Ote Ads Regulatory News (OTES)

Athens, January 19, 2018 - Hellenic Telecommunications Organization S.A. ("OTE" or the "Company") announces that, on the 18th of January, the Board of Directors approved the Shareholder Remuneration Policy.

The positive prospects of Greek economy and the gradual improvement of its macroeconomic indicators, along with the solid business and financial performance of the Company are supporting the establishment of a medium-term Shareholders' Remuneration Policy. The Policy is defined as follows:

"Provided the external and the macroeconomic environment remain stable, in the mid-term the Company intends to distribute to its shareholders, through a combination of dividend payout and Share Buyback Programs for their cancelation, the free cash flow generated every year, after incorporating the considerations for spectrum acquisitions, and one-off items. The split between ordinary dividends and share buybacks is targeted approximately at 65%/35% respectively in 2018 and in the medium term.

The implementation of the Remuneration Policy will start in 2018 and will take into account the free cash flow projections for the current year, i.e. 2018, as the basis for calculating the aggregate shareholder payout. In the same way, the Remuneration Policy will be applied in the forthcoming years, i.e. the basis for calculating total shareholders' remuneration in 2019 will take into account the projections of free cash flow for 2019 and so on."

In this respect, the Share Buyback Program will be submitted for approval at the next Shareholders' General Meeting and will be executed under the terms of the legal and regulatory framework in force.

The proposed annual dividend for the fiscal year 2017, payable in 2018, is scheduled to be announced together with the 2017 full year results, on the 22nd of February. Based on our current projection for 2018, the estimated aggregate shareholder remuneration amount will reach approximately €260m, after having incorporated the payments for spectrum acquisition and one-off items.

OTE Group Chairman & CEO, Mr. Michael Tsamaz, noted: "We are pleased to announce the Remuneration Policy for our Shareholders, which is fair, robust and reflects their long term support to our business model. The structure of the Policy gives us the flexibility to combine effectively the need to remunerate our shareholders, safeguard our financial capabilities, but also to continue uninterrupted our ambitious capex investment plan, to support the technological development and digitalization of the country, which is equally critical in securing our sustainable growth and success in the future."

This announcement is issued as a Regulated Information, in accordance with Law 3556/2007 [article 3, par. 1 p (bb), and article 21] and Regulation No 596/2014 of the European Parliament and of the Council on market abuse.

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