PT Fined for Abuse

LISBON, Portugal -- Portugal Telecom, SGPS, S.A. informs that its subsidiary PT Comunicações, S.A. (“PT”) was sanctioned by the Portuguese Competition Authority (“AdC”), for alleged abuse of dominant position by refusing to provide access to its ducts.

The AdC applied a fine of Euro 38 million, of which Euro 200 thousand refers to 20 denials to provide access between 2001 and 2003, and the remaining Euro 37.8 million refers to 19 denials to provide access between 2003 and 2005.

This sanction is not only undue, but, above all, is inexplicable and disproportionate.

PT regrets that this was the outcome of the investigation conducted since July 2003 by the AdC, and considers the censure to be unfounded and unfair. PT can only express its astonishment at the fine that has been applied, having thus decided to lodge an application for annulment of this decision with the courts.

Portugal Telecom SGPS SA (NYSE: PT)