www.telefonicamoviles.com

Telefnica Mviles has chosen Ericsson and Siemens to supply radio access for the second stage in the rollout of its UMTS network in Spain.

Telefnica Mviles Espaa' selection process involves a strategic and stable relationship with two of the suppliers with the widest experience and knowledge of UMTS network deployment in the world. This, together with its technological expertise in other cellular systems, guarantees Telefnica Mviles Espaa will be able to deploy a high quality, effective voice and data network and will in the future be able to draw on the most advanced 3G developments in the shortest time possible.

The second stage in the rollout of Telefnica Mviles Espaa' UMTS network will provide coverage for the range of Third Generation (3G) products and services the company plans to offer in 2004 to all its clients, subject to handset availability.

The Company aims to have between 7,000 and 8,000 UMTS base stations by 2005, requiring an investment of some one billion euros on 3G infrastructure in 2003-2006.

At present, as a result of the first stage of deployment, the company has UMTS coverage in 52 provincial capitals in Spain, with 1,100 base stations installed.

As proof of its commitment to developing new mobile telephony services and its leadership of the Spanish market, on 29 October 2003 Telefnica Mviles Espaa announced the launch of the first pre-commercial UMTS service in Spain in a real environment. This service is based on the distribution to a group of large customers in Spain of 2,500 UMTS PCMCIA cards, enabling them to access all UMTS 'Oficina MoviStar' data services (internet, intranet and e-mail) from a laptop PC at speeds of up to 384 kbit/s - even faster than standard ADSL lines.