ATHENS, Greece - November 12, 2002 - Hellenic Telecommunications Organization SA (ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, today announced the terms of a transaction between OTE and the Romanian government regarding RomTelecom. The transaction includes a $243 million increase of RomTelecom's capital, to be fully subscribed by OTE. This amount comprises $98 million of conversion of debt into equity (?55 million representing a bridge loan from OTE to RomTelecom and $43 million representing trade debt payable by RomTelecom to OTE). Following this capital increase, OTE will own approximately 51% of RomTelecom's share capital. In addition, the transaction will involve the acquisition of a further 3% interest in RomTelecom's expanded share capital from the Romanian Ministry of Communications as representative of the Romanian State for approximately $31 million. The two transactions will see OTE assume 54% ownership of the share capital of RomTelecom.

Separately, the company's restructuring program, in addition to reducing capital expenditure and operating expenses, will entail restructuring of RomTelecom debt. It is currently estimated that debt of $250 million will be required, partly to restructure existing debt. Both shareholders will use their best efforts to support this process. Details of the restructuring plan together with the company's strategic and operational priorities will be announced following the completion of the transaction.

Lefteris Antonacopoulos, OTE's Chairman and CEO, noted ?we are pleased with the outcome of our negotiations with the Romanian government, as we believe that this transaction is a positive development for both sides and provides a strong base for the transformation of RomTelecom into a modern profitable organization offering high quality telecommunications services to individual and business customers in Romania.?