23 dead bodies were found in Egyptian city of Alexandria following the demonstrations on Friday, Al-Jazeera TV channel reported on Saturday.
In a late-night television address, President Hosny Mubarak rejected calls for him to step down, and instead he called on his cabinet to resign.
In his 11-minute speech he said a new cabinet would be named on Saturday and he warned against chaos while promising "new steps leading toward more democracy" and improvements in living standards, job opportunities and health care.
But after the 82-year-old leader's speech, demonstrators continued with their demand that Mubarak must go. The former military general has been in power since the October, 1981 assassination of then- president Anwar Sadat.