OTE GETS 8 BIDS FOR ARMENTEL

Financial Mirror, Cyprus
June 6 2006

Hellenic Telecom Organisation (OTE) has received 8 non-binding bids
for its 90% stake in Armentel, which may fetch up to USD 140 mln,
according to Greek press reports.

The Russian press meanwhile reported that AFK Sistema has submitted
an interest to bid in the Armentel, Sistema’s Chairman Vladimir
Yevtushenkov said.

The stake is currently owned by Greece’s OTE, which said in late April
that it planned to sell the stake. The remaining 10% in Armentel is
held by the Armenian government.

Armentel is a privately owned monopoly having a near lock of the fixed
and mobile telephony in Armenia and is widely accused of stalling
the rapid growth of telecommunications in the country.

Armentel boasts 600.000 fixed line subscribers and 330.000 mobile.

During 2005, the OTE subsidiary reported USD 145.3 mln turnover and
profit of USD 55.9 mln.