FINANCIAL BURDEN TO THE PENSION FUNDS

ATHENS, Greece - January 31, 2011 - Regarding the potential additional financial burden of the Pension Funds, incurred as a result of OTE's 2005-2006 voluntary retirement programs, an issue of which had been raised in the past by the Ministry of Labor and Social Insurance, the Hellenic Telecommunications Organization SA (OTE SA)announces that:

On 28-1-2011, the Ministry of Labor and Social Insurance notified OTE of the results of actuarial studies, which had taken place pursuant to article 3 of the Ministerial Decision 10051/27177/2174/24-03-2010, with the purpose of estimating the additional financial burden of the Pension Funds, incurred as a result of OTE's voluntary retirement programs implemented under the terms of Law 3371/2005.

The additional financial burden to the pension funds, which has to be covered by OTE was set, according to these actuarial studies, at Euro 129.8 million. Following the requirements of the International Financial Reporting Standards, this amount will be charged in the OTE income statements of the year 2010.

OTE was also informed that further studies will be conducted for the estimation of any additional financial burden to the Pension Funds, incurred as a result of OTE's voluntary retirement programs implemented under the terms of Law 3762/2009.

It should be noted that OTE has already filed since May 2010 an appeal for the annulment of the abovementioned article of the Ministerial Decision and the procedure is pending before the competent administrative courts.

At this point, the company evaluates the new data, without prejudice to exercising any legal right in order to defend its interests.

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 32,000 people in four countries, and our portfolio of solutions ranges from fixed and mobile telephony to Internet applications, satellite, maritime communications and consultancy services.

Listed on the Athens Stock Exchange, the company trades under the ticker HTO. Following OTE's delisting from NYSE, OTE ADSs (American Depositary Shares) trade in the OTC (Over The Counter) market under the ticker HLTOY. OTE continues to report to SEC.

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] 

Christina Hadjigeorgiou - Financial Analyst, Investor Relations

Tel: +30 210 611 1428, Email: [email protected]

Dimitris Tsatsanis - Financial Analyst, Investor Relations

Tel: +30 210 611 6071, 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