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Portugal Telecom, SGPS S.A. ("PT") hereby informs that it was notified of the following regarding a qualified holding of Citigroup Inc.:

A) 2% threshold exceeded (27 June 2014)

This change was due to the acquisition on 27 June 2014 by Citigroup Global Markets Limited of 1,047,315 PT ordinary shares. As a result, Citigroup Inc. held a qualified holding corresponding to 18,779,555 shares representing 2.09% of PT's share capital and corresponding voting rights.

Additionally, PT was informed that this qualified holding was held as follows:

Holdings in PT ordinary shares:

> Citigroup Global Markets Limited: 17,579,555 ordinary shares representing 1.96% of the share capital and voting rights in PT;

Holdings in financial instruments:

> Citigroup Global Markets Limited: 1,200,000 ordinary shares via a swap, representing 0.13% of the share capital and voting rights in PT.

B) Position fell below 2% threshold (1 July 2014)

This change is due to Citigroup Global Markets Limited disposal, on 1 July 2014, of 2,025,575 PT shares. As a result, Citigroup Inc. now holds a position corresponding to 17,153,722 ordinary shares representing 1.91% of PT's share capital and corresponding voting rights.

Additionally, PT was informed that this position is held as follows:

Holdings in PT ordinary shares:

> Citigroup Global Markets Limited: 15,953,722 ordinary shares representing 1.78% of the share capital and voting rights in PT.


Holdings in financial instruments:

> Citigroup Global Markets Limited: 1,200,000 ordinary shares via a swap, representing 0.13% of the share capital and voting rights in PT.

PT was further informed that the parent company Citigroup Inc. controls Citigroup Global Markets Limited through the following chain of companies:

> Citigroup Global Markets Holding Inc., Citigroup Financial Products Inc. and Citigroup Global Markets Europe Limited.

This statement is pursuant to the terms and for the purposes of articles 17 of the Portuguese Securities Code and 2 of the Portuguese Securities Commission Regulation no. 5/2008, following communications received from Citigroup Global Markets Limited, with registered office at Gateway Offices, 60-62 Sydenham Road, Belfast, BT3 9DT, Ireland.

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