TMN Reached 201,758 Net Additions in the Second Quarter of 2001.

Business Editors

LISBON, Portugal--(BUSINESS WIRE)--Aug. 23, 2001

Portugal Telecom, SGPS, S.A. (NYSE:PT; BVLP:PTCO.IN) announced today that TMN reached 201,758 net additions in the second quarter of 2001, an increase of 74% over the same period last year.

In the first half of 2001, TMN totaled 408,068 net additions, up 86% over the same period last year.

As of June 30, 2001, TMN total active customer base reached 3,347,336, an increase of 43% over June 30, 2000.

This information is also available at www.telecom.pt.

This press release contains forward-looking statements. Such statements are not statements of historical fact, and reflect goals of the company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the results of operations of the company to be achieved may be different from the company's current goals and the reader should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the company does not undertake any obligation to update them in light of new information or future developments.

Portugal Telecom is listed on the Lisbon and New York Stock Exchanges and traded on London SEAQ International. Information may be accessed on the Reuters 2000 Service under the symbols PT and PTCO.IN, on Bloomberg and Quotron under the symbol PT.