PRESS RELEASE June 9, 2008

Telefónica and Apple to Bring iPhone 3G to Spain on July 11

MADRID and SAN FRANCISCO—June 9, 2008—Telefónica and Apple® today announced that they will bring the highly anticipated iPhone™ 3G to Spain on July 11. iPhone 3G combines all the revolutionary features of iPhone with 3G networking that is twice as fast* as the first generation iPhone, built-in GPS for expanded location based mobile services, and iPhone 2.0 software which includes support for Microsoft Exchange ActiveSync and runs the hundreds of third party applications already built with the recently released iPhone SDK.
“iPhone 3G offers new, more advanced and innovative features than its predecessor, and we expect it will have the same success in Spain as it has had in the UK and Ireland with Telefónica O2,” said César Alierta, Telefónica chairman.
“We’re excited to work with Telefónica, one of the world’s leading carriers, to bring iPhone 3G to Spain,” said Tim Cook, Apple’s COO. “We can’t wait to get this revolutionary phone in the hands of even more people around the world.”
Telefónica’s 3G mobile network and Wi-Fi infrastructure in Spain are the most technologically advanced networks in Spain and offer the broadest coverage at present. They offer data download speeds of 7.2 Mbps on the HSDPA mobile network and more than 2,000 Wi-Fi hot spots.
Moreover, iPhone 3G will drive growth in Telefónica’s 3G customer base in Spain. Telefónica signed up more 3G customers than any operator in Spain in the fourth quarter of the last year and now services over 4.2 million devices.
iPhone 3G will sell in Telefónica’s top stores and more than 3,500 points of sale in Spain, first in Madrid in its new flagship store on Gran Via Street, opening on July 8.
Mobile customers of Telefónica en España and other operators in Spain wishing to know where, when and for how much they can acquire iPhone 3G may register at
Telefónica’s experience marketing iPhone in Europe, following the launch in the UK (November 2007) and later in Ireland (March 2008), has clearly been a success. Sales in the UK have been huge, fueling net adds (especially in the contract segment) since its launch, and enjoys the highest level of customer satisfaction of any handset on the market.
*Based on 3G and EDGE testing. Actual speeds vary by site conditions.
Telefónica is one of the world’s largest telecommunications companies by market cap. Its activities are centered mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It operates in 24 countries and its customer base exceeds 233 million globally. Telefónica’s growth strategy is focused on the markets in which it has a strong foothold: Spain, Europe and Latin America. Telefónica is a 100 percent private company. It has more than 1.5 million direct shareholders. Its share capital consists of 4,773,496,485 ordinary shares traded on the continuous market on the Spanish Stock Exchanges (Madrid, Barcelona, Bilbao and Valencia) and on those of London, Tokyo, New York, Lima, Buenos Aires and São Paulo.

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