Hellenic Telecommunications Organization SA (ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, today issued the following statement in response to press articles relating to OTE's Voluntary Retirement Scheme (VRS):

- OTE is proceeding with the implementation of the VRS regardless of the outcome of the European Commission?s pending decision regarding the conformity with European competition rules of the Greek government?s contribution to the OTE pension fund (TAP-OTE).

- This review by the European Commission had been anticipated and timely disclosed to the public and to all OTE stakeholders, including investors and union representatives.

- Until the European Commission?s final decision on this matter is released, the full cost of the VRS will be financed by OTE. The full cost of the VRS without including any state assistance to TAP-OTE has been charged to OTE?s nine months 2005 financial results.

- OTE has received official confirmation that the pending inter-ministerial decision, for the disbursement of pensions related to the VRS will be signed soon, so that TAP-OTE may begin to distribute pensions to employees who have signed up for the VRS.