Lisbon, Portugal, June 19, 2002 - Portugal Telecom (BVLP: PTCO.IN; NYSE: PT) announces that its Executive Committee intends to pursue the Company's current cash dividend payment policy and, should the financial conditions of the Company allow, to propose to the Board of Directors the submission to the shareholders approval at the AGM of a dividend for 2002 higher than the one of 2001.  PT estimates that dividend for 2002 could be approximately Euro 0.16 per share.

Contact:
Vitor Sequeira, Investor Relations Manager
vitor.j.sequeira@telecom.pt

Portugal Telecom
Tel.: +351.21.5001701
Fax: +351.21.3556623