SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of December, 2004

Commission File Number 1-13758
 
 

PORTUGAL TELECOM, SGPS, S.A.
(Exact name of registrant as specified in its charter)
 

Av. Fontes Pereira de Melo, 40
1069 - 300 Lisboa, Portugal
(Address of principal executive office)
 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____

RELEASE


Share Capital Reduction from Euro 1,254,285,000 to
Euro 1,166,485,050
under the Share Buyback Programme

Lisbon, Portugal, 29 December 2004 - Portugal Telecom, SGPS, S.A. (PT), pursuant to article 248 of the Portuguese Securities Code and to article 2, number 1, subparagraph g) of the CMVM’s (Portuguese Securities Market Commission) Regulation No. 04/2004, announces that:

1.

According to the resolution of the General Meeting of 2 April 2004, and for the purposes of the implementation of a share buyback programme and the corresponding share capital reduction up to Euro 125,428,500, PT acquired until 24 December 2004, inclusively (date defined at the above mentioned resolution), a total of 87,799,950 treasury shares, corresponding to 7.0% of its share capital.

2.

Pursuant to the same resolution, PT executed yesterday the notarial deed for the reduction of its share capital in the amount of Euro 87,799,950, through the cancellation of 87,799,950 treasury shares. As a result, PT’s share capital will correspond to Euro 1,166,485,050, and is pending registration with the Commercial Registry.

This information is also available on PT’s IR website http://ir.telecom.pt.

Contact: Nuno Prego, Investor Relations Director
  nuno.prego@telecom.pt
 
 
  Portugal Telecom
  Tel.: +351 21 500 1701
  Fax: +351 21 500 0800


Portugal Telecom is listed on the Euronext and New York Stock Exchanges. Information may be accessed on Reuters under the symbols PTCO.IN and PT and on Bloomberg under the symbol PTC PL.

 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: December 29, 2004

 
PORTUGAL TELECOM, SGPS, S.A.
By:
/S/  Nuno Prego
Nuno Prego
Investor Relations Director
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.