.8 thousand kms of fibre cable rolled out

with an average of 96 fibres per cable 175

thousand kms of optic fibre

Focus on leading NGN momentum

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2.7 million tickets sold in 3Q10, increase in average

revenue per ticket of 5.2% to 4.8 euros

Digitalization project nearly complete thus enabling

higher operational and cost efficiency at 213 screens

o.w. 66 3D (2 per multiplexer).

Around 31% tickets sold is for a 3D movie

ZON Lusomundo distributed 9 of the top 10 films in

9M10 increasing its share in 3Q10 to 63% from 46% in

3Q09.

Another record quarter in Cinemas and

Audiovisuals

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2.229 2.3002.472

1.717

2.670

3Q09 4Q09 1Q10 2Q10 3Q10

Share of cinema distribution

revenues 3Q10 [%]

Cinema Tickets Sold [Thousands]

ZON63%

Columbia23%

Castello Lopes

7%

Others7%

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ZAP picking up speed in Angola

Increased commercial activity with launch in mid-

August of Sport TV Africa, exclusive to ZAP’s network.

Other key content secured, with close to 100 channels

already available.

Focus remains on increasing distribution and retail

network and deployment of own stores – 150 points of

sale already deployed with encouraging customer

take-up.

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Financial Review

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Another quarter of strong growth in Revenues

Operating Revenues [Millions of Euros]

Pay TV, BB and Voice Revenues [Millions of Euros]

597,9651,3

9M09 9M10

181,6196,3

3Q09 3Q10

+8.1%

538,6586,6

9M09 9M10

+8.9%

203,1

221,6

3Q09 3Q10

+9.1%

+8.9%

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Record performance in Cinemas and Audiovisuals

Audiovisuals Revenues [Millions of Euros]

Cinema Revenues [Millions of Euros]

16,1

20,1

3Q09 3Q10

+24.6%

43,5

54,6

9M09 9M10

+25.4%

14,9

18,5

3Q09 3Q10

+24.5%

39,3

46,2

9M09 9M10

+17.7%

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Continued focus on efficiency Operating Costs 3Q10 / 3Q09 [Millions of Euros]

Operating Costs 9M10 / 9M09 [Millions of Euros]

133,8142,1

3Q09 3Q10

+6.2%

400,2422,2

9M09 9M10

+5.5%

Operating Costs

(millions of euros) 3Q10 Δ % Drivers

Higher fixed and particularly mobile traffic driving increased interconnection charges

Increase in Programming Costs due to the introduction of new channels

Increased operating activity in Cinema and Audiovisuals, dictating a higher level of royalty charges payable to producers

Other Operating Costs 46.3 8.5%Higher level of support costs y.o.y. related with success of reverse logistics programme although sequential quarterly

analysis shows stabilization

Focus on rationalizing sales channels, namely by increasing the importance of own stores and service to sales

channels and reducing the weight of more expensive door-to-door sales channel Commercial Costs 17.8 (7.4%)

W&S 13.9 (5.9%)

Direct Costs 64.0 12.2%

Non-recurrent decline due to accounting of employee plans in 2Q10, Structural decline in cinema headcount due to

digitalization

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Operational Profitability, Solid EBITDA growth

EBITDA and EBITDA Margin 3Q10 / 3Q09 [Millions of Euros, %]

EBITDA Margin y.o.y [%]

69,3

79,5

34,1%

35,9%

30, 0%

31, 0%

32, 0%

33, 0%

34, 0%

35, 0%

36, 0%

37, 0%

38, 0%

30, 0

40, 0

50, 0

60, 0

70, 0

80, 0

90, 0

3Q09 3Q10

+14.7%

31,7%

33,3%34,1%

30,1%

34,3%35,3%

35,9%

25%

28%

30%

33%

35%

38%

1Q 2Q 3Q 4Q

EBITDA Margin 2009 EBITDA Margin 2010

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Net Income Net Income 3Q10 / 3Q09 [Millions of Euros]

Net Income 9M10 / 9M09 [Millions of Euros]

* Net Income adjusted for the capital gain resulting from the sale of the 40% in Lisboa TV in 1Q09.

11,9

8,6

3Q09 3Q10

(27.3)%

28,7*31,6

9M09 9M10

+10.0%

(millions of euros) 3Q10 Δ % Drivers

Accelerated roll-out of customer terminal equipment over the past 2 years

Investment in set-top-boxes is already posting a quarterly downward trend

Negative contribution of 3.1 million euros in 3Q10 of Equity Consolidation of Angolan operation, and cumulative of 5.4 milllion euros in

9M10

Significant sequential quarterly increase due to positive impact in 2Q10 of increase in corporate tax rate on deferred tax assets

Positive impact of tax benefits for investments in research and development and NGN

Net Interest charges of 6.9 million euros

Income Taxes n.a.

D&A 55.4 11.8%

Net Financial Expenses 10.4 45.6%

(4.1)

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Sequential decline in Recurrent CAPEX

Baseline CAPEX, % of Operating

Revenues [Millions of Euros, %]

Baseline CAPEX [Millions of Euros]

52,7

63,4

50,1

41,5 41,6

25,9%

29,4%

23,4%

19,2% 18,8%

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

0, 0

10, 0

20, 0

30, 0

40, 0

50, 0

60, 0

70, 0

3Q09 4Q09 1Q10 2Q10 3Q10

24,514,9

2,4

3,5

25,8

23,3

52,7

41,6

3Q09 3Q10

Terminal Equipment Other Baseline CAPEX

Pay TV, BB and Voice Infrastructure

(21.0)%

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Non-Recurrent CAPEX peak in 2010

Total CAPEX 3Q09, 3Q10 [Millions of Euros]

Total CAPEX 9M09, 9M10 [Millions of Euros]

142,4 133,1

1,636,5

144,0

169,6

9M09 9M10

Baseline CAPEX Non-Recurrent CAPEX

52,7 41,6

0,7 17,8

53,4 59,4

3Q09 3Q10

Baseline CAPEX Non-Recurrent CAPEX

REFER and Data

Centre investments

complete

ZON-IN 50-60% done;

to be completed by

YE10

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Sound Capital Structure and Adequate Debt

Maturity

Net Financial Debt [Millions of Euros]

Net Financial Debt / EBITDA [X]

615,8

30,6

59,5

50,2

72,6

66,6

1,5

632,6

2009

Working Capital

EBITDA -CAPEX

Dividends Paid

Sale/ Acq of Own Shares

Long Term Contracts

Other Items

9M10

2,2x

2,3x

9M10

2009

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Wrap-up

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Continued strong operational momentum reinforcing

leadership in Triple Play.

Independent, fully Eurodocsis 3.0 upgraded, GPON-ready

network, enabling superior NGN capabilities with the best

geographical coverage in Portugal.

Strong Revenue and EBITDA growth together with

sequential decline in recurrent CAPEX already flowing

through to OFCF.

Non recurrent projects to peak in 2010. Significant FCF

momentum going forward.

Wrap-up

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Appendix

Financial Highlights

Operational Highlights

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Financial Highlights

(Millions of Euros) 3Q09 3Q10 ∆ y.o.y. 9M09 9M10 ∆ y.o.y.

Operating Revenues 203.1 221.6 9.1% 597.9 651.3 8.9%

Pay TV, Broadband and Voice 181.6 196.3 8.1% 538.6 586.6 8.9%

Audiovisuals 16.1 20.1 24.6% 43.5 54.6 25.4%

Cinema Exhibition 14.9 18.5 24.5% 39.3 46.2 17.7%

Other (9.5) (13.3) 40.1% (23.5) (36.1) 53.9%

EBITDA 69.3 79.5 14.7% 197.7 229.1 15.9%

Income from Operations 19.7 24.1 22.1% 62.3 68.4 9.8%

Net Income 11.9 8.6 (27.3%) 41.0 31.6 (22.9%)

CAPEX 53.4 59.4 11.2% 144.0 169.6 17.7%

EBITDA minus CAPEX 16.8 20.1 19.6% 57.0 59.5 4.4%

Net Financial Debt 621.8 632.6 1.7% 621.8 632.6 1.7%

EBITDA margin (%) 34.1% 35.9% 1.8pp 33.1% 35.2% 2.1pp

CAPEX as % of Revenues 26.3% 26.8% 0.5pp 24.1% 26.0% 1.9pp

Net Financial Debt / EBITDA [x] 2.4x 2.2x n.a. 2.4x 2.2x n.a.

28 28 28

Operational Highlights

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José Pedro Pereira da Costa

CFO

Maria João Carrapato

Head of Investor Relations

ir@zon.pt

ZON Multimedia

Avenida 5 de Outubro, 208

1069-203 Lisboa, Portugal

Tel.: +351 21 782 47 25

Fax: +351 21 782 47 35

Contacts