RELEASE

     Portugal Telecom, SGPS,
Public Company
Registered office: Avenida Fontes Pereira de Melo, 40, Lisbon
Share Capital: 395,099,775 Euros
Registered at the Lisbon Commercial Registry Office
and Corporation number 503 215 058

The Chairman of the General Meeting of Shareholders
informs on the blocking of shares

Lisbon, 20 February 2007 - Following the understanding issued yesterday, 19 March 2007, by the Portuguese Securities Commission (“CMVM”), the Chairman of the General Meeting of Shareholders of Portugal Telecom, SGPS, S.A. (“PT”) informs the Shareholders of the Company on the following:

- As provided for in article 13 of PT’s bylaws, shareholders intending to attend the general meeting must certify, up to five working days prior to the respective meeting, that their shares have been entered in a book-entry account. For such purpose, shareholders must send to the Company, up to the above mentioned deadline, a certificate issued by the financial intermediary with whom the relevant shares are deposited. The issuance of such certificate determines the blocking of the relevant shares until the closing of the General Meeting;

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- Therefore, certificates requested by the Shareholders to the financial intermediaries with whom their shares are deposited which are issued prior to 23 February, i.e., sooner than required by PT’s bylaws, may be freely revoked, upon the delivery of the certificate to the financial intermediary who has issued it. For such purpose, Shareholders shall collect the relevant certificates from Portugal Telecom’s registered offices but only until 23 February;

- Thus, after 23 February, the release of certificates communicated to the services of the General Meeting of Shareholders of Portugal Telecom by Shareholders or their financial intermediaries will not be considered. This deadline for the blocking of shares is set forth in the law and by PT’s bylaws, and it is imposed by the circumstances related to the logistics of the preparation of a General Meeting of a company listed on a regulated market with a broad shareholder base, as is the case of Portugal Telecom.

- Additionally, it must be noted that the deadline for the blocking of shares set forth in Portugal Telecom’s bylaws follows CMVM’s Recommendations on corporate governance.

The Chairman of the General Meeting of Shareholders

Prof. Doutor António Manuel da Rocha e Menezes Cordeiro

This information is also available on PT’s IR website http://ir.telecom.pt

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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.