TELE CELULAR SUL PARTICIPAÇÕES S.A.
A Publicly-Owned Company
C.N.P.J. n°. 02.558.115/0001-21
NOTICE TO SHAREHOLDERS
CREDIT OF INTEREST ON CAPITAL

Shareholders are hereby informed that the Board of Directors of Tele Celular Sul Participações S.A. (“Company”) adopted and will submit to the appreciation of the Shareholders Meeting the credit of Interest on Capital (“Juros Sobre o Capital Próprio - JSCP”), pursuant to article 9 of Law n° 9.249/95 and Comissão de Valores Mobiliários – CVM Decision n° 207/96.

The corresponding credit will be posted to the accounts on Dec.31.2003, individually, on the basis of the respective shareholding on that date, in compliance with IN-SRF n° 41/98.

Gross interest of R$ 0.0336626219 will be credited per lot of one thousand shares, minus 15% withholding income tax, resulting in net interest of R$ 0.0286132286, excepting shareholders with proven exemption, will accrue on the dividends as provided in article 9°§ 7° of Law n°. 9.249/95.

Exempted legal entities shall provide evidence of such exemption no later than Jan.05.2004 to the shares management of Banco ABN AMRO Real S/A, depository of the book-entry shares, at Avenida Paulista, 1374 – 8° andar – Cerqueira César – São Paulo – SP, CEP: 01310-916, Telephone (0XX 11) 3174-9279, Fax: (0XX11) 3174-9176, E-mail: acionista@real.com.br .

Curitiba, December 17, 2003.

Paulo Roberto Cruz
Cozza Director of Investor Relations

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.