1xRTT (1x) Radio Transmission Technology. 2.5G wireless technology based on the CDMA platform. 1xRTT is also referred to as CDMA2000. topo 3G Third Generation is a generic term, covering several technologies for mobile networks (UMTS, W-CDMA and EDGE), that integrate mobile multimedia services and allows higher data transmission rates than GSM technology.  topo ADR American Depositary Receipt. Depositary certificate listed and traded on the New York Stock Exchange in representation of a foreign share. 1 PT ADR = 1 PT share. topo ADSL Asymmetric Digital Subscriber Line. Technology that allows high volume data transmission (broadband) over traditional phone lines. topo ARPH Average Revenue per Household. Monthly average retail revenues (Wireline + Pay-TV) per number of households in the period. topo ARPU Average Revenue per User. Monthly average service revenues per average number of users in the period. topo Capex Capital Expenditure. Investments in tangible and intangible assets. topo Cash flow The difference between cash inflows and cash outflows for a specific period. topo CCPU Cash Cost Per User = Monthly average operating costs minus provisions, depreciation and amortisation and cost of equipment sales of equipment per average number of users in the period. topo CDMA Code Division Multiple Access. Wireless interface technology for mobile networks based on spectral spreading of the radio signal and channel division by code domain. topo Churn Rate Disconnection Rate. Number of disconnections during the period per average number of users. topo CMVM Comissão do Mercado de Valores Mobiliários. The Portuguese Securities Market Commission. topo CPI Consumer Price Index topo CRM

Customer Relationship Management

topo Curtailment Costs Work force reduction programme costs. topo DTH Direct-to-Home satellite television. Technology used to provide pay-TV services in areas not covered by Hybrid Fibre Coaxial (HFC) networks. topo EBITDA Earnings Before Interest, Taxes, Depreciation and Amortisation. EBITDA = Operating Income + Depreciation and Amortisation. topo EBITDA Margin EBITDA Margin = EBITDA / Operating Revenues. topo

ERP

Entreprise Resource Planning. Business management system that typically handles the manufacturing, logistics, distribution, inventory, shipping, invoicing and accounting for a company.

topo Euronext Lisbon The domestic stock market upon which PT shares are listed and traded. topo EV-DO Evolution Data Optimised. 3G access technology based on CDMA that provides data transmission speed up to 2.4 Megabits per second. topo Free Cash flow Operating Cash Flow +/-Acquisitions/Sales of Financial Investments +/- Net Interest Paid – Payments related with PRBs – Income Taxes Paid +/- Dividends Paid/Received +/- Other Cash Movements. topo FttH Fiber-to-the-Home. Next generation networkthat brings fibre to the customer premises. topo GAAP Generally Accepted Accounting Principles. topo GDP Gross Domestic Product. topo Gearing Ratio Net Debt /(Net Debt + Equity + Minority Interests). topo Goodwill Goodwill is the excess amount that results if an acquisition cost is higher than the book value of the acquired company. topo HDTV High Definition Television.Transmission of the television signal with a higher resolution than the traditional formats topo GPRS General Packet Radio Service. Technology that allows for higher data transmission rates in GSM networks. topo GSM Global System for Mobile. Internationally standardised digital radio network that allows both voice and data transmission. topo IAS/IFRS International Accounting Standards/International Financial Reporting Standards. The new international accountancy standards being introduced as of 1 January 2005. topo IMF International Monetary Fund. topo Income from operations Income before financials and taxes more workforce reduction costs more losses (gains) on disposal of fixed assets more net other costs topo INE Instituto Nacional de Estatística. The Portuguese Statistics Institute. topo IP Internet Protocol. Standard that specifies the exact format of packets of data as they are transmitted through an Internet network. topo IPTV Internet Protocol Television. Dgital television service available over a fixed telephony line, through a broadband connection. topo ISDN Integrated Services Digital Network. Digital telecommunications network that allows simultaneous voice and data transmission over an access line. topo ISP Internet Service Provider. Company that provides access to the Internet. topo MMS Multimedia Messaging Service. Technology allowing for data such as text, tunes, pictures, photos and brief video sequences to be transmitted via mobile phone. topo MOU Minutes of Usage. Monthly average of outgoing and incoming traffic in minutes per average number of users in the period. topo NGAN Next Generation Access Network. topo NGN Next Generation Network. A high-speed packet or cell-based network that is capable of transporting and routing a multitude of services, including voice, data, video and multimedia. topo NGO Non-Governmental Organisation. topo NYSE New York Stock Exchange. topo Operating Cash flow EBITDA - Capex +/-Change in Working Capital +/- Non-cash Provisions. topo Pay-to-Basic Ratio Total premium subscriptions per number of Pay TV customers. topo PRB Post Retirement Benefits. topo PSTN Public Switched Telephone Network. Traditional telephone system that runs through copper lines. topo R&D Research & Development. topo SARC Subscriber Acquisition and Retention Cost. SARC = (70% of Marketing and Publicity Costs + Commissions + Subsidies) / (Gross Additions + Upgrades). topo SDH Synchronous Digital Hierarchy. Digital technology for synchronous data transmission on optical media at very high speeds. topo SEC US Securities and Exchange Commission. The US regulator for capital markets. topo SIM card Subscriber Identity Module. A chip card inserted into a mobile phone, which contains information such as telephone numbers and memory for storing a directory. topo SMS Short Message Service. Short text messages service for mobile handsets, allowing customers to send and receive alphanumerical messages. topo Triple play offer Integrated offer of voice television and internet services topo UMTS Universal Mobile Telecommunications System. International third generation mobile communication standard that integrates mobile multimedia and telematics services and allows a higher data transmission rates than GSM technology, also referred to as W-CDMA. topo VoD Voice on Demand. System that allows users to select and watch videos topo VoIP Voice over Internet Protocol. Technology allowing for telephone calls using an Internet Protocol topo