OTE announces the sale of OTE Leasing, its leasing subsidiary, to a leading Greek banking Group, Piraeus Group.

The sale of OTE Leasing is a further significant step in OTE's corporate restructuring program. This transaction will further strengthen the financial position of OTE as its consolidated debt will be reduced by approximately ?147 million and therefore net leverage will decrease by approximately 2 percentage points to less than 30%. The consideration comprises ?5.9 million in cash and 1.5 million Bank of Pireaus (BOPr.AT - TPEIR GA) shares. Completion of the sale is conditional on final Regulatory approvals.

The sale of OTE Leasing is in line with our strategy, as disclosed in the past, of focusing in telecommunication activities, which are our core competency. This transaction follows the liquidation of OTE Exchanges (?OTE Antalaktiria?), our foreign currency exchange services subsidiary.

OTE Leasing for year ended December 31, 2000 had sales of ?54.8 million and profit before taxes of ?1.8 million. As at that date, assets were ?187.2 million.

OTE was advised on the sale by UBS Warburg.