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Portugal Telecom, SGPS S.A. (“PT”) hereby informs that it has received the following communications on qualified holdings in PT:

1. On 8 July 2010, Deutsche Bank AG (“DB AG”)’s holding in PT became less than 2% of the voting rights corresponding to the share capital of PT.
   
   This change resulted from the sale on 8 July 2010, by DB AG, of 1,132,825 PT ordinary shares in an over the counter transaction. As a result of such transaction, DB AG held a total of 17,128,182 ordinary shares representing 1.91% of PT’s share capital and corresponding voting rights.
   
   Additionally, PT was informed that such holding was attributed to DB AG through the following entities:
   • DB AG: 3,590,436 ordinary shares representing 0.40% of the share capital and voting rights in PT;
   • Deutsche Asset Management Investmentgesellschaft mbH: 71,684 ordinary shares representing 0.01% of the share capital and voting rights in PT;
   • Deutsche Asset Management (Japan) Limited: 345 ordinary shares representing 0.00004% of the share capital and voting rights in PT;
   • Deutsche Investment Management Americas Inc: 125,280 ordinary shares representing 0.01% of the share capital and voting rights in PT;
   • DWS Investment GmbH: 12,556,291 ordinary shares representing 1.40% of the share capital and voting rights in PT;
   • DWS Investment SA, Luxembourg: 694,389 ordinary shares representing 0.08% of the share capital and voting rights in PT;
   • Frankfurt-Trust Investment-Gesellshaft mBH: 82,757 ordinary shares representing 0.01% of the share capital and voting rights in PT;
   • Sal Oppenheim (France) S.A: 7,000 ordinary shares representing 0.0008% of the share capital and voting rights in PT.
2. On 9 July 2010, DB AG’s holding in PT became higher than the threshold of 2% of the voting rights corresponding to the share capital of PT.
   
   The change in such holding resulted from the acquisition on 9 July 2009, by DB AG, of 2,820,533 PT ordinary shares in an over the counter transaction. As a result of such transaction, DB AG now holds a total of 19,948,715 ordinary shares representing 2.23% of PT’s share capital and corresponding voting rights.
   
   Additionally, PT was informed that such holding is attributed to DB AG through the following entities:
   
   • DB AG: 6,905,969 ordinary shares representing 0.77% of the share capital and voting rights in PT;
   • Deutsche Asset Management Investmentgesellschaft mbH: 71,684 ordinary shares representing 0.01% of the share capital and voting rights in PT;
   • Deutsche Asset Management (Japan) Limited: 345 ordinary shares representing 0.00004% of the share capital and voting rights in PT;
   • Deutsche Investment Management Americas Inc: 125,280 ordinary shares representing 0.01% of the share capital and voting rights in PT;
   • DWS Investment GmbH: 12,061,291 ordinary shares representing 1.35% of the share capital and voting rights in PT;
   • DWS Investment SA, Luxembourg: 694,389 ordinary shares representing 0.08% of the share capital and voting rights in PT;
   • Frankfurt-Trust Investment-Gesellshaft mBH: 82,757 ordinary shares representing 0.01% of the share capital and voting rights in PT;
   • Sal Oppenheim (France) S.A: 7,000 ordinary shares representing 0.0008% of the share capital and voting rights in PT.

This statement is pursuant to the terms and for the purposes of article 17 of the Portuguese Securities Code, following communications received on 14 and 15 July 2010, from Deutsche Bank AG London, with offices at 23 Great Winchester Street, London EC2P 2AX, United Kingdom.