COLLECTIVE LABOUR AGREEMENT

OTE REACHES AGREEMENT

FOR A TOTAL OF €160 MILLION IN SALARY CUTS

Athens, Greece - September 23, 2011 - Hellenic Telecommunications Organization SA (ASE:HTO, OTC MARKET:HLTOY) announces that yesterday, following lengthy negotiations of several months, it reached an agreement with the Unions on the framework of a three-year Collective Labour Agreement to be signed after approval by the competent bodies of the parties involved.

The basic terms include the following:

·; Ensuring employment for OTE's personnel. The company will not introduce work rotation or proceed with dismissals on financial or operational grounds, for the duration of the Collective Labour Agreement to be signed.

·; Reduction of personnel costs. Salary grades will be reduced by approximately 11% for a period of three years and then will revert to current levels in 1.1.2015.

·; Reduction of weekly working hours. Full working time will be adjusted to 35 hours per week and will increase to the current 40 hours per week from 1.1.2015.

The Chairman and CEO of OTE, Mr Michael Tsamaz commented:

"In this turbulent period, we succeeded in reaching an agreement on measures that can improve the company's competitiveness, whilst ensuring its uninterrupted operation. We have reached common ground with the Union representatives to reduce payroll costs without resorting to dismissals. This agreement is part of our effort to transform OTE into a highly competitive and efficient company and ensure future investments in telecommunications infrastructure in order to offer state of the art telecommunications services, to contribute to the technological advancement of the country and to increase shareholder value."

OTE Group is Greece's leading telecommunications organization and one of the pre-eminent players in Southeastern Europe, providing top-quality products and services to its customers.

Apart from serving as a full service telecommunications group in the Greek telecoms market, OTE Group has also expanded during the last decade its geographical footprint throughout South East Europe, acquiring stakes in the incumbent telecommunications companies of Romania and Serbia, and establishing mobile operations in Albania, Bulgaria, and Romania. At present, companies in which OTE Group has an equity interest employ about 29,000 people in four countries, and our portfolio of solutions ranges from fixed and mobile telephony to Internet applications, satellite, maritime communications and consultancy services.

OTE shares are listed on the Athens Stock Exchange, and the London Stock Exchange (in the form of GDRs). Following their delisting from the NYSE in September 2010, the company's ADRs trade in the US OTC market. OTE's American Depositary Receipts (ADR's) represent ½ ordinary share.

Additional Information is also available on http://www.ote.gr.

Contacts:

OTE: Dimitris Tzelepis - Head of Investor Relations

Tel: +30 210 611 1574, Email: [email protected] 

Maria Kountouri - Assistant to the Head of Investor Relations

Tel: +30 210 611 5381, Email: [email protected] 

Kostas Maselis - Senior Financial Analyst, Investor Relations

Tel: +30 210 611 7593, Email: [email protected]

Sofia Ziavra - Financial Analyst, Investor Relations

Tel: +30 210 611 8190, Email: [email protected]

Daria Kozanoglou - Senior Communications & Regulatory Affairs Officer,

Investor Relations

Tel: +30 210 611 1121, Email: [email protected]

Eftychia Tourna - Communications & Regulatory Affairs Officer, Investor Relations

Tel: +30 210 611 7236, Email: [email protected]

Eleni Agoglossaki - Communications & Regulatory Affairs Officer, Investor Relations Tel: +30 210 611 7880, Email: [email protected]

Forward-looking statement