New York, 30 October 2000

4th Annual Capital Link Conference

Dimitris Kouvatsos CFO

Trends in European Telecoms

European Market Liberalisation – Current Status

Data and related value added services liberalised in late 1980’s / early 1990’s

Mobile markets liberalised with the introduction of digital cellular systems (GSM / 2G)

Fixed line voice last segment to be liberalised Driven by EU and national governments Aiming to improve service supply and

technology deployment Broader framework for fixed market

liberalisation set by EU directives Recommended time frame and broad

definitions for national regulatory regime National regulators responsible for

implementing EU-directivesFully LiberalisedMarket

Pre 1998

1998-2001

1.1.1998

Post 2001

Tagus

Loire

Rhine

Donau

Danube

Po

Ebe

Seine

OrkneyIslands

Hebrides

ShetlandIslands

DENMARK

FINLAND

ALBANIA

CROATIA

ANDORRAPORTUGAL

SPAIN

FRANCE

IRELANDKINGDOM

UNITED

SWEDEN

RUSSIA

LATVIA

ESTONIA

LITHUANIA

POLAND

BELARUS

UKRAINE

ROMANIA

MOLDOVA

HUNGARY

BULGARIA

GREECE

TURKEY

MACEDONIA

SERBIA

NORWAY

GERMANY

BELGIUM

NETHERLANDS

AUSTRIA

SLOVENIA

BOSNIA ANDHERZEGOVINA

SWITZ.

CZECHREPUBLIC

MONACO

SLOVAKIA

ITALY

Tagus

Loire

Rhine

Donau

Danube

Po

Ebe

Seine

Tagus

Loire

Rhine

Donau

Danube

Po

Ebe

Seine

OrkneyIslands

Hebrides

ShetlandIslands

DENMARK

FINLAND

ALBANIA

CROATIA

ANDORRAPORTUGAL

SPAIN

FRANCE

IRELANDKINGDOM

UNITED

SWEDEN

RUSSIA

LATVIA

ESTONIA

LITHUANIA

POLAND

BELARUS

UKRAINE

ROMANIA

MOLDOVA

HUNGARY

BULGARIA

GREECE

TURKEY

FYROM

SERBIA

NORWAY

GERMANY

BELGIUM

NETHERLANDS

AUSTRIA

SLOVENIA

BOSNIA ANDHERZEGOVINA

SWITZ.

CZECHREPUBLIC

MONACO

SLOVAKIA

ITALY

Overview of the Greek Telecoms Market

Few Barriers Remaining to Full Market Liberalisation

In the ProcessIn the Process

Fixed line market liberalisation (January 2001)

4-7 WLL licences (before year-end 2000)

New Telecom law - draft submitted

NTPC - Independent Regulatory Authority

Interconnection Regime for fixed line operators

UMTS licences (Q2 2001)

Local Loop Unbundling

Number portability and carrier pre-selection (January 2003)

Equal access

Universal Service Obligation

Future issuesFuture issues

Greek Fixed-Line Market Overview

Strong growth potential from higher utilisation and introduction of VAS services

Lines vs. Revenues Lines vs. Revenues GDP / Capita vs. Fixed Line Penetration GDP / Capita vs. Fixed Line Penetration

EU AVERAGE

Luxembourg

Sweden Denmark

Netherlands

France Germany Finland UK

Greece

Belgium Austria

Spain Italy

Ireland Portugal 40

45

50

55

60

65

70

75

0 10,000 20,000 30,000 40,000

GDP per capita (US$)

Fix

ed

lin

e p

en

etr

ati

on

(%

)

Source: IDCSource: IDC

5,200

5,300

5,400

5,500

5,600

5,700

5,800

5,900

6,000

6,100

6,200

1998

1999

2000

2001

2002

2003

(000

s)

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2,900

3,000

(US

$m)

Total lines Total fixed revenues

5,200

5,300

5,400

5,500

5,600

5,700

5,800

5,900

6,000

6,100

6,200

1998

1999

2000

2001

2002

2003

(000

s)

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2,900

3,000

(US

$m)

Total lines Total fixed revenues

Contract Market ShareContract Market ShareContract Market ShareContract Market Share

0%4Q1999

33.0

22.1

44.9

20%

40%

60%

3Q1998 4Q1998 1Q1999 2Q1999 3Q1999 1Q2000 2Q2000

Panafon STET CosmOTE

Greek Mobile Market Overview

Total Market ShareTotal Market ShareTotal Market ShareTotal Market Share

0%

30%

60%

3Q1998 4Q1998 1Q1999 2Q1999 3Q1999 4Q1999 1Q2000 2Q2000

39.4

29.231.4

Panafon STET CosmOTE

Wireless Penetration - 1H 2000Wireless Penetration - 1H 2000Wireless Penetration - 1H 2000Wireless Penetration - 1H 2000

0%

10%

20%

30%

40%

50%

60%

70%

80% 72

Fin

land

63

Nor

way

60

Italy

53S

pain

52

Por

tuga

l

64

Sw

eden

62

Aus

tria

59D

enm

ark

52

Sw

itzer

land

Bel

gium

46

Gre

ece

46

Fra

nce

47

Ger

man

y

44

Net

herla

nds

50

UK

49

Irel

and

51

First third entrant to capture #2 position

30%

40%

50%

60%

70%

80%

0% 10% 20% 30% 40% 50%

Internet Pentration (%)

Mai

n Li

ne P

enet

ratio

n (%

)

Greek Internet Market Overview

Internet vs. Main Line PenetrationEuropean PC Penetration (%)

Greece

Portugal

Spain

Italy

France

BelgiumAustria

GermanyNetherlands

UK

Denmark

Finland

Sweden

54%

47%

37%33% 32% 32% 30% 29% 28%

20% 20% 18%

7%

0%

10%

20%

30%

40%

50%

60%

Low PC and Internet penetration - High growth potential

OTE Corporate Restructuring

Accelerating Developments

Shareholder and Corporate Issues Board of Directors expanded to 15 members

– CEOs of 3 main subsidiaries

– 1 additional minority shareholder

Executive Committee established Internal restructuring Articles of Association in line with private corporate Law (L2190), as

it stands today

Preparation for liberalisation New round of tariff rebalancing New Telecoms Law soon to be approved

Search for a strategic ally Initial expressions of interest received Expected close by Q2 2001

Realising Value from Reorganisation

Exit from non-core assets OTE Leasing (strategic sale), OTE Exchange (liquidation) and OTE

Insurance (strategic sale)

Realise value from current asset base CosmOTE IPO

Formation of OTE International

Formation of Real Estate subsidiary

New initiatives OTE Global (international wholesale carrier business)

OTE Com (dedicated salesforce for packaged corporate solutions)

CosmoONE (B2B JV)

Under development Digital TV Strategic review of Directories business

Fixed Line

Fixed Line - Preparing for Competition

Greek fixed line market to be liberalised in January 2001

OTE market share erosion potential exists

First emerging fixed line competitors deploying infrastructure

CLECs: COLT, Grapes, SilkRoute

Others: Panafon, STET Hellas, Public Power Corporation

Fixed wireless access competitors

Continued voice tariff rebalancing

95% network digitalisation

Data/ IP

Hellascom (upgrading/ doubling capacity)

ADSL pilot installation

180,000 FTTC customers by year end

IP network deployment

ATM 40 PoPs available (Frame Relay Option)

Digital TV Platform: Interactive Service/fast internet

20,000 km of fibre already installed with 1 million circuits to be offered commercially

Innovative service offerings

Strengthening of business customer distribution and service approach

45% broadband WLL coverage of Attica region (June 2001)

OTE PreparationEmerging Competition

Mobile

CosmOTE Strategy

IPO allows the market to assess wireless business and unlock shareholder value

To Become the Leading Wireless Operator in GreeceTo Become the Leading Wireless Operator in Greece

Strong brand name/

management team

Strong brand name/

management team

Customer Oriented

Pricing

Customer Oriented

Pricing

Superior Network

Superior Network

Innovative

services offering

Innovative

services offering

World Class Partner-

ships

World Class Partner-

ships

Voice and Data Opportunity

Voice and Data Opportunity

BestPositioned

for theFuture

Largest spectrum Largest spectrum Synergies with OTE groupSynergies with OTE group

Accessfor All

SMSSMSSIM MicrobrowserSIM MicrobrowserWAPWAPVoice RecognitionVoice Recognition

TopContent

Open architecture Open architecture World-class partnershipsWorld-class partnerships

MicrosoftMicrosoftYahoo!Yahoo!Virgin MegastoresVirgin Megastores

Offering Tailored

to Customer Needs

MyCosmos MyCosmos PersonalizedPersonalizedInformation & ServicesInformation & Services

Focus on Wireless Data Opportunity

Internet

Greek Penetration / Number of UsersGreek Penetration / Number of Users

Greek Internet Access Market RevenuesGreek Internet Access Market Revenues

Source: IDC

Strong Growth Projections for the Near Future

Source: IDC

0

50

100

150

200

250

1998 1999 2000 2001 2002 2003

(€m

)

Wholesale

Value-Added Services

Business Access

Home Access

Greek e-commerce Spending Greek e-commerce Spending

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1998 1999 2000 2001 2002 2003 2004 2005

(€m

)

Business goods and services Consumer goods and services

Source: Forrester Research

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1998 1999 2000 2001 2002 2003

0%

5%

10%

15%

20%

25%

30%

35%

Number of users ('000)

Penetration (%)

Strong Internet growth projections for Greece (2000-03 CAGR or 36% in terms of penetration)

OTEnet Strategy

Leading ISP in Greece

Accelerated corporate activity from new management team

Ongoing discussions with content providers for partnerships

Exploring acquisitions (domestic and international)

Review of distribution channels and methods

WAP gateway and content

Headline news, financial news, cinema, hotels, pharmacies etc.

e-commerce (platform already available)

Several vertical portals to be launched

Automotive, health, publishing, various online marketplaces etc.

Free e-mail, calendar and directory services

LMDS/ ADSL access trials

Unified Messaging

International Investments

OTE Group - International Reach

OTE now addresses a total customer base of 50m

Telecom Serbia

20% Population: 10.6m 2.2m lines (34% digital) 105,000 mobile subscribers

RomTelecom

35% (51% voting right) Population: 22.8 m 3.7m lines (48% digital) CosmoRom operation end May

Armentel

90% Population: 3.1 m 547,000 lines (18% digital) 8,000 mobile subscribers

International

Albanian Mobile Communications

85% (CosmOTE & Telenor) Population: 3.3m 12,000 subscribers

Integrated approach to international investments

Formation of OTE International to integrate and manage international holdings

Appointment of dedicated executives

Intention to integrate networks

MakTel privatisation is currently in progress

All licenses include fixed and mobile operations

All international investments are net income positive

Group Vision and Strategy

Group Vision and StrategyOTE - From Regional PTT to Modern Telco

Focus in high growth sectors Mobile telephony Data Internet

Enhance competitive position post-liberalisation Network advantage Service integration One-stop shopping

Roll-out converging technologies and broadband IP Platform Broadband access network UMTS

Create shareholder value Acquisition Corporate restructuring Exploit synergies in international investments

Thank you