Portugal Telecom Shares Decrease In The S&P European Indices

Standard & Poor’s will make the following changes in the S&P Europe 350, S&P Euro Plus and S&P Euro indices effective the close of trading Monday, January 10, 2005:

• Portugal Telecom, SGPS, SA (Portugal, SEDOL: 5817186, GICS: Telecommunication Services, GICS Code: 50101020), a member of the S&P Europe 350, S&P Euro Plus and S&P Euro indices, shares will decrease to 1,166,485,050. This is following the company’s buyback, and subsequent cancellation, of ordinary shares.

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