Egyptian President Hosny Mubarak in the early hours of Saturday ordered the existing government and ministers to step down and promised a new leadership, dpa reported.
Mubarak was making his first address to his nation since anti- government protests erupted this week, appealing for calm and promising reform. But protests continued in the country even as he made his address, with some calling for the president's ouster.
"I regret the innocent victims and causalities on both sides, citizens and police personnel," said Mubarak, after reports indicated more than 20 people had died during the protests.
He appealed directly to the people and said he understood they wanted him to address poverty, employment and democratic reform and pledged progress.
Saying there was "a fine line between freedom and chaos" he urged calm, adding that only because of his own reforms over the years, were people able to protest.
Mubarak, aged 82, has ruled Egypt for nearly 30 years.