Through a world-wide deal with Amobee Media Systems for an Ad Servertechnical platform, Telefónica will provide a single point of contact foragencies and advertisers wishing to buy, deploy and monitor campaignsacross all mobile channels.

Telefónica is now the world's only company to support all mobile channelswith a single ad-server that supports WAP, games, video, messaging andother in-built applications providing the best user experience for its 170million customers. Mobile users will also benefit from relevant targetedads while having cheaper access to premium services when opting-in toreceive advertisements.

Julio Linares, Chief Operating Officer, Telefónica, said: "The key tosuccessful mobile advertising is doing it in a contextual and non intrusiveway, which our global opt-in ad-serving solution enables us to do. Thebenefits of a common vendor across the Telefónica group are that we areable to truly look at a common architecture that will drive cost savingsfor design and testing as well as reduce deployment times."

Linares added: "We believe we are accelerating the uptake of mobileadvertising in all Telefónica mobile businesses across Europe and LatinAmerica and will generate revenue from mobile advertising well beyond WAPand Mobile Internet."

"Winning the global Telefónica business is a huge vote of confidence forAmobee," Zohar Lekovitz, CEO of Amobee Media Systems, said. "Mobile is thenext mass medium, delivering reach and relevancy that blows awaytraditional media formats. With over 170 million mobile users globally,Telefónica is setting a new standard for how advertisers reach their targetaudiences."

The single centralised ad server enables precise contextual and behaviouraltargeting across all users on all handsets for all non-voice relatedapplications and services including WAP banners, games, video and musicplayers, applications, messaging (SMS & MMS), ring back tones as well asvideo & music streaming.

Telefónica retains complete control of the solution which means that eachoperating business will have access to customer data, localisation,behavioral profiles and the opt-in database. The business will theninstruct the Ad-Server to deliver a relevant ad to customers with a certainprofile and handset type.

The advertising impressions from the Amobee platform occur in a relevant,contextual and non-intrusive manner, thus giving the users control over theengagement. The alliance with Amobee will enable Telefónica to fund itsgrowing number of mobile data services, while ensuring that customers getbetter value, as well as a richer mobile experience.

Deployment begins in the UK, Spain, Mexico and Colombia this year, and willroll out across the remainder of Telefónica's regional businesses in 2009.

*1 Informa forecasts worldwide mobile ad revenues will rise to $11.35billion (GBP5.48 billion) by 2011.

About Telefónica

Telefónica is one of the largest telecommunications companies in the worldin terms of number of clients and market capitalisation. Its activities arecentred mainly on the fixed and mobile telephony businesses with broadbandas the key tool for the development of both.

The company has a significant presence in 24 countries and a customer basethat amounts more than 233 million accesses around the world. Telefónicahas a strong presence in Spain, the rest of Europe and Latin America, wherethe company focuses its growth strategy.

Telefónica is a 100% listed company, with more than 1.5 million directshareholders and its share capital currently comprises 4,773,496,485ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona,Bilbao and Valencia) and on those in London, Tokyo, New York, Lima, BuenosAires and São Paulo.

About Amobee Media Systems

Headquartered in Redwood City California, Amobee Media Systems is the mostdeployed telco-grade ad-serving solution. Amobee is dedicated to mobileoperators, allowing them to dynamically insert advertising impressions inall forms of mobile communication and content: WAP Browsing, Video & Music,SMS, MMS, applications and Games. Amobee's complete ad serving solution isdesigned to facilitate the launch of advertising campaigns for brandbuilding, direct response and lead generation helping mobile operators andtheir subscribers "get more for less." The company enjoys financial backingfrom some of the biggest names in venture capital: Accel Partners, SequoiaCapital, and Globespan, as well as strategic investments from two leadingoperators: Vodafone and Telefónica.