Statement on PT Comunicações, S.A., Analytical Cost Accounting System for the purposes of no. 5 of the Ministerial Order of MEPAT nº15021/99 (II Series) and Article 35 (no. 2) of the Regulations for the Operation of the Fixed Telephone Service

Considering that:

i. In December 1996, after ICP-ANACOM had defined the general principles of PT Comunicações, S.A.'s, cost accounting system, this operator officially informed ICP-ANACOM that it had implemented an analytical cost accounting system within the framework of the Concession Contract of the Public Telecommunication Service;

ii. ICP-ANACOM conducted audits of the said system based on the 1996 to 2000 financial years;

iii. Such audits were carried out by entities independent of PT Comunicações, S.A.;

iv. In the context of the recently completed audit of the 2000 financial year, the cost accounting system was declared to be in compliance with the obligations laid down in Article 13 of Directive 95/62/EC, Article 18 of Directive 98/10/EC, Paragraph 3 of the Order of the Ministry of Equipment, Planning and Territorial Administration no15021/99 (2nd Series) and the Telecommunication Prices Convention,

ICP-ANACOM declares, for the purpose of Paragraph 5 of the Order of the Ministry of Equipment, Planning and Territorial Administration no 15021/99 (2nd Series) Article 35(2) of the Regulations of the Operation of the Fixed Telephone Service, that the results of PT Comunicações, S.A.'s, cost accounting system for the 2000 financial year were produced in accordance with the rules defined in Paragraph 3 of the Order of the Ministry of Equipment, Planning and Territorial Administration no 15021/99 (2nd Series) and Article 34 of the Regulations for the Operation of the Fixed Telephone Service.