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Portugal Telecom, SGPS S.A. (“PT”) informs that it was notified by Barclays Plc that, on 17 January 2012, there was a change in the composition of Barclays Plc’s long position in PT as a result of the disposal in an OTC transaction of 8,000,000 PT shares, as well as the purchase of a forward contract over 8,000,000 PT shares. Both transactions were executed by Barclays Capital Securities Ltd. Barclays Plc’s overall long position in PT remained above the 2% threshold of reportable interests as was previously disclosed.

It was further communicated that Barclays Capital Securities Ltd currently holds the following financial instruments:

Finally, PT was informed that Barclays Plc now holds a long position corresponding to 22,640,950 ordinary shares representing 2.53% of PT’s share capital and corresponding voting rights, as follows:

• Barclays Bank PLC - France: 944 ordinary shares held, representing 0.0001% of the share capital and voting rights in PT;
•  Barclays Capital Inc: 54,300 ordinary shares held, representing 0.01% of the share capital and voting rights in PT;
•  Barclays Capital Securities Ltd: 22,354,822 ordinary shares (corresponding to 11,883,266 ordinary shares held, 10,300,000 ordinary shares via physically settled financial instruments and 171,556 ordinary shares via cash settled financial instruments), representing 2.49% of the share capital and voting rights in PT;
• Barclays Wealth Managers Portugal – SGFIM S.A.: 107,330 ordinary shares held, representing 0.01% of the share capital and voting rights in PT;
• Palomino Limited: 123,554 ordinary shares held, representing 0.01% of the share capital and voting rights in PT.

This statement is pursuant to the terms and for the purposes of articles 2 and 2-A of the Portuguese Securities Commission Regulation no. 5/2008, following a communication received from Barclays Plc, a company incorporated under the laws of the United Kingdom, with head office at 1 Churchill Place, London E14 5HP, United Kingdom.