OTE announces today that the 2001 Voluntary Redundancy Scheme has been completed successfully. The number of employees leaving under this year's scheme amounts to 1,050.

The cost associated with the 2001 Voluntary Redundancy Scheme is approximately Drs. 18 billion (?52.8 million), with a corresponding economic benefit to OTE, over the next four years, of approximately Drs. 30 billion (?88.0 million).

Under US Generally Accepted Accounting Principles (US G.A.A.P.), the present value of the social security contribution until the retirement date must be booked upon completion of the plan (i.e. for this year's scheme in Q1 2001).

With respect to the voluntary retirement bonus paid to the 1,050 employees leaving, this is accounted for in the financial quarter they actually depart from the company.

The cost in OTE's first quarter financial statements of Drs. 14.7 billion (?43.1 million) represents 100% of the present value of the social security contribution, as well as bonuses paid to approximately 25% of this year's departing staff. The saving for year 2001 is expected to be approximately Drs. 5 billion (?14.7 million) as the employees are leaving throughout this year.