Athens ? 8 July 2005 ? The Settlement Agreement between INTRACOM S.A., acting on its behalf as well as on behalf of its Romanian subsidiary Intrarom S.A. and Ericsson AB, on the one part, and Cosmorom S.A., Romtelecom S.A., OTE SA and OTE International Investments Ltd. (OTEI), on the other part, entered into force yesterday, 7 July 2005.

Pursuant to the terms of the Settlement Agreement, INTRACOM and Intrarom will receive euros 78.2 million (seventy eight million two hundred thousand Euro) in three instalments (27.6 million, 27.6 million and 23 million Euro respectively). The first instalment was paid today, 8 July 2005, while the second and third are to be paid on 7 July 2006 and 7 July 2007 respectively. The payment of the second and third instalments is secured by two unconditional and irrevocable first demand bank guarantees.