Current affairs - 07.12.2004

About TELLAS S.A.

PUBLIC POWER CORPORATION S.A.



                                                          ANNOUNCEMENT

In accordance with the decision 5/204/2000 of the Capital Market Committee, the following is announced: With reference to the publication of the newspaper "To Vima" on Sunday December 05 2004 in the section "Development", where information regarding the company TELLAS SA is featured but it is totally inaccurate causing confusion to the investing public and investors of PPC SA, we would like to let you know the following:

1. TELLAS is a Societe Anonyme and it was established from the joint venture of the companies PPC SA and Wind Spa. The participation of Wind is 50% plus 1 (one) share and of PPC is 50% less one share. Therefore, PPC is the minority shareholder of TELLAS SA and the company's management belongs to the Italian Wind according to the shareholders' agreement.
2. On the grounds of the shareholders' agreement and the approved 10year business plan of Tellas incorporated in this agreement, the contribution of the shareholders (PPC and Wind) in the share capital of Tellas is predicted at 150 mil euros (75 mil euros each), with the rest funds to be drawn from banks. Today, both shareholders have already contributed by approximately 50 mil euros each. It is hereby noted that the investment plan of PPC SA levels 750 mil euros on an annual basis.
3. TELLAS SA launched its commercial operation in February 2003. Today it is the biggest fixed-line telephony company after OTE, since within 20 months (October 2004) the company holds 12% of the fixed telephony market in relation to connections number and 10% corresponding to overall traffic.
4. Furthermore, the subscribers' basis of TELLAS presents an ongoing growth, resulting in the company reaching over 650,000 connections in October 2004.
5. Finally, it is worth mentioning that the financial results of TELLAS compared to the company's initial 10year business plan present a considerable improvement. The predicted turnover in 2004 presents 150% increase compared to 2003 and it is anticipated to amount to approximately 110 mil euros. Also, in the months of September and October of the current fiscal year, TELLAS already presents positive EBITDA results, sooner than anticipated in its 10year business plan.


Athens, December 7, 2004

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