Google and MSN Hotmail Lead the New Portal Services; Movistar Turns 'Emocion' into the New Flat-Rate Gateway to Cell Phone Content

Business Wire, May 3, 2006

MADRID, Spain -- Telfonica Moviles (NYSE:TEM) (MAD:TEM):

--Movistar breaks the access cost barrier to entertainment and information content in 'emocion' with a flat rate of 0.30 euros.

--The inclusion of the Google Search Engine to 'emocion' will make it easier and faster to access content.

--The agreement with MSN Hotmail and other providers allows real-time access to the user's regular email accounts.

Belen Amatriain, Chief Executive Officer of Telefonica Moviles Espana, accompanied by Isabel Aguilera, General Director of Google (Spain) and Enrique Fernandez-Laguilhoat, Operations Director of Microsoft (Spain), presented today three important additions to emocion, movistar's mobile portal. These comprise a flat-rate per session for the access to 'emocion', and two new services that are incorporated for the first time by a Spanish operator into its mobile portal: the Google Search Engine, and access to webmail providers such as MSN Hotmail from Microsoft, Yahoo, Terra, and Telefonica.net.

With the new flat rate per session, users will have unlimited access to content and services from both 'emocion' and the Internet, at only 0.30 euros per session, which, until the month of September, will have no time expiration. This initiative helps users, who will know at all times how much they will pay for browsing and accessing content.

This new offer to access emocion's content becomes more meaningful by turning emocion into the gateway to all the content available in mobile phones thanks to the integration of world-leading services, for the first time in the portal of a Spanish mobile phone operator, such as the Google Search Engine and MSN Hotmail mail from Microsoft; besides the email services of providers that are very popular among Spanish users, such as Yahoo!, Terra, and Telefonica.net.

Google Search Engine and MSN Hotmail mail.

With the inclusion of Google as emocion's main search engine, users will be able to search for content based on keywords, facilitating the exploration and discovery of services. Initially, the search results will include links to external Internet content. In a subsequent phase, results will incorporate content from emocion. Google will use its technology and its indexing and content updating expertise to turn emocion into the starting point to access the Internet from a mobile phone.

With the agreement signed with MSN Hotmail, the user will be able to access his Hotmail accounts as if he were doing so from the web. He will be able to compose new emails, read the emails that he has received, access his contact list, or create a new account. Likewise, users will be able to access their Yahoo, Terra, and Telefonica.net accounts.

The mobile and web access are perfectly synchronized so that the sent emails are stored in the 'Sent Items' folder of the service, the contact list is the same, and the SPAM rules apply equally in the mobile interface, among other advantages.

"The new services from emocion that we announce today will allow movistar users to avail themselves of the best content to enjoy unique leisure, information, and productivity experiences - such as music, videogames, TV in the mobile, maps, and ticket purchasing - without worrying about the cost", says Belen Amatriain, Chief Executive Officer of Telefonica Moviles Espana.

"Google is excited to work with Telefonica Moviles to provide its users with one-click access to the mobile Internet," explains Isabel Aguilera, General Director of Google (Spain). "Using Google's innovative mobile search products, Movistar users can now effortlessly find their favorite content and answers to questions while on the go."

"The goal of this alliance is to make access to email universally available. The customer can send emails from his mobile as if he were doing so from his PC enabling him to better maximize his time. Moreover, he will be able to access the contact list that he has stored in Hotmail as well as creating new entries in the agenda that he will be able to look from his PC", says Enrique Fernandez-Laguilhoat, Operacions Director of Microsoft (Spain). "The agreement between movistar and MSN Hotmail, both leaders in their activities, gives users the chance to manage their communications needs in a more efficient way".

The providers of emocion's services, which currently add to more than 400, are the leading brands in all verticals, always providing the most novel content. The quality of the content maximizes the enjoyment of the user experience through sound and the most powerful and spectacular images.

The current catalog of emocion's sercices (more than 500) can be classified into three large groups:

--Leasure and entertainment: videogames, music, ringtones, and wallpapers ...

--Information services and utilities: news, sports, banking, stocks, maps

--Communication services: mobile email, IM, etc.