Agreement for the sale of Hellas Sat

Press Release

Agreement for the sale of Hellas Sat

·; €208 million inflow for ΟΤΕ

·; Sovereign rights of Greece and Cyprus safeguarded

Athens, February 7 2013

OTE announces the signing of an agreement to sell its 99.05% stake in Hellas Sat which manages the HellasSat2 satellite, to Arabsat, the leading satellite services provider in the Middle East and Africa and one of the world's top satellite operators.

OTE will receive total proceeds of €208 million from the sale of its share in Hellas Sat representing 99.05% of:

• the value of Hellas Sat, amounting to €157 million, which corresponds to 7 times the EBITDA of Hellas Sat for 2012, and

• the cash held by Hellas Sat on the date of completion of the transaction, estimated at €53.4 million.

In addition, OTE will receive €7 million as dividends.

OTE's Chairman and CEO, Mr. Michael Tsamaz, noted: "We achieved a significant agreement, which ensures the best possible and advantageous terms while adding value to all shareholders. The Greek and Cyprus governments partner with a reputable operator, who can undertake the necessary investments to retain the sovereign rights of Greece and Cyprus in space and safeguard their position as space-faring nations. Hellas Sat is being sold to a leading satellite communications operator with substantial growth prospects and with a keen interest to develop further its presence in the economies of Greece and Cyprus. OTE divests Hellas Sat at a satisfactory price, allowing us to focus on our core business."

The transaction is expected to be completed in Q2 2013 after all necessary procedures have been finalized and is subject to approval by the competent authorities.

The Hellenic Aerospace Industry (HAI), one of the current minority shareholders of Hellas Sat, remains in the new shareholding structure of the company, along with its preemption rights as per the Articles of Association of Hellas Sat.

The buyer is Arabsat Cyprus Ltd, a 100% subsidiary of Arab Satellite Communications Organization. Arabsat is one of the leading providers of satellite services worldwide. Having launched 15 satellites in its history, Arabsat currently operates six spacecrafts, offering the most extensive satellite coverage in the Middle East and Africa, while it is in a rapid expansionary course aiming to launch three "sixth generation" satellites. With a revenue growth of 24%, ArabSat was the fastest growing satellite services provider in the world in 2011.

Barclays acted as OTE's financial advisor.

Information

NOTE: This announcement is done by The Hellenic Telecommunications Organization SA (OTE SA), as "Regulated information" in accordance with Law 3556/2007, 1/434/03.07.2007 Decision of the Hellenic Capital Market Commission, article 13 of Law 3340/2005 and 3/347/12.07.2005 Decision of the Hellenic Capital Market Commission.

For more information on Arabsat kindly visit www.arabsat.com

About Hellas Sat

Hellas Sat was founded in 2001 and is the exclusive manager of the Greek and Cypriot satellite Hellas-Sat 2. Hellas Sat 2 is one of the most powerful satellites with wide European coverage and was successfully launched in May 2003. Apart from Europe, the satellite Hellas Sat 2 covers the Middle East and South Africa. It has over 100 customers in 26 countries, which are active in the covered areas by offering a wide range of satellite services, including satellite television, news coverage, satellite internet and digital satellite services, enhancing strategically the orbital position of 39 degrees East, to which approximately 2.5 million antennae of subscribers are facing today. Hellas Sat's commitment is the constant provision of comprehensive, reliable and top quality satellite services. The company employs 65 scientists in Greece and Cyprus, and the satellite is fully controlled by TT&C stations in Greece and Cyprus. Hellas Sat 2012 revenues amounted to €31 million.