Announcement by the Government of Armenia, OTE and Armentel

Business wire (press release)
Nov 25 2004

Announcement by the Government of Armenia, OTE and Armentel

ATHENS, Greece–(BUSINESS WIRE)–Nov. 25, 2004–The Board of
Directors of Hellenic Telecommunications Organization SA (ASE: HTO,
NYSE: OTE), the Greek full-service telecommunications provider,
issued the following announcement:

On November 25 2004, after a period of intensive negotiations, the
Government of Armenia, OTE and Armentel settled all outstanding
disputes between them.

The settlement package includes the mutual dismissal of an
arbitration proceeding between the Government and OTE in London, the
issuance of a second GSM license as well as an amended license to
Armentel with rationalized build-out obligations.

The Government, OTE and Armentel agreed to a compromise from their
respective positions, in order to replace a costly and
confrontational relationship, with one which is founded on
cooperation and the efficiency of the regulatory and business
environment, which will lead to the offering of consumer-oriented

As a result, the Armenian consumer will benefit from an enhanced
competitive offering of telecommunication services rendered.

On the other hand, Armentel will function under an equitable
regulatory framework, which will enable the implementation of
high-quality services based on rapidly evolving technologies.

With the support of the Armentel customers and the stabilization of
the regulatory and business environment for the investor, this new
chapter in the field of telecommunications will significantly
contribute to the growth of the economy of the Republic of Armenia,
and the prosperity of the population.

The Government of Armenia OTE Armentel JV,

About OTE

OTE is a provider of public, fixed switch domestic and international
telephony services in Greece. With local, long distance and
international communications services in addition to mobile
telephony, internet services, and high-speed data communications, OTE
provides consumers and businesses the ability to communicate globally
through its extensive network infrastructure. In addition, OTE has a
number of International investments in the South East European region
and addresses a potential customer base of 60 million people.

Listed on the Athens Stock Exchange, the company trades under the
ticker HTO as well as on the New York Stock Exchange under the ticker
OTE. In the U.S., OTE’s American Depository Receipts (ADR’s)
represents 1/2 ordinary share.

Additional Information is also available on

OTE: Dimitris Tzelepis- Head of Investor Relations,
Tel: +30 210 611 1574 / 1429
email: [email protected]

Nikos Kallianis – Senior Financial Analyst,
Investor Relations Tel: +30 210 611 5070;
email: [email protected]

Daria Kozanoglou – Communications Officer,
Investor Relations Tel: +30 210 611 1121;
email: [email protected]

Taylor Rafferty: London: +44 20 7936 0400, New York: +1
email: [email protected]

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