· Further deterioration in Greek fixed-line revenues and profitability
· Healthy growth at Cosmote, RomTelecom and international mobile operations
· Agreement in principle with unions on headcount reduction paving way for radical fixed-line reorganization.

ATHENS, Greece - February 24, 2005 - Hellenic Telecommunications Organization SA (ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, today announced consolidated unaudited results (prepared under US GAAP) for the quarter and full year ended December 31, 2004.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS AND TWELVE MONTHS ENDED DECEMBER 31, 2004 AND 2003 IN ACCORDANCE WITH U.S. GAAP

Commenting on the quarter, Mr. Panagis Vourloumis, Chairman and CEO, noted:
"The results we are publishing today - characterized by a second consecutive quarterly operating loss in our Greek fixed-line operations, whose performance has now been on a steadily deteriorating trend for the past two years - clearly underscore that the status quo was not an option. The agreement reached with the unions yesterday, if rapidly turned into actions, should enable us to get our fixed-line payroll under control. Even more importantly, it should provide us with the means to restructure our organization from the ground up and to drastically reduce our overhead." Mr. Vourloumis added: "Apart from Greek fixed-line, whose natural revenue erosion has been exacerbated in 2004 by regrettable regulatory decisions, all other major OTE Group units have posted solid revenue growth and satisfactory profitability levels. This raises my confidence that, once we have been given full latitude to tackle our cost issues in fixed-line, we will be able to rebuild a healthy, profitable group."

FINANCIAL HIGHLIGHTS
Operating Revenues
OTE Group Operating Revenues decreased by 1.5% in the three months ended December 31, 2004. The decline in quarterly operating revenues reflects the 10% drop in Greek fixed-line revenues, due in part to the Regulator-imposed cuts in leased-line tariffs, as well as to lower traffic and pricing. Higher revenues in mobile telephony, both in Greece and abroad, and at RomTelecom largely offset the drop in fixed-line revenues in Greece during the quarter.

Operating Expenses
Payroll and Employee Benefits increased by 12.8% to euro 322.0 million in the fourth quarter of 2004, compared to the fourth quarter of 2003. Voluntary retirement costs totaled euro 28.9 million in full year 2004.
Payments to International Operators increased by 19.1% to euro 60.6 million. Payments to domestic telephony operators (Mobile and Fixed-line Operators) decreased by 2.7% to euro 151.6 million. These payments do not include payments to Cosmote, but include payments from Cosmote to other mobile operators.
Other Operating Expenses increased by 30.3% to euro 419.5 million, largely reflecting significant increases in Greek fixed-line operations.

Operating income before depreciation and amortization
For the fourth quarter of 2004, OTE Group Operating income before depreciation and amortization, amounted to euro 330.7 million, or 25.7% of revenues. The drop in margin, from 37.6% in the comparable quarter last year, primary reflects the deterioration of operating performance in Greek fixed-line operations.

Net Income
Net Income for the three months ended December 31, 2004 reached euro 20.2 million, down 74.2% from net income of euro 78.4 million in last year's fourth quarter.

Cash Flow
Cash provided by operating activities amounted to euro 445.0 million for the three months ended December 31, 2004.

Capital Expenditure
Capital expenditure in the fourth quarter of 2004 totaled euro 238.7 million, and euro 883.7 million for the twelve months of 2004.

BUSINESS OVERVIEW
OTE's segment reporting is based on its legal structure. A reconciliation of intersegment revenues to total revenues is provided, as below:

* Up to January 31, 2003, OTE was billed by the mobile operators for substantially all its revenue from calls placed from its network to customers of the mobile operators. These charges were included in "Payments to mobile telephony operators" in Operating Expenses. Simultaneously, OTE charged the mobile operators an interconnection fee relating to such calls, which was included in "Interconnection charges" in Other Operating Revenues. Effective February 1, 2003, OTE, based on new arrangements made with the mobile operators, no longer charges an interconnection fee for such calls but pays a charge per minute at rates determined in the new agreements. Adjusted Operating Revenues eliminate the effect of that change.

Fixed-line revenues declined by 10.1% in the fourth quarter of 2004 to euro 688.9 million. For the full year, revenues were down 8.5% to euro 2,826.7 million. The decline is to a large extent due to lower leased-line and interconnection tariffs imposed by the Greek telecommunications regulator, which reduced operating revenues by an estimated euro 110 million. The balance of the decline reflects lower traffic volume and the new tariff structure imposed by the regulator. These declines were partly offset by higher revenues from monthly rentals, ISDN and ADSL. In the fourth quarter, revenue declines in domestic fixed-to-fixed and fixed-to-mobile calls were in line with the trends recorded earlier in the year, while the drop in international telephony revenues widened in the fourth quarter.

Take up of OTE's pricing packages continued at a high level, as the 1.5 million subscriber mark was passed towards the end of 2004. OTE intends to pursue the active marketing of its pricing packages in 2005.

As of the end of the year, OTE had approximately 44,000 ADSL customers, reflecting considerable marketing efforts as well as successful reduction of the installation delays experienced earlier in the year. Another 13,000 ADSL customers were signed up in the first six weeks of 2005, and OTE expects to close the year with over 120,000 ADSL customers.

For 2005 as a whole, OTE expects a more limited drop in fixed-line operating revenues compared to the decline posted in 2004. While revenues from domestic and international calls should post decreases in line with the 2004 levels, OTE should benefit from higher monthly rentals following the 8.7% increase (PSTN lines) implemented on January 1st, higher ADSL revenues, as well as the decisions taken by the telecommunications regulator in late 2004 establishing fairer leased-line pricing going forward.
Total Operating Expenses increased by 8.1% compared to the fourth quarter of 2003 reaching euro 727.0 million, mainly influenced by the growth of Other Operating Expenses.

The sharp increase in repairs, maintenance and cost of telecom materials, both in the fourth quarter and full year, is largely due to the Olympic Games project. In particular, a provision for dismantling and reduction of value of equipment used in the Olympics added approximately euro 32 million to full-year expenses, while the increase in cost of telecom materials is also attributable in part to the Games. Provisions for doubtful accounts were impacted by the difficulties of alternative carriers.

In the 12 months ended December 31, 2004, Net Working Capital for the Domestic Fixed-line business (including bad debt, excluding intra-group transactions and cash) continued to decline as a percentage of revenue compared to the same period of 2003, standing at 20.3% versus 26.4% last year (Greek GAAP). This continuing decline has further reduced the already historically low Net Working Capital requirements of OTE, confirming that the efforts of the Domestic Fixed-line business for the past two years have had a lasting impact on all levers affecting Net Working Capital, including improving receivables and payables management, inventory utilization and billing efficiency. In particular, Days Sales Outstanding (including VAT) have for the first time decreased below 100 days, currently standing at 90 days. Also, Days Payables Outstanding have increased from 121 last year to 127, while inventories have decreased by 11.7% since the same period last year. Notwithstanding any potential seasonal effects, Net Working Capital is expected to remain at historically low levels through 2005 as the new credit and collections policies continue to be institutionalized.

Cosmote operates in four countries of Southeastern Europe: through direct ownership in Greece (Cosmote) and Albania (AMC) and since January 2003, through management of companies owned by OTE in Bulgaria (GLOBUL) and F.Y.R. of Macedonia (CosmoFon). Cosmote group consolidated results incorporate the Greek and Albanian companies.

Cosmote group Operating Revenues for the fourth quarter of 2004 increased by 7.1%, to reach euro 385.5 million. The overall revenue increase reflects a 6.7% increase in airtime revenues, a 36.8% increase in revenues from monthly service fees and a 0.8% increase in interconnection revenues. Revenues from sales of handsets & accessories, following the launch of i-mode service in early June and the introduction of new handsets, increased by 61.7%, while roaming revenues decreased by 5.0%. In total, revenues from telecommunications services increased by 8.0%, representing approximately 96% of total revenues.

The key driver behind the healthy revenue growth is the considerable increase in Cosmote's domestic operations traffic volumes that during the twelve months ended December 31, 2004 increased by approximately 28% y-o-y, due to strong positive elasticity that offset any impact from previous years tariff cuts and the introduction of the bundled packages.
Data revenues (which include SMS, MMS, and other "soft data" revenues from Value Added Services) represent approximately 11.3% of total telecommunication revenues and 11.5% of domestic operations during the twelve months ended December 31, 2004.

Roaming revenues during the twelve months ended December 31, 2004 reached euro 42.0 million, 2.0% lower compared to the respective period of 2003 due to the significant drop in tourist arrivals during the summer months.

During the fourth quarter of the year, Cosmote signed 32 additional roaming agreements bringing the total at December 2004 to 378, in 178 countries. In addition, since the launch of i-mode in June 2004, the Company has signed 40 GPRS roaming agreements in 25 countries.

Operating Income before depreciation and amortization for the quarter increased by 6.0%, reaching euro 159.8 million, representing a margin of 41.5%.

Fourth quarter 2004 Cosmote Group Net Income amounted to euro 68.9 million, up 4.2% compared to the fourth quarter of 2003. Consolidated Net Income margin reached 17.9%.

Contract customers at the end of the quarter reached 1,636,230 or 39.4% of total while prepaid customers reached 2,515,117 or 60.6% of total. At the same period, AMC's (Albania) customer base stood at 638,728 mostof it consisting of prepaid customers.

In June 2004, following the signing of a partnership agreement with NTT DoCoMo, Cosmote launched i-mode, the world's most popular mobile Internet service, in the Greek market. By the end of December 2004, and in just 7 months time, i-mode customer take up has been very encouraging, with i-mode service activations surpassing 114,000.

3. ROMTELECOM
OTE, through its wholly owned subsidiary OTE International Investments Ltd, holds a 54.01% interest in RomTelecom S.A., the incumbent telecommunications operator in Romania. RomTelecom's key financial figures are stated below:

Comparative figures include euro 60 million impairment charge taken by Romtelecom in 2003 results, relating to the carrying value of Cosmorom's fixed assets.
In the fourth quarter of 2004, RomTelecom posted revenues of euro 220.8 million, 6.9% up from revenues of euro 206.6 million in the same period last year. The revenue increase was mainly the result of a 61% rise in interconnection traffic in the fourth quarter, and of higher rental tariffs.

Interconnection revenues increased significantly in 2004 compared to 2003 (+44%). During 2004, RomTelecom regained a significant share of inbound and outbound international traffic of Mobile Operators, previously lost as a result of the January 1, 2003 market liberalization. Also, in the same period RomTelecom's inbound traffic to its own network increased significantly as a result of a sizable drop of the termination of VOIP international traffic.
Revenues from rental fees and new connections increased mainly as a result of the June 2004 tariff rebalancing. Also, there was a slight increase in the number of lines operated by RomTelecom in December 2004 compared to 2003.
Domestic traffic decreased in comparison to the fourth quarter of 2003 due to the substitution from mobile and increasing competition from alternative carriers. On the other hand, the tariff rebalancing induced the increase of international traffic for residential customers.
Operating Income before Depreciation & Amortization as a percentage of Operating Revenues rose to 33.7% in 2004, as compared to 20.2% in 2003, as a result of continuous efforts aimed at improving efficiency and cutting costs.
Most cost items recorded savings in 2004 compared to the previous year, leading to a 4.4% decrease in operating expense in 2004, despite the one-off redundancy payments of euro 57.1 million and the one-off additional provisions for inventories of euro 12.2 million. Payroll expenses (without redundancy payments) decreased by 18.5% as a direct result of headcount reductions. Ιn spite of increasing outgoing traffic, interconnection costs dropped due to tariff decreases.
During 2004, Romtelecom succeeded to improve significantly its profitability, posting a full-year net income of euro 107.1 million. The profit margin for the fourth quarter of 2004 reached 23.1%, from ?1.7% in the fourth quarter of 2003.
RomTelecom received the Regulator's approval for a new round of tariff rebalancing to become effective from February 1, 2005. ANRC approved an average increase in monthly rental of 34.1%, while the charges for International, Long Distance and Fixed to Mobile Calls are to be reduced by 9.1%, 10.0% and 3.4%, respectively.

RomTelecom's management is proceeding with its "Transformation Plan":
- Efficiency improved from 181 Lines per Employee at the end of 2003 to 240 Lines per Employee at the end of 2004, an increase of 32.6%.
- Headcount was reduced to 18,083 at the end of 2004 from 23,869 one year earlier.
- Implementation of several projects continues successfully, notably the development of a new central Billing System replacing the existing systems to be operational early in July 2005 and the deployment of the Oracle Financials e-Business System. In the area of operations, Service Assurance program completed successfully while Service Delivery project continues on track. COSMOROM
CosmoRom's operating revenues for the year ended December 31, 2004 amounted to euro 6.8 million, while net losses amounted to euro 15.7 million. A proposal to relaunch Romanian mobile operations under the management of Cosmote has been submitted to the Romanian Government in its capacity as joint-shareholder of RomTelecom.

OTEnet is the Internet and IP services subsidiary of OTE (90.2% owned by OTE). It offers Internet access, IP telecom solutions, IT application development and hosting services using Internet technologies. Revenues in the fourth quarter of 2004 decreased by 12.1% compared to the fourth quarter of 2003, and reached a level of euro 18.8 million. Revenues in the fourth quarter of 2003 included approximately euro 2.4 million related to the Olympic Games.

OTEnet's subsidiary Voicenet which provides IP based telephony solutions to business customers, achieved sales of euro 16.1 million in 2004, compared to euro 8.1 million in 2003, while OTEnet Cyprus, achieved sales of euro 3.3 million in 2004.

OTEnet boosted its customer base significantly. As of December 31, 2004, OTEnet had over 316,600 active residential customers and over 9,950 corporate customers.

5. OTHER INTERNATIONAL INVESTMENTS
ARMENTEL
ArmenTel's Operating Revenues for the fourth quarter of 2004 amounted to euro 23.5 million. Operating income before depreciation and amortization reached euro 14.1 million, or 60% of operating revenues while net income reached euro 7.0 million.
GLOBUL
Cosmo Bulgaria Mobile EAD (GloBul) is a 100% OTE-owned subsidiary. GloBul, which is managed by Cosmote, operates a GSM 900 / 1800 mobile telephony license in Bulgaria. GloBul's Operating revenues for the fourth quarter of 2004 amounted to euro 53.1 million versus euro 32.9 million during the same prior-year period, representing an increase of 61.4%. The overall increase reflects a 17% increase in monthly service fees (including airtime revenue incorporated in the bundle packages), a 72% increase in airtime reven ue, a 179% increase in SMS revenues and a 117% increase in roaming revenues. Fourth quarter operating income before depreciation and amortization reached euro 16.3 million, compared to euro 5.1 million during the same period last year. The company was net income positive for the quarter and thus reached an important milestone in its development. GloBul's impressive performance in the final quarter of 2004 rests on a number of factors:
· A customer base growth of 62% compared to the fourth quarter of 2003. GloBul now has a total of 1,624,569 customers and a market share of 38%. Prepaid customers of GloBul are now 1,077,916, while contract subscribers are 546,653, providing a prepaid / contract mix of 66% / 34%. The increase in the number of GloBul subscribers is a result of both the increase of market penetration and increased market share of the company;
· Stable usage of prepaid communication
· Increased number of contract subscribers / Continued growth in contract usage
· Increase in the territorial coverage to 85% vs. 77% at the end of 2003
· Increase in the population coverage to 98% vs. 95% at the end of 2003 The company extensively increased its roaming partners network, as a result of which roaming revenues posted an impressive growth. Currently GloBul has active roaming agreements with 259 operators in 119 countries. In August of 2004, Globul also launched Camel roaming for visiting pre-paid roamers.
During the fourth quarter of 2004, the company continued to introduce various tariff reductions, such as the launch of Friends & Family service for residential contract customers in October, where a customer can select to call 3 Globul numbers at rates as low as BGN 0.06 per minute. These changes should stimulate further market growth and further increase mobile usage.
In order to improve the services for its subscribers, the company applied in February 2005 for a fixed line license and intends to participate in the tender for a UMTS license.
COSMOFON MOBILE TELECOMMUNICATIONS AD SKOPJE (MTS)
Cosmofon AD, the new corporate name of MTS, is a wholly owned subsidiary of OTE managed by Cosmote, operating the second mobile telephony license in the Former Yugoslav Republic of Macedonia (FYROM). The company launched commercially under the brand name Cosmofon in June 2003. Since then, the company has acquired more than 233,500 customers, while Operating revenues for the fourth quarter of 2004 reached euro 6.7 million.

6. EVENTS OF THE QUARTER
OTE SIGNS AGREEMENT REGARDING TELECOM SERBIA
OTE, together with the Serbian Government and Telecom Serbia (Telekom Srbija), signed on December 10, 2004 a new Shareholders Agreement, which settled all pending issues that have arisen after the buyout of Telecom Italia's 29% stake in Telecom Serbia by the Serbian Government. The new Shareholders Agreement, which followed the signing of a Memorandum of Understanding on September 20, 2004, included a revision of Telecom Serbia's Articles of Association, in a way that reinforced the minority shareholder rights of OTE, (holder of a 20% stake in the company), the repayment of capital plus interest of a loan extended in the past to Telecom Serbia by OTE, and the settlement of management fees owed to OTE by Telecom Serbia.

OTE ANNOUNCES NEW RETAIL TARIFF RATES

On December 13, 2004, OTE, announced new retail tariff rates. Following approval by the NTPC on December 30, 2004, and as of December 31, 2004, the following new tariffs are in effect:
. The monthly rental of PSTN lines has increased by euro 0.91, reaching euro 11.40 per month, while ISDN-BRA line rental has also increased by euro 0.91, reaching euro 14.90 per month.
. Subscribers of the discount package "OTE options", which offers substantial reductions to retail customers using pre-selected numbers (local, long distance or international), will get up to 4 hours of free calls (three hours local calls and one hour long distance calls) per two months, depending on the size of their bi-monthly bill.
. Subscribers of the discount package "OTE business", which offers substantial reductions to business customers using pre-selected numbers (local, long distance or international), will receive greater discounts (up to 10% in local and 25% in long distance calls), depending on usage.
. Subscribers of the discount package "OTE business Plus", which offers substantial reductions to large business customers, will get greater discounts (up to 10% in local and 25% in long distance calls), depending on usage, and will be enjoying per second charging from the first second of the call.

SUBSEQUENT EVENTS
On February 23, 2005, OTE reached an agreement in principle with the unions representing its fixed-line employees. Pursuant to this agreement, about 6,000 employees, or 35% of the workforce, will be able to take early retirement.

7. OUTLOOK
In 2005, Greek fixed-line operating revenues should benefit partly from regulatory decisions as well as from ADSL penetration and increases in monthly line rentals implemented in the beginning of the year. The February 23 agreement with the Greek fixed-line unions regarding headcount reduction should significantly impact OTE's 2005 accounts. Further information on the charges and expected savings will be provided as soon as the early retirement plan has been finalized with the Greek authorities. Operating revenues and profitability of all other Group activities are expected to continue to progress.

About OTE
OTE is a provider of public, fixed switch domestic and international telephony services in Greece. With local, long distance and international communications services in addition to mobile telephony, internet services, and high-speed data communications, OTE provides consumers and businesses the ability to communicate globally through its extensive network infrastructure. In addition, OTE has a number of International investments in the South East European region and addresses a potential customer base of 60 million people.
Listed on the Athens Stock Exchange, the company trades under the ticker HTO as well as on the New York Stock Exchange under the ticker OTE. In the U.S., OTE's American Depository Receipts (ADR's) represents - ordinary share.
Additional Information is also available on http://www.ote.gr.

Contacts:
OTE: Dimitris Tzelepis - Head of Investor Relations, OTE Group Tel: +30 210 611 1574
E-mail: dtzelepis@ote.gr
Nikos Kallianis, Senior Financial Analyst, Tel: +30 210 611 8167
E-mail: nkallianis@ote.gr
Daria Kozanoglou - IR Communications Officer, Tel: +30 210 611 1121
E-mail: nkozanoglou@ote.gr
Cubitt Consulting: +44 20 7367 5100 (London); +1 212 279 3115 (New York)

Forward-looking statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the Company's future financial results are discussed more fully in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 20-F for 2003 filed with the SEC on July 15, 2004. OTE assumes no obligation to update information in this release.

NOTES
· In line with SEC recommendations on the use of non-GAAP financial measures, OTE has decided to replace the caption "EBITDA" used in prior filings by "Operating income before depreciation and amortization". This item is the sum of "Operating income" and "Depreciation and amortization". Similarly, the previously used "EBITDA margin" caption is henceforth replaced by "Operating income before depreciation and amortization as a percentage (%) of Operating Revenues".
· Following SEC recommendations regarding the application of EITF 01-9 "Accounting for Consideration Given by a Vendor to a Customer", OTE reflects certain commissions relating to pre-paid cards as a reduction of the respective revenues rather than as operating expenses. All comparative quarterly data for 2003 and the first quarter of 2004 were restated accordingly.
· Finally, 2003 comparative data and first quarter 2004 numbers have been restated to reflect the impairment of Cosmorom assets. While this impairment is effective February 2003, its detailed modalities were not completed until the filing of OTE's 2003 Form 20-F on July 15, 2004. All 2003 comparative data provided in this release is consistent with the 2003 Form 20-F.

Exhibits to follow:
I. Condensed Consolidated Balance Sheets as of December 31, 2004 and December 31, 2003 (Under US GAAP)
II. Condensed Consolidated Statements of Operations for the twelve months and three months ended December 31, 2004 and 2003 (Under US GAAP)
III. Condensed Consolidated Statement of Cash Flows for the twelve months ended December 31, 2004 (Under US GAAP)
IV. Operating Revenues for the twelve months and three months ended December 31, 2004 and 2003 (Under US GAAP)
V. Segment Reporting based on the Company's legal structure
VI. International Assets
VII. Operational Highlights

EXHIBIT I - BALANCE SHEETS

Movement in Shareholders equity
2004 Unaudited
Shareholders' equity, January 1 3,590.3
Net Income for the period 132.6
Dividends declared (171.6)
Accumulated other comprehensive income * (160.3)
Unaccrued compensation 0.1
(199.2)
Shareholders' equity, December 31 3,391.1

EXHIBIT II - STATEMENTS OF OPERATIONS
HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Prepared under U.S. GAAP
for the three months and twelve months ended December 31, 2004 and 2003 (euro million)
Q4 04 Q4 03 % 12M 04 12M 03 % Change
Unaudited Unaudited Change Unaudited
Operating Revenues:
Domestic Telephony 566.9 595.7 -4.8% 2,270.4 2,349.5
-3.4%
International Telephony 89.1 99.4 -10.4% 387.8 375.5 3.3%
Mobile telephony services 393.0 340.0 15.6% 1,556.2 1,228.8 26.6%
Other 235.4 268.5 -12.3% 967.3 960.5 0.7%
Total Operating Revenues 1,284.4 1,303.6 -1.5% 5,181.7 4,914.3 5.4%

Operating Expenses:
Payroll and employee benefits (322.0) (285.5) 12.8% (1,241.7) (1,112.2) 11.6%
Voluntary retirement costs 0.0 0.4 -100.0% (28.9) (26.0) 11.2%
Reversal of reserve for retirement contributions 0.0 0.0 54.6
Payments to international operators (60.6) (50.9) 19.1% (190.3) (185.2) 2.8%
Payments to domestic telephony operators (151.6) (155.8) -2.7% (645.9) (609.9) 5.9%
Depreciation and amortization (235.3) (228.4) 3.0% (1,003.1) (909.7) 10.3%
Other operating expenses (419.5) (322.0) 30.3% (1,423.2) (1,107.0) 28.6%
Total Operating Expenses (1,189.0) (1,042.2) 14.1% (4,533.1) (3,895.4) 16.4%
Operating Income 95.4 261.4 -63.5% 648.6 1,018.9 -36.3%
Other income / (expense), net:
Interest income 15.1 12.8 18.0% 49.8 47.6 4.6%
Interest expense (48.2) (47.5) 1.5% (164.4) (143.1) 14.9%
FX gain (loss) 12.9 (4.7) -374.5% 5.3 14.2 -62.7%
Financial net (20.2) (39.4) -48.7% (109.3) (81.3) 34.4%
Investment income / (loss) / writedown / gains on sale 12.1 12.4 -2.4% 13.8 1.4 885.7%
Write-off of management fees related to Telecom Serbia 0.0 0.0
N/A (21.3) 0.0 N/A
Other, net (1.8) (1.9) -5.3% (1.6) (2.8) -42.9%
Total Other income / (expense), net (9.9) (28.9) -65.7% (118.4) (82.7) 43.2%
Income before provision for income taxes and minority interests 85.5 232.5 -63.2% 530.2 936.2 -43.4%
Provision for income taxes (12.4) (107.3) -88.4% (216.0) (377.9) -42.8%
Income before minority interests 73.1 125.2 -41.6% 314.2 558.3 -43.7%
Minority Interests (52.9) (46.3) 14.3% (181.6) (147.1) 23.5%
Net Income before the cumulative effect of accounting change 20.2 78.9 -74.4% 132.6 411.2 -67.8%
Cumulative effect of accounting change 0.0 (0.5) -100.0% 0.0 (0.5) -100.0%
Net Income 20.2 78.4 -74.2% 132.6 410.7 -67.7%

EXHIBIT III - STATEMENT OF CASH FLOWS
HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES
Consolidated Statement of Cash Flows
Prepared under U.S. GAAP
for the three, six and nine and twelve months ended December 31, 2004 is as follows:
(euro million)
Q1 04 Q2 04 H1 04 Q3 04 9M 04 Q4 04 12M 04
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Cash Flows from Operating Activities:
Net income 48.1 45.0 93.1 19.3 112.4 20.2 132.6
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization 248.8 257.6 506.4 261.4 767.8 235.3 1,003.1
Provision for doubtful accounts 26.0 28.1 54.1 30.0 84.1 47.8 131.9
Provision for staff retirement indemnities and youth account 20.0 21.3 41.3 19.5 60.8 21.6 82.4
Provision for management fees due from Telecom Italia 0.0 0.0 0.0 21.3 21.3 0.0 21.3
Minority interests 34.1 39.4 73.5 55.2 128.7 52.9 181.6
Working capital movement and other related movements (85.4) 53.9 (31.5) (83.0) (114.5) 67.2 (47.3)
Net Cash provided by Operating Activities 291.6 445.3 736.9 323.7 1,060.6 445.0 1,505.6
Cash Flows from Investing Activities:
Capital expenditures (177.9) (295.2) (473.1) (171.9) (645.0) (238.7) (883.7)
Acquisition of additional share in consolidated subsidiary 0.0 0.0 0.0 (12.8) (12.8) 0.0 (12.8)
Net Cash used in Investing