LISBON, Portugal -- Portugal Telecom announced today its results for the first half ended 30 June 2007.

In 1H07, consolidated operating revenues amounted to Euro 2,956 million, an increase of 5.4% y.o.y. EBITDA increased by 15.2% y.o.y to Euro 1,147 million, equivalent to a margin of 38.8%, and income from operations increased by 38.3% y.o.y to Euro 606 million. Net income for the period amounted to Euro 429 million. EBITDA minus Capex increased by 17.6% y.o.y to Euro 840 million. As at 30 June 2007, net debt amounted to Euro 4,280 million and after-tax unfunded post retirement benefit obligations totalled Euro 905 million.

PT’s financial results have been prepared in accordance with International Financial Reporting Standards (IFRS). Following the approval of the PT Multimedia spin-off at PT’s Annual Shareholders Meeting on 27 April 2007, PT Multimedia has been considered as a discontinued operation for reporting purposes.

Portugal Telecom SGPS SA (NYSE: PT)