(ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, today issued the following statement:

"On November1, 2002, OTE and the Romanian Ministry of Telecommunications and Information Technology signed a Memorandum of Understanding regarding the increase in OTE's interest in the capital of RomTelecom.
"On November 21, 2002, OTE announced that it would provide the international financial community and media with details regarding these transactions and OTE's plans to turn around RomTelecom's performance at the time of its third quarter 2002 results announcement.

?However, in view of recent regulatory developments, OTE has informed the Romanian authorities that certain issues need to be resolved before OTE proceeds further with the finalization and implementation of the transactions, as well as with any transfer of funds. Under these conditions, OTE will not be in a position to announce the specifics of the transactions and business plan until a satisfactory solution has been agreed."