Press release

• ICT industry driving economic recovery in European Union

Brussels - Telefónica has now expanded its networks into 26 countries in Europe to serve the communications needs of multinational corporations (MNCs) across the region.  In addition to its six established territories in Europe, Telefónica this summer opened offices in 15 European countries and is extending its reach into a further five new territories in the bloc.

Telefónica's integrated communications services are playing a significant part in driving the competitiveness of the European economy by improving business productivity and competitiveness for multinational corporations in Europe, including BMW, Dell, DHL Deutsche Post, BBVA Group, PSA Peugeot Citroen and Scottish Power.

Earlier this year, Deutsche Post DHL and Telefónica announced that the German logistics company had selected Telefónica to manage its communications services across 28 European countries over the next five years to help it save more than €150 million in costs over the period.

Matthew Key, Chairman and CEO of Telefónica Europe, said: "Multinational corporations across Europe are seeking new ways to heighten efficiency while controlling the costs related to their increasingly complex communications needs. This is more evidence that telecommunications is improving business productivity and competitiveness and becoming as essential pillar for governments to promote a renewed European economic model.  The new offices and network infrastructure being deployed in Europe reinforces our commitment to this strategically important market segment."

Telefónica operates national telecoms networks in Spain, Czech Republic, Germany, Ireland, Slovakia and UK and has MNC commercial offices in Austria, Belgium, Bulgaria, Denmark, Estonia, France, Greece, Hungary, Italy, Netherlands, Poland, Portugal, Romania, Sweden and Switzerland. Telefónica also retains strategic partnerships in to serve MNC customers in Finland, Latvia, Lithuania, Norway and Slovenia.

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About Telefonica
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation.  Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both.  The company has a significant presence in 25 countries and a customer base that amounts to 264 million accesses around the world. Telefonica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy.  Telefónica is a 100% listed company, with more than 1.5 million direct shareholders.  Its share capital currently comprises 4,704,996,485 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, Tokyo, New York, Lima, Buenos Aires and São Paulo.

About Telefónica Europe
Telefónica Europe is a business division of Telefónica comprising mobile, fixed and DSL operations in the UK, Ireland, Germany, the Czech Republic and Slovakia - all of which use 'O2 as their consumer brand. Telefónica Europe also has 50% ownership of the UK and Irish Tesco Mobile and German Tchibo Mobilfunk joint venture businesses.  In addition, the group includes the Isle of Man integrated fixed/mobile operator, Manx Telecom.  Telefónica Europe is headquartered in Slough, UK, and has some 46.7 million mobile and fixed customers.

Media enquiries:
Telefónica S.A.
Corporate Communications
Press Office Tel: +34 (91) 482.38.00
prensa@Telefónica.es

Simon Lloyd
Telefónica Europe
+44 (0) 7912 072 777
simon.lloyd@o2.com

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