1. Summary of action undertaken

Under terms of the legal and statutory provisions, specifically as per paragraph c) of article 12 of the Statutes of the Instituto das Comunicações de Portugal (ICP), approved by Decree-Law no. 283/89 of 23 August, it is our duty to submit the report on our audit and to issue an opinion on the ICP's Annual Report and Accounts for the fiscal year ending on 31 December 2001.

During the fiscal year under review Decree-Law no. 309/2001 of 7 December was approved; it took force at the beginning of 2002 and defines the new Statutes of the ICP. As a consequence of this, its designation was changed to ICP - Autoridade Nacional de Comunicações (ICP-ANACOM) and it became a truly independent regulatory body. The mission of ICP-ANACOM is thus to regulate, oversee and represent the communications sector, continuing the corporate entity of the ICP, though severing itself from its previous legal status as a public institute.

The Statutory Audit Committee held meetings and accompanied the most relevant aspects of the Institute's management, namely implementation of the budget and:

- analysed, based on a sampling, the available financial information, with a favourable result;

- took note of the Report of the External Audit drawn up by the firm PriceWaterhouseCoopers, Lda., responsible for effecting the Audit of the ICP's accounts for fiscal year 2001. This firm worked with the Chartered Accountant in the discharge of his specific duties.

It maybe pointed  that we did not take into account the opinion of the Advisory Board.