Egyptian President Hosni Mubarak said on Tuesday he would surrender power in September, angering protesters who want an immediate end to his 30-year-rule, and prompting the United States to say change "must begin now."
The 82-year-old leader said he would not seek re-election when his presidential term ends in September. "I will work in the remaining months of my term to take the steps to ensure a peaceful transfer of power," he said in televised address.
And to those demanding he leave Egypt, he said, "This is my country... and I will die on its soil."
His 10-minute speech was greeted with dismay among protesters whose numbers swelled in millions across Egypt on Tuesday after week-long demonstrations.
"We will not leave! He will leave!" some chanted.
Washington, caught off guard by the wave of anger over oppression and hardship which has spread from Tunisia to one of its closest Arab allies, added pressure on Mubarak to speed up his response while stopping short of calling on him to quit.
"What is clear and what I indicated tonight to President Mubarak is my belief that an orderly transition must be meaningful, it must be peaceful and it must begin now," President Barack Obama said after speaking to him by phone.
But inside Egypt the immediate future remained unclear.
Soon after Mubarak's speech, state television, which had largely ignored anti-government protests, broadcast footage of a demonstration held by a small group of people in support of the president.
At Cairo's Tahrir, or Liberation, Square, focus of protests for a week, people defying a curfew bitterly criticized Mubarak for failing to heed their call for him to quit.
"The speech is useless and only inflames our anger," said Shadi Morkos. "We will continue to protest."
Army role crucial
Much will depend on the army, once Mubarak's power base, which has dominated Egypt since it toppled the monarchy in 1952.
Many see it as trying to ensure a transition of power that would allow it to retain much of its influence. It has promised not to fire on protesters and called their demands legitimate.
But some analysts said tensions could rise even within the army if Mubarak were to hang on too long, and if senior officers were seen to be protecting a leader who had lost legitimacy.
"The longer this goes on, the more people will associate the military top brass with Mubarak. That is very dangerous," said Faysal Itani, deputy head of Middle East and North Africa Forecasting at Exclusive Analysis.
"It will put enormous strain on the security services."
A British-based cleric from the Muslim Brotherhood, the officially banned Islamist party and the most organized Egyptian opposition group, also said there was a risk of conflict.
"It will add fuel to the fire. His speech will bring the danger of conflict in the country. We were expecting him to be stubborn, but not to that extent," Kamel el-Helbawy said.
Retired diplomat Mohammed ElBaradei, who has emerged as a leading figure in the opposition, was quoted by CNN calling Mubarak's move a "trick."
Tuesday's demonstration was an emphatic rejection of Mubarak's appointment of a new vice president, Omar Suleiman, and an offer to open a dialogue with the opposition.
Many protesters spoke of a new push on Friday to rally at Cairo's presidential palace to dislodge Mubarak: "This won't fly any more," said 35-year-old doctor Ahmed Khalifa. "If Egyptians stay on the streets till Friday, probably Mubarak's next offer will be to step down right away."
PHOTO CAPTION
Effigies of Egyptian President Hosni Mubarak can be seen hanging from traffic lights, as Egyptian protesters gather in Tahrir Square, early Wednesday, Feb. 2, 2011.
Al-Jazeera