New Collective Labor Agreement at OTE

Αthens, December 24, 2014 - The Hellenic Telecommunications Organization SA (OTE SA), announces that the Management of OTE and the OTE Employees Federation (OME-OTE) signed yesterday a new Collective Labor Agreement.

The new Agreement has established new salary grades for new recruits, with entry salary now at €755, significantly higher than current market standards.

For the personnel working at OTE SA today and for the next three years, the new Collective Agreement:

· Safeguards employment, as the company will not proceed with dismissals on financial or operational grounds.

· Maintains the average 11% reduction in salary grades introduced by the previous labor agreement compared to the salaries of 2011 as well as the reduced working hours at 35 per week.

In addition, the agreement stipulates that the majority of OTEPLUS employees will be transferred to OTE, under the new salary grades, plus additional benefits that increase their income.

OTEPLUS employees working in call centers will be transferred to another Group subsidiary, with labor contracts of an indefinite duration.

Finally, it has been agreed that a series of subsidies and benefits will be rationalized in the framework of the company's transformation aiming at further reinforcing its competitive position.

OTE Chairman and CEO, Mr Michael Tsamaz, stated: "Today, OTE management and employees signed another innovative agreement. Amidst the ongoing challenging conditions in Greece, this agreement is shaping new standards for OTE as well as the market; it continues to secure jobs for our people, while the new salary grades increases the income of young people with lower salaries. It creates the necessary conditions for us to become more flexible, remain competitive and continue our investments for our customers, shareholders, and country".

Contacts:

Evrikos Sarsentis - Head of OTE Group Mergers, Acquisitions and Investor Relations

Tel: +30 210 611 1574, Email:  esarsentis@ote.gr

Maria Kountouri - Assistant to the Head of OTE Group Mergers, Acquisitions and Investor Relations

Tel: +30 210 611 5381, Email: mkountouri@ote.gr

Kostas Maselis - Deputy Director, Investor Relations

Tel: + 30 210 611 7593, Email: kmaselis@ote.gr

Sofia Ziavra - Senior Financial Analyst, Investor Relations

Tel: + 30 210 611 8190, Email: sziavra@ote.gr

Christina Chatzigeorgiou - Senior Financial Analyst, Investor Relations

Tel: + 30 210 611 1428, Email: cchatzigeo@ote.gr

Eleni Agoglossaki - Communications & Regulatory Affairs Officer, OTE Group Mergers, Acquisitions and Investor Relations

Tel: +30 210 611 7880, Email: eagoglossak@ote.gr