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From next week on, Telefnica Mviles will put on sale, in over 2,000 outlets throughout Spain, a new 3G data card -the 'UMTS Sample Pack'- as well as a new telephone model, the LG U8150, which it will sell exclusively in Spain.

In addition, before year end, Telefnica Mviles shall extend marketing of these new services to the entirety of its retail network. Over the same period, the Company's UMTS network - which already provides coverage in all Spanish provinces -, will extend to 100 cities, representing 40% of the population.

Our services
Next week, Telefnica Mviles will launch its new 'UMTS Sample Pack', the first rechargeable product of its kind in Spain (customers can top up available credit in order to continue to "surf" once initial credit is consumed). The 'UMTS Sample Pack' is part of Oficin@ MoviStar providing high speed access to services such as e-mail, Internet and Intranet. It consists of a PCMCIA data card using UMTS/GPRS technology and a prepaid card containing two promotional offers, the first for data consumption (200 Mbytes) and the other for text messages (100 SMS).

Costing 299 euros, including VAT, the biggest advantage to customers is its ease of use, since it does not require a contract and accordingly is not subject to monthly fees. Customers can either top up their cards with data bytes (100 Mbytes for 80 euros) or, alternatively, switch to any kind of contract. For example, with the "C Data Module", each Mbyte costs just 0.5 euros. Today, Telefnica Mviles is already marketing UMTS/GPRS data cards from 99 euros (including VAT) for use with contracts.

Pioneer Plan
In order to promote the sale of handsets and to develop the market for video services, Telefnica Mviles has designed the 'Pioneer Plan' (www.movistar.com/umts). With this plan, all customers who acquire a 3G handset before 31 December, 2004 will receive a 50% discount on replacing their handsets at the end of 2005, in addition to receiving information on the best offers and sales promotions available at any given time, ongoing information regarding new services (e-news), as well as access to an exclusive web channel.

Network rollout
Hand in hand with its marketing effort aimed at providing its customers with new services, Telefnica Mviles continues to roll out its UMTS infrastructure, to which it has committed investment of 1 billion euros between 2003 and 2006. To date, the Company has a network in Spain consisting of over 2,500 UMTS base stations already in service. The Company's target for the end of 2004 is to extend coverage to all cities with over 100,000 inhabitants, representing over 100 cities. As a result, Telefnica Mviles' UMTS coverage will reach 40 per cent of the Spanish population by year end.