Telefónica and Microsoft Extend Reach of Windows Live Services to Millions of Mobile Customers in Latin America

BARCELONA, Spain — Feb. 16, 2009 — Extending the strategic alliance that was first announced last year, Telefónica and Microsoft Corp. today announced that the companies are deploying a range of Windows Live for Mobile client application services that offer an enhanced experience for their mutual customers on their mobile devices. Telefónica, one of the leading mobile operators in Latin America with more than 100 million customers in Latin America, will enable its customers to download a Java- based client application that gives them access to Windows Live Hotmail, Windows Live Messenger and Windows Live Spaces to communicate and share with the people they care about from their mobile phone. The announcement was made at Mobile World Congress 2009.

In addition, Telefónica and Microsoft will also introduce a Windows Live Messenger client pre-installed on a mobile phone SIM card to provide the broadest set of customers with easy access to Windows Live Messenger directly from their mobile phone.* This offering targets the mass market of mobile phone users by embedding the Windows Live Messenger client on the device and enabling it to work over short message service (SMS), which is readily available on most mobile phones today.

“We are extremely excited to extend our strong relationship with Telefónica and make Windows Live mobile offerings available to our mutual customers,” said Brian Arbogast, corporate vice president of Mobile Services at Microsoft. “By enabling customers to choose the best solution for their mobile needs, we are opening the door for many of our 500 million global customers to extend their Windows Live experience to their mobile phone.”

“At Telefónica we believe one of the best ways to maintain customer loyalty is to provide access to Microsoft’s very large Hotmail and Messenger customer base,” said Luis Miguel Gilpérez, director of Mobile Business at Telefónica Latianoamérica. “By partnering with Microsoft, we will grow mobile data use on our network and provide great value for our customers.”

These Windows Live mobile services will become available early this year in a phased rollout across Argentina, Chile, Colombia, Ecuador, El Salvador, Guatemala, México, Nicaragua, Panamá, Perú, Uruguay and Venezuela. Initially customers will need to download the Java client, but over time these services will be preinstalled on the mobile phone device or SIM card.

About Windows Live

More than 500 million customers around the world rely on Windows Live for sharing e-mail, messaging, photos and files within their networks of friends, family, business associates and more. With localized versions being made available globally in 54 countries and 48 languages by early 2009, the next generation of Windows Live brings enhanced tools to make online activities easier, more integrated and more intuitive. The new Windows Live experience is also enhanced by strategic alliances — with feeds from third-party sites that enable users to stay up to date on what’s new with friends and family and see information from other online services such as Flickr, LinkedIn and Pandora — all in a single set of services where they already spend time every day. Over the coming weeks, the next generation of Windows Live will become available at

About Telefónica

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 more than 252 million accesses around the world. Telefónica 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 Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

* Mobile providers may charge a fee for placing calls.

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