OTE (Hellenic Telecommunications Organization), the Greek full service telecommunications provider, today announced consolidated Operating Revenues (prepared under US GAAP) of ?937.7 million for the three months ended March 31, 2001, a rise of 14.2% over last year. At the same time EBITDA grew by 10.7% to ?392.1 million and Earnings per Share increased by 6.1% to ?0.31. The financial results of the first quarter of 2001 confirm the positive effect of the latest rebalancing rounds, the continuing strong performance of COSMOTE our mobile telephony subsidiary and the growth of New Business products and services.

All figures have been translated into Euro using Drs. 340.75 per Euro (irrevocably fixed exchange rate as of January 1, 2001).FINANCIAL OVERVIEW

OTE's Operating Revenues increased by 14.2% in the three months ended March 31, 2001, continuing the shift away from traditional revenue sources to higher growth areas.

In line with pan-European trends, Revenues from Domestic Telephony contributed 56.5% of Total Revenues, as compared to 59.3% last year. In contrast, Revenues from Mobile Telephony and New Business Areas contributed 24.1% of Total Revenues, up from 16.6% in the same period in 2000.

Furthermore, the onset of competition, combined with OTE's aggressive tariff rebalancing, led to a 12.6% decrease in International Telephony Revenues.

For the first quarter 2001, our EBITDA margin was at 41.8% as compared to 43.2% for the same period last year. However, excluding the effect of our voluntary retirement scheme, our EBITDA margin has remained stable at 46.4% for both periods.

In an effort to protect OTE's bottom-line profitability by reducing its fixed cost base, OTE incurred a cost of ?43.1 million related to charges for its 2001 Voluntary Retirement Scheme, totaling 1,050 employees or 5.4% of our employee base. During the remainder of the year the company will incur additional charge of approximately ?10 million related to the voluntary retirement bonuses accounted for at the time of employee departure. This year's Voluntary Retirement Scheme has a positive effect over the next four years of ?88 million.

In the first quarter of 2001 a positive adjustment in the income tax provision was made of approximately ?11.7 million as a result of last year's income tax provision final calculations, upon submitting the annual income tax return in mid May 2001. As a result, Income before Minority Interests grew by 11.2% from last year to ?166.3 million.

Primarily due to the reduction in our participation in COSMOTE together with its increased profitability, Minority Interests increased significantly leading Net Income for the three months ended March 31, 2001 to increase by 3.4% compared to the same period last year, to ?150.1 million.

As a result of OTE's latest share buyback program, EPS grew by 6.9% compared to Net Income growth of 3.4%.