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Portugal Telecom, under the terms and for the purposes set forth in paragraph e) of article 1 of CMVM Regulation no. 5/2008 [and in paragraph f) of no. 2 of article 249 of the Portuguese Securities Code (“Código dos Valores Mobiliários” or CVM)], and following the press release published on 25 July 2008, informs that:

1. As resolved in the General Meeting held on 28 March 2008 and for the purposes of the execution of the share buyback programme and the corresponding share capital reduction of up to Euro 3,077,400, PT acquired until 10 December 2008 a total of 46,082,677 treasury shares, corresponding to 4.89% of its share capital.
2. Pursuant to the terms of the same resolution, PT has registered the reduction of its share capital in the amount of Euro 1,382,480.31 through the cancellation of 46,082,677 treasury shares. As a result, PT’s share capital is now equivalent to Euro 26,895,375 and is represented by 896,512,500 shares.
3. This operation and consequently the cancellation of treasury shares will be concluded by the Central de Valores Mobiliários (the stock exchange’s clearinghouse) on 18 December 2008.
4. As of today, PT does not hold any own shares in treasury.

In addition, PT informs that the total number of outstanding shares, adjusting for the 20,640,000 shares held through an equity swap, contracted under a previous share buyback programme, recognised in the balance sheet is 875,872,500.

Contact:
Nuno Vieira, Investor Relations Director
nuno.t.vieira@telecom.pt
Tel.: +351 21 500 1701
Fax: +351 21 500 0800