OTE Chief Says Consolidation With Cosmote "Best Solution"

ATHENS -(Dow Jones)- The consolidation of Hellenic Telecommunications Organization (OTE) and its Cosmote mobile telephony unit remains the "best solution" for the group as it braces for increased competition, OTE Chief Executive Panagis Vourloumis said Tuesday.

"I continue to believe that the consolidation with Cosmote is the best solution for the group," Vourloumis said in a lunch meeting with journalists.

However, he stressed that he did not favor an outright merger of the two companies, and that Cosmote Mobile Telecommunications - 66.7% controlled by OTE - would and should remain largely independent.

OTE, the former monopoly telephone company of Greece has seen its share of the Greek market decline to 73% and expects increased competition to cut further into revenues in the years ahead.

In the past, Vourloumis has said that by fully consolidating OTE with Cosmote, the group would be better able to serve its customers and offer bundled services - including fixed-line telephony, broadband and mobile services -in one package.

In the past several weeks, Cosmote's two major rivals - Wind Hellas and Vodafone Hellas, a unit of Vodafone - have both announced plans for bundled services in the hope of luring away OTE and Cosmote customers.

Company Web site: www.ote.gr

-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881; alkman.granitsas@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 3rd July 2007