To date, apart from Foreign Ministry spokesman Hossam Zaki's phoned-in appearances on CNN and al-Jazeera to explain that a) the protests are being exaggerated by the media and b) they prove that Egypt is democratic, I have not seen any reaction by the Egyptian government to the biggest protests in decades.
The explanation is simple: Mubarak does not want to stoop to responding to these protests.
If you only knew Hosni as I do, you'd know he's terribly stubborn. He likes to dig in his heels. He won't be forced into a decision. He is a like a gamoosa (water buffalo, as common as cows in Egypt) that just won't be moved off a railroad track. This is his strength and weakness: this stubbornness can be determination (in the 1980s and 1990s, against radical Islamists), but it can also be his Achilles' heel, his inability move quickly to grab opportunities.