State television said Mohamed Hussein Tantawi was promoted to deputy prime minister alongside his role as defense minister.
Ahmed Aboul Gheit remains foreign minister.
Samir Mohamed Radwan was named finance minister.
Samiha Fawzi Ibrahim was named trade minister.
Gen. Mahmoud Wagdy, previously head of Cairo criminal investigations department and also a former head of prisons, was named the new interior minister.
The new line-up of Cabinet ministers announced on state television included stalwarts of Mubarak's regime but purged several of the prominent businessmen who held economic posts and have engineered the country's economic liberalization policies the past decades.
The longest-serving Cabinet minister, Culture Minister Farouq Hosni, was replaced by Gaber Asfour, a widely respected literary figure.
Egypt's most famous archaeologist, Zahi Hawass, was named state minister for antiquities, a new post.
The new line-up is part of the reform promised by Mubarak as more and more Egyptians started joining street protests calling for his ouster.
General Wagdy’s predecessor was reviled by many Egyptians because of the repressive tactics used by the police force to quash the opposition and criticism of the president.
But it was not immediately clear if the new Cabinet would be enough to mollify opposition groups and protesters calling for Mubarak and the old guard to step down.
As the unprecedented unrest in the Arab world’s most populous nation entered a seventh day, thousands of protesters poured into Cairo’s Tahrir Square chanting “Get out ... We want you out” and singing Egypt’s national anthem.
Soldiers looked on without taking action, which would have been inconceivable just a week ago.
World leaders were trying to figure out how to respond to a crisis that threatens to tear up the Middle East political map.
In global markets, share prices fell across Asia on Monday and Brent oil hit a 28-month high.
The protests broke out last week when frustration over repression, corruption and the lack of democracy under Mubarak’s 30-year-rule boiled over.
More than 100 people were killed in clashes with security forces in scenes that overturned Egypt’s standing as a stable country, promising emerging market and attractive tourist destination.
Mubarak, a close US ally and a stalwart in Western policy toward the Middle East, responded by offering economic reform to address public anger over hardships.
The army now appears to hold the key to his fate. Although the generals have held back from crushing the revolt, they have also not withdrawn support for Mubarak.
In the early days of the uprising no clear political opposition grouping was evident. But on Monday the Muslim Brotherhood, an Islamist opposition group, said it was seeking to form a broad political committee with Mohamed ElBaradei to talk to the army.
ElBaradei, a Nobel peace laureate and former head of the UN nuclear agency, has urged Mubarak to go and lent his international stature to a movement that has lacked a leader.
The brotherhood, which has wide support among poor Egyptians, has until now kept in the background of an uprising spearheaded by the young urban poor and students, fearing a harsh crackdown.
London-based Exclusive Analysis analyst Zaineb Al-Assam said he doubted Mubarak would last a month in power and that the Muslim Brotherhood, who are well organized, would do well in any election. Power in the streets had already passed to the protesters, he said.
Crowds flocked in the morning to Tahrir Square, which has become the focus of the uprising, to join protesters who had camped out overnight in defiance of a curfew imposed by Mubarak.
Witnesses said camaraderie between the protesters and soldiers was evident as they shared tea and snacks, standing by tanks daubed with anti-Mubarak graffiti.
“The army has to choose between Egypt and Mubarak,” read one banner in the square.
The anti-Mubarak movement has called a mass protest for Tuesday and says one million people could take to the streets.
The United States, which has poured billions of dollars of aid into Egypt since Mubarak came to power, stopped short of saying openly that it wanted him out. President Barack Obama and Secretary of State Hillary Clinton instead urged reform and spoke about “an orderly transition.” Washington has long seen Mubarak as a bulwark in the Middle East, first against communism then against militant Islam.
As the first Arab country to sign a peace treaty with Israel, it plays a key part in the peace process, and a change in administration could have big implications for those efforts.
The crisis in Egypt follows a revolt that toppled the leader of Tunisia three weeks ago and the wave of popular anger is also sweeping other countries in North Africa and the Middle East.
Exclusive Analysis’ Assam said Yemen, Sudan, Jordan and Syria all looked vulnerable to “contagion” but the greatest risk was in Saudi Arabia.
“US interests are the first casualty. Indeed, US allies in the region will be alarmed at the rapid drain of US public support for an erstwhile ally like Mubarak,” he said.
Syria’s President Bashar Al-Assad said there was no chance the upheaval might spread to Syria, which has been controlled by his Baath Party for the last five decades.
In an interview with the Wall Street Journal, Assad said Syria’s ruling hierarchy was “very closely linked to the beliefs of the people” and that there was no mass discontent.
Foreign governments scrambled to ensure the safety of their nationals trapped by the unrest. One group of tourists was hunkered down in the Marriott Hotel in the Egyptian capital waiting to be taken to the airport.
“I had heard a lot about Egypt’s history and the pyramids so I am very disappointed I cannot see all that, but I just want to get out,” said Albert So, an accountant from Hong Kong.
American Susan Market, 43, from Ohio, said she saw a demonstration in Luxor.
“You can tell people are poor, you can tell there is a division between rich and poor, people were asking for money all the time,” she said.
Egypt’s financial markets and banks were closed for the second day in a row.
Global shares continued to slide on Monday while Europe’s benchmark Brent crude was just short of $100 a barrel on fears the unrest could spread among regional oil-producing nations.
Moody’s downgraded Egypt to Ba2 with a negative outlook on the back of the protests.
“Whilst Egypt’s importance to the global economy is limited, its importance to the transportation of oil is huge,” said Jonathan Sudaria at London Capital Group.
