CTT cost accounting system (2004)

By determination of 23 October 2006, and in the scope of the audit carried out by KPMG for the year 2004, approval was granted both to the statement of compliance with the applicable regulatory provisions of the cost accounting system of CTT - Correios de Portugal, and to recommendations and determinations aimed to improve that system.

Statement on the Cost Accounting System of CTT - Correios de Portugal, S.A. for the year 2004, for the purposes of paragraph 2 of article 19 of Law no. 102/99 of 26 July, as amended by Decree-Law no. 116/2003, of 12 June

Considering:

i) That CTT - Correios de Portugal, S.A., as a universal service provider, must, in accordance with paragraph 1of article 19 of Law no. 102/99 of 26 July, as amended by Decree-Law no. 116/2003, of 12 June, have a cost accounting system to determine direct and indirect revenues and expenses derived from all reserved and non-reserved services and to distinguish between expenses for basic activities associated with postal services (collection, handling, transportation and distribution of postal items);

ii) That CTT - Correios de Portugal, S.A., must, in accordance with article 2, paragraph 3, point a), of the Universal Postal Service Price Convention of 20 January 2004, have a cost accounting system to determine expenses associated with each service and, within a given service, expenses associated with the various means of providing the service as well as with the different stages of the production process (collection, handling, transportation and distribution);

iii) That ICP - Autoridade Nacional de Comunicações (ICP-ANACOM) promoted an audit of the 2004 cost accounting system results;

iv) That this audit was conducted by an organization independent from CTT - Correios de Portugal, S.A.;

v) The work carried out by auditors,

ICP-ANACOM hereby declares that, for the purposes of paragraph 2 of article 19 of Law no. 102/99 of 26 July, as amended by Decree-Law no. 116/2003, of 12 June, CTT - Correios de Portugal, S.A.'s cost accounting system results for the year 2004 were produced in compliance with applicable legal and regulatory provisions.

See also:

Notice of 17.11.2006, published on 22 of December http://www.anacom.pt/render.jsp?contentId=980695