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TELEFÓNICA WILL START SELLING THE NEW APPLE IPHONE 3G FROM TOMORROW

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10/07/2008 The Company has designed a wide ranging commercial offer for distribution in over 1,500 points of sale in Spain TELEFÓNICA WILL START SELLING THE NEW APPLE IPHONE 3G FROM TOMORROW " The agreement with Apple includes selling the device in over 16 countries. The first models will be available tomorrow in Spain, the United Kingdom and Ireland. " In only 30 days, following the agreement with Apple to start selling the iPhone on 11 th July, over 200,000 users have registered and logged into Telefónica´s website stating their interest in purchasing the handset.

" Telefónica has created a varied commercial offering suitable to all customers wishing to acquire the new iPhone 3G, with substantial sales support and facilities to reduce the final price of the device (see the attached annex). Telefónica today presented in Madrid the price proposal for the new and innovative Apple® iPhone" 3G, which it will start selling from tomorrow in over 1,500 points of sale throughout Spain. The offer includes significant support and facilities to give all customers access to the new device at very attractive prices.

The new iPhone 3G combines all of the previous device 9s revolutionary characteristics plus added features such as the 3G-HSDPA ... more. less.

network and Telefónica mobile broadband. In addition, it is twice as fast as the first generation of iPhones, it includes GPS to integrate location-based mobile services and iPhone 2.0, the software to synchronize with Microsoft Exchange. Moreover, the device will work with hundreds of applications created with the SDK of iPhone 3G.<br><br> Telefónica will be the world 9s main ambassador for iPhone 3G, since it will distribute it in 16 countries 3 Spain, the United Kingdom, Ireland, the Czech Republic, Argentina, Brazil, Chile, Colombia, Ecuador, El Salvador, Guatemala, Nicaragua, Panama, Peru, Uruguay and Venezuela. Since 10 th June, over 200,000 users, around half of whom are with other mobile providers, have registered on the company 9s website showing their interest in acquiring the new device. For further information, please contact: I NVESTOR RELATIONS Telf: (+34) 91 482 8700 3 Fax: (+34) 91 482 8599 María García-Legaz maria.garcialegaz@telefonica.es Dolores García dgarcia@telefonica.es Isabel Beltrán i.beltran@telefonica.es During the presentation of Apple 9s new model, the general manager of Telefónica España Guillermo Ansaldo stated that cthis launch is the culmination of two years characterised by an innovation leadership strategy aimed at offering our customers the best mobile devices and the most advanced services d.<br><br> He also pointed out that cthis is a road on which we are still making progress, with the aim of continuing to develop an Information Society better adapted to the possibilities brought by new technologies. This is the case of the new Apple iPhone 3G which we will be selling from tomorrow and which we are sure will mark a 8before 9 and an 8after 9 in the market d. A market for which Telefónica has created a varied commercial offering suited to all mobile telephony customers, regardless of whether they are new customers, customers from other companies or movistar users, with sales support and facilities to give them the chance to obtain the best and most innovative device at the best possible prices.<br><br> The commercial offering designed by Telefónica for the iPhone 3G, both for its private and business customers and for customers of other operators who are interested in the device, will combine users 9 traditional voice usage with the new iPhone and iPhone Plus flat rate tariffs for data especially designed for the iPhone 3G and its new capabilities, such as 3G-HSDPA Internet browsing or the capplications Apple store d developed specifically for this handset. At a monthly price of ¬25, Telefónica 9s iPhone Plus Flat Rate Tariff will include 1GB of data on Telefónica 9s 3G-HSDPA network. This tariff will include unlimited data traffic in Telefónica España 9s almost 2,200 wi-fi hot spots and access to the new Visual Voice Mail, which turns voicemail into a service similar to the user 9s e-mail.<br><br> At ¬15 a month, the iPhone Flat Rate Tariff has the same advantages as the above tariff in terms of services, with 200 MB of 3G-HSDPA data per month. Thus, for example, combining the ¬15 data tariff with a minimum voice usage of ¬40, the 8GB iPhone 3G will cost ¬39. With the same ¬15 data tariff and a minimum voice usage of ¬20, the 8GB iPhone 3G will have a price of ¬129.<br><br> And users on the ¬25 data tariff who use ¬60 of voice services will get the device for free. Any users who choose any of the above options and wish to acquire the 16 GB iPhone 3G must add an additional ¬60 to the final price. Existing movistar customers can obtain an iPhone 3G through the points-based loyalty schemes 3 Plan de Puntos 3 also from ¬0.<br><br> Customers on the ¬25 flat rate data tariff can thus get the 8GB handset for free with 75,000 points. Customers on the same tariff who redeem 60,000 points will pay ¬34 for the device, and those using 29,000 points will pay ¬100. For further information about Telefonica 9s iPhone 3G tariffs: www.movistar.es Annex: iPhone 3G offering Residential clients offering Business clients offering I iPhone Plus Flat Rate 25 ¬ /month 24242424 C.A Unico C.E.<br><br> Tramos Horarios C.E. Tarifa Unica C.A. 15 Club Mi Negocio C.A.<br><br> 30 C.E 30 Plan 30 C.A. 60 y 90 C.E 60 y 90 Plan 60 y 90 Movistar y Fijos Migration 299 ¬ 149 ¬ 49 ¬ 0 ¬ New take-up 299 ¬ 149 ¬ 49 ¬ 0 ¬ Portability 269 ¬ 129 ¬ 39 ¬ 0 ¬ 8GB iPhone RSP BUSINESS CLIENTS (8GB iPhone) Compatible Contracts/Billing plans Minimum contract duration (months) Mandatory Service IPhone Flat Rate 15 ¬ /month 9 20 40 60 90 2424242424 Contrato Movistar Mi Gente Tiempo Libre Único 24 horas Contrato Movistar Mi Gente Tiempo Libre Único 24 horas Contrato Movistar Mi Gente Tiempo Libre Único 24 horas Contrato Movistar Mi Gente Tiempo Libre Único 24 horas Contrato Movistar Mi Gente Tiempo Libre Único 24 horas Migration 299¬ 149¬ 49¬ 0¬0¬ New take-up 299¬ 149¬ 49¬ 0¬0¬ Portability 269¬129¬39¬ 0¬0¬ Migration 359¬ 209¬109¬ 59¬0¬ New take-up 359¬ 209¬109¬ 59¬0¬ Portability 329¬189¬ 99¬ 59¬0¬ 8 GB iPhone RSP 16 GB iPhone RSP RESIDENTIAL CLIENTS Compatible Contracts/Billing plans Minimum contract duration (months) Mandatory service Minimum voice consumption iPhone Flat Rate 15¬ /month iPhone Plus Flat Rate 25¬ /month Business clients offering II Loyalty scheme offerings 299 ¬ 6,500 149 ¬ 6,500 263 ¬ 23,500 133 ¬ 14,000 197 ¬ 54,000 100 ¬ 29,000 130 ¬ 85,000 66 ¬ 45,000 66 ¬ 115,000 34 ¬ 60.,000 0 ¬ 145,700 0 ¬ 75,800 359 ¬ 6,500 209 ¬ 6,500 322 ¬ 23,500184 ¬ 18,500 241 ¬ 61,000137 ¬ 40,000 162 ¬ 98,00092 ¬ 6,.000 80 ¬ 136,000 45 ¬ 83,000 0 ¬ 173,300 0 ¬ 104,000 8GB iPhone RSP 16 GB iPhone RSP Points Points LOYALTY SCHEMES (RESIDENTIAL and BUISNESS) Minimum contract duration (months) Mandatory service 2424 iPhone Flat Rate 15 ¬ /month iPhone Plus Flat Rate 25 ¬ /month 2424242424 C.A Unico C.E. Tramos Horarios C.E.<br><br> Tarifa Unica C.A. 15 Club Mi Negocio C.A. 30 C.E 30 Plan 30 C.A.<br><br> 60 C.E 60 Plan 60 C.A. 90 C.E 90 Plan 90 Movistar y Fijos Migration 359¬ 209¬ 109¬59¬0¬ New take-up 359¬209¬109¬59¬0¬ Portability 329¬189¬99¬ 59¬0¬ 16 GB iPhone RSP BUSINESS CLIENTS (iPhone 16GB) Compatible Contracts/Billing plans Minimum contract duration (months) Mandatory service iPhone Flat Rate 15¬ /month iPhone Plus Flat Rate /month 15¬

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