Hellenic Telecommunications Organization SA (ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, today announced recent developments regarding the appeal it filed with the Council of State (the Supreme Administrative Court in Greece) against the Greek telecommunications regulator, NTPC. In December 2003, NTPC ruled that OTE must implement price cuts in wholesale interconnection and leased-lines rates. Relevant regulations provide that these price cuts must be implemented immediately.

Believing that it has serious grounds to successfully contest the decisions of NTPC, OTE filed an appeal with the Council of State and the hearing was scheduled for April 27. In view of the postponement of the hearing of the case for October 19, 2004, OTE is complying with NTPC decisions. The new prices are expected to significantly reduce OTE's revenues and profitability in the short term and in the longer term, if the NTPC decision is upheld. If OTE is successful in its appeal, it will be able to bill for the price differential until revised prices are approved by NTPC.

OTE also intends to file a complaint against NTPC with the European Commission for failure to comply with Community Law.