Decrease of the share capital of PTC AM and PTCXAM

Date

21/09/2006

Notice Number

06/0892

NOTICE N.º 0892/06

We hereby inform that, on 20^th September, 2006, the share capital of PORTUGAL TELECOM - S.G.P.S., S.A. was reduced from 1.467.513.450,00 to 395.099.775,00 EUR, by changing the nominal value from 1,30 to 0,35 EUR, under the code PTC AM and PTCXAM.

INTERBOLSA, 21^th September, 2006