Company Profile For Portugal Telecom, S.G.P.S., S.A.

Portugal Telecom SGPS SA is a Portugal-based holding company that provides telecommunications services mainly in Portugal, Brazil and certain countries in Africa. The Company services include wireline services, which consists of fixed line telephone services for residential and nonresidential customers, leased lines, unbundled local loop access and wholesale line rental, interconnection, Internet access, dial-up and broadband asymmetric digital subscriber line (ADSL), data and business solutions, portal and e-commerce services through its subsidiaries, in particular PT Comunicacoes SA (PT Comunicacoes); mobile telecommunications services, such as voice, data and Internet-related services in Portugal through its subsidiary, Telecomunicacoes Moveis Nacionais SA (TMN) and in Brazil through its 50%-owned joint venture Vivo; Internet protocol television (IPTV) and direct-to-home (DTH) satellite pay television services, through PT Comunicacoes, and sales of telecommunications equipment.

BRIEF: For the six months ended 30 June 2009, Portugal Telecom SGPS SA's total revenue decreased by less than 1% to EUR3.23B. Net income for the period increased 2% to EUR256.1M. Total revenue reflects unfavorable market conditions as well as a decrease in demand for the Company's products and services. Net income for the period benefited from higher earnings from equity in affiliates as well as from lower other financial costs.