03.05.2006 10:00:00

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

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 MovilesEspana, accompanied by Isabel Aguilera, General Director of Google(Spain) and Enrique Fernandez-Laguilhoat, Operations Director ofMicrosoft (Spain), presented today three important additions toemocion, movistar's mobile portal. These comprise a flat-rate persession for the access to 'emocion', and two new services that areincorporated for the first time by a Spanish operator into its mobileportal: the Google Search Engine, and access to webmail providers suchas MSN Hotmail from Microsoft, Yahoo, Terra, and Telefonica.net.

With the new flat rate per session, users will have unlimitedaccess 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 willknow at all times how much they will pay for browsing and accessingcontent.

This new offer to access emocion's content becomes more meaningfulby turning emocion into the gateway to all the content available inmobile phones thanks to the integration of world-leading services, forthe first time in the portal of a Spanish mobile phone operator, suchas the Google Search Engine and MSN Hotmail mail from Microsoft;besides the email services of providers that are very popular amongSpanish 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, thesearch results will include links to external Internet content. In asubsequent phase, results will incorporate content from emocion.Google will use its technology and its indexing and content updatingexpertise to turn emocion into the starting point to access theInternet from a mobile phone.

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

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

"The new services from emocion that we announce today will allowmovistar users to avail themselves of the best content to enjoy uniqueleisure, information, and productivity experiences - such as music,videogames, TV in the mobile, maps, and ticket purchasing - withoutworrying about the cost", says Belen Amatriain, Chief ExecutiveOfficer of Telefonica Moviles Espana.

"Google is excited to work with Telefonica Moviles to provide itsusers with one-click access to the mobile Internet," explains IsabelAguilera, General Director of Google (Spain). "Using Google'sinnovative mobile search products, Movistar users can now effortlesslyfind their favorite content and answers to questions while on the go."

"The goal of this alliance is to make access to email universallyavailable. The customer can send emails from his mobile as if he weredoing so from his PC enabling him to better maximize his time.Moreover, he will be able to access the contact list that he hasstored in Hotmail as well as creating new entries in the agenda thathe will be able to look from his PC", says EnriqueFernandez-Laguilhoat, Operacions Director of Microsoft (Spain). "Theagreement between movistar and MSN Hotmail, both leaders in theiractivities, gives users the chance to manage their communicationsneeds in a more efficient way".

The providers of emocion's services, which currently add to morethan 400, are the leading brands in all verticals, always providingthe most novel content. The quality of the content maximizes theenjoyment of the user experience through sound and the most powerfuland spectacular images.

The current catalog of emocion's sercices (more than 500) can beclassified 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.

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