Cairo, Feb 11, (IANS) : Hosni Mubarak, who ruled Egypt with an iron hand for over three decades, stepped down as President today and handed over power to the army capitulating under mass protests sweeping the country's streets for the last 18 days. 

President Hosni Mubarak resigned and handed over power to the military, announced the recently appointed vice president Omar Sulaiman on state television.

Tahrir Square, the epicentre of the anti-government protests, erupted in joy with tens of thousands of people shouting 'Egypt is Free".

The end of a despotic regime in most populous Arab nation came one week after the protesters set a deadline of 'Departure Friday' for 82-year- old Mubarak to step down as President.

Mubarak is the second leader to quit after protests broke out across Arab streets in what is called the 'Jasmine Revolution'. A fortnight ago, Tunisian President Ben Ali fled the country after protests rocked his nation.

"President Hosni Mubarak has decided to step down as president of Egypt and has assigned the higher council of the armed forces to run the affairs of the country," Suleiman said in a brief televised address.

Mubarak and his wife left their presidential palace in Cairo today and international media reported that he had fled to the Red Sea resort of Sharm-el-Sheikh, his favourite holiday destination.

Suleiman's statement was greeted with uproar by the lakhs of people gathered at the Tahrir Square as flag-carrying youth danced in joy and hugged each other.

Earlier, protesters marched to the President's Palace and to the state television headquarters, seen as symbols of the state authority, angered by Mubarak's refusal to quit and the Army's statement declaring support to him.

Thursday night, Mubarak's told the nation that he would remain in office but cede some powers to his hand-picked vice president Omar Suleiman.

In response, throngs of people gathered in cities across the country, their anger and frustration mounting. "Mubarak must go! He is finished!" protesters in Cairo's Tahrir Square shouted, as a sea of people waved red-white-and-black Egyptian flags.

"Oh, Mubarak, be patient! The people will dig your grave."

Earlier today, Egypt's military chiefs pledged to back Mubarak's decision to remain in office and hand over some powers to Suleiman.

The supreme military council said it would guarantee "free and honest" elections after Mubarak's term expires, and a lifting of Egypt's 30-year-old state of emergency once calm returned to the streets.

The military chiefs asked the protesters to go home, saying there is a need to "return to normal life."

Instead, the protests that have raged here for 18 days only stepped up, with repeated signs that the soldiers posted on the streets to watch over the demonstrations supported their efforts.

The protests were held throughout the country with workers unions, journalists and clerics too joining in.