Announcement  |  Lisbon  |  1 March 2012

Long Position

Portugal Telecom, SGPS S.A. (“PT”) informs that it was notified of the following on The Goldman Sachs Group, Inc. (“Goldman Sachs”)’s interests in PT:

A) 2% threshold exceeded (21 February 2012)

On 21 February 2012, Goldman Sachs held a long position corresponding to 18,591,855 shares representing 2.07% of PT’s share capital and corresponding voting rights, as follows:

·                  Interest on 7,142,816 shares arising from interest held by Goldman Sachs International, indirect subsidiary of Goldman Sachs, acting as custodian for its customers. These shares are, or will be, registered in the name of Goldman Sachs Securities (Nominees), Limited;

·                  Interest on 165,664 shares arising from interest held by the same Goldman Sachs International, acting as custodian for its customers, of 165,664 American Depositary Receipts (“ADRs”). These ADRs are, or will be, held at the Depositary Trust Company of New York (“DTC”);

·                  Interest on 957,473 shares arising from beneficial interest held by the same Goldman Sachs International. These shares are, or will be, registered at Citibank Portugal;

·                  Interest on 427,196 shares arising from interest held by Goldman, Sachs & Co., a wholly-owned direct subsidiary of Goldman Sachs, acting as custodian for its customers. These shares are, or will be, registered in the name of Goldman Sachs Securities (Nominees), Limited;

·                  Interest on 55,491 shares arising from interest held by the same Goldman, Sachs & Co., acting as custodian for its customers, of 55,491 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 130,467 shares arising from beneficial interest held by Goldman, Sachs & Co. (“GS&Co.”), a direct subsidiary of Goldman Sachs. These shares are, or will be, registered in the name of Goldman Sachs Securities (Nominees), Limited;

·                  Interest on 436,936 shares arising from beneficial interest held by the same Goldman, Sachs & Co. (“GS&Co.”), of 436,936 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 8,152 shares arising from interest held by Goldman, Sachs & Co., a wholly-owned direct subsidiary of Goldman Sachs, acting as discretionary manager of 8,152 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 5,416 shares arising from interest held by Goldman Sachs Executions & Clearing, L.P., a subsidiary of Goldman Sachs, of 5,416 ADRs. These ADRs are, or will be, held at the DTC;

www.telecom.pt

2

·                  Interest on 464,611 shares arising from interest held by Goldman Sachs Asset Management, L.P., a wholly-owned subsidiary of Goldman Sachs, acting as discretionary manager. Goldman Sachs believes that some of these shares are, or will be, registered in the name of Goldman Sachs Securities (Nominees), Limited;

·                  Interest on 37,040 shares arising from interest held by the same Goldman Sachs Asset Management, L.P., acting as discretionary manager of 37,040 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 40,000 shares arising from beneficial interest held by Montague Place Custody Services, an indirect subsidiary of Goldman Sachs, acting as custodian for its customers. These shares are, or will be, registered in name of Goldman Sachs Securities (Nominees) Limited;

·                  Interest on 26,596 shares arising from interest held by Goldman, Sachs & Co, a wholly-owned direct subsidiary of Goldman Sachs, acting as custodian for its customers, of 250,000 convertible bonds;

·                  Interest on 170,213 shares arising from interest held by Goldman Sachs International, an indirect subsidiary of Goldman Sachs, acting as custodian for its customers, of 1,600,000 convertible bonds.

It was further communicated that on 21 February 2012 Goldman Sachs’ long position in PT included the following cash settled financial instruments:

3

B) Interest fell below 2% threshold (23 February 2012)

On 23 February 2012, Goldman Sachs held an interest corresponding to 17,707,893 shares representing 1.98% of PT’s share capital and corresponding voting rights, as follows:

·                  Interest on 6,056,431 shares arising from interest held by Goldman Sachs International, indirect subsidiary of Goldman Sachs, acting as custodian for its customers. These shares are, or will be, registered in the name of Goldman Sachs Securities (Nominees), Limited;

·                  Interest on 179,967 shares arising from interest held by the same Goldman Sachs International, acting as custodian for its customers, of 179,967 American Depositary Receipts (“ADRs”). These ADRs are, or will be, held at the Depositary Trust Company of New York (“DTC”);

·                  Interest on 163,354 shares arising from beneficial interest held by the same Goldman Sachs International. These shares are, or will be, registered at Citibank Portugal;

4

·                  Interest on 430,291 shares arising from interest held by Goldman, Sachs & Co., a wholly-owned direct subsidiary of Goldman Sachs, acting as custodian for its customers. These shares are, or will be, registered in the name of Goldman Sachs Securities (Nominees), Limited;

·                  Interest on 56,431 shares arising from interest held by the same Goldman, Sachs & Co., acting as custodian for its customers, of 56,431 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 80,024 shares arising from beneficial interest held by Goldman, Sachs & Co. (“GS&Co.”), a direct subsidiary of Goldman Sachs. These shares are, or will be, registered in the name of Goldman Sachs Securities (Nominees), Limited;

·                  Interest on 126,870 shares arising from beneficial interest held by the same Goldman, Sachs & Co. (“GS&Co.”), of 126,870 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 8,152 shares arising from interest held by Goldman, Sachs & Co., a wholly-owned direct subsidiary of Goldman Sachs, acting as discretionary manager of 8,152 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 8,850 shares arising from interest held by Goldman Sachs Executions & Clearing, L.P., a subsidiary of Goldman Sachs, of 8,850 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 464,611 shares arising from interest held by Goldman Sachs Asset Management, L.P., a wholly-owned subsidiary of Goldman Sachs, acting as discretionary manager. Goldman Sachs believes that some of these shares are, or will be, registered in the name of Goldman Sachs Securities (Nominees), Limited;

·                  Interest on 36,800 shares arising from interest held by the same Goldman Sachs Asset Management, L.P., acting as discretionary manager of 36,800 ADRs. These ADRs are, or will be, held at the DTC;

·                  Interest on 40,000 shares arising from beneficial interest held by Montague Place Custody Services, an indirect subsidiary of Goldman Sachs, acting as custodian for its customers. These shares are, or will be, registered in name of Goldman Sachs Securities (Nominees) Limited;

·                  Interest on 26,596 shares arising from interest held by Goldman, Sachs & Co, a wholly-owned direct subsidiary of Goldman Sachs, acting as custodian for its customers, of 250,000 convertible bonds;

·                  Interest on 170,213 shares arising from interest held by Goldman Sachs International, an indirect subsidiary of Goldman Sachs, acting as custodian for its customers, of 1,600,000 convertible bonds.

It was further communicated that on 23 February 2012 Goldman Sachs’ interest in PT included the following cash settled financial instruments:

5

6

This statement is pursuant to the terms and for the purposes of articles 2 and 2-A of the Portuguese Securities Commission Regulation no. 5/2008, following communications received from Goldman Sachs International, with office at Peterborough Court, 133 Fleet Street, London EC4A 2BB, United Kingdom.

7