ATHENS, Greece - June 28, 2004- The Government of the Republic of Armenia, Hellenic Telecommunications Organization SA (ASE: HTO, NYSE: OTE) and Armenia Telephone Company (ARMENTEL), jointly announce the commencement of negotiations with a view to settling all outstanding disputes between the parties.

The Government of the Republic of Armenia has made a decision to suspend the amendment of License No. 60 issued to Armentel, until 28 September 2004 to facilitate the conduct of the negotiations. The amendment of License No. 60 relates to the granting of a second mobile telephony license in Armenia