Microsoft and Telefonica Extend Reach of Windows Live Services Across Latin America


Regional agreement to provide Windows Live Messenger, Hotmail and more to Telefonica movistar customers in 12 countries.

BARCELONA, Spain, Feb. 11 -- Continuing their mutual commitment to provide customers with a convenient way to stay in touch with people and information, Microsoft Corp. and Telefonica SA, one of the leading integrated operators in the world, today announced that Telefonica has agreed to adopt Windows Live services for mobile phones for all of Telefonica's Wireless Application Protocol (WAP)-based handsets in 12 countries in Latin America, specifically those in which Telefonica operates its cellular services under the brand Telefonica movistar. Customers of Telefonica movistar throughout Latin America will have access to Windows Live Hotmail, Windows Live Messenger and Windows Live Spaces from their phone, enjoying one of the leading instant message, Web mail and communications services worldwide.

Initial Windows Live Services are already available for Telefonica cellular customers in Argentina and Chile, and for Vivo customers in Brazil, and will soon be launched in a phased approach across the rest of the countries. The 12 countries that benefit from this relationship are Argentina, Chile, Colombia, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua, Panama, Peru, Uruguay and Venezuela.

"Microsoft's alliance with Telefonica will enable a much broader group of consumers to experience the benefits that Windows Live has to offer, providing easy access from virtually anywhere," said Matt Champagne, director of product management of the Mobile Communications Business for Microsoft. "Our partnership allows us to extend the value of our key services to customers in Latin America, opening new avenues for increased productivity and seamless connectivity."

"Our collaboration allows both Microsoft and Telefonica to expand the depth and breadth of the services we bring to our mutual customers, driving up mobile usage and facilitating increased connectivity to real-time communications capabilities," said Luis Miguel Gilperez, director, Mobile Business at Telefonica Internacional.

About Telefonica

Telefonica is one of the largest telecommunications companies in the world in terms of market capitalization. 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 24 countries and a customer base that amounts to more than 218 million accesses around the world. Telefonica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy.

Telefonica is a 100% listed company, with more than 1.7 million direct shareholders. Its share capital currently comprises 4,773,496,485 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, Paris, Frankfurt, Tokyo, New York, Lima, Buenos Aires and Sao Paulo.

About Windows Live

Windows Live, a comprehensive set of personal Internet services and software, is designed to bring together in one place all the relationships, information and interests people care about most, with enhanced safety and security features across their PC, devices and the Web. Windows Live and MSN are offered alongside each other as complementary services. Some Windows Live services entered an early beta phase on Nov. 1, 2005; these and future beta updates can be found at ideas.live.com/. Windows Live is available at http://live.com/.

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.

Source: Microsoft Corp.

CONTACT: Erika Bitzer, +1-503-443-7000, erikab@waggeneredstrom.com,

or Rapid Response Team, +1-503-443-7070, rrt@waggeneredstrom.com, of Waggener Edstrom Worldwide, for Microsoft Corp.;

or Eduardo Zaldivar of Telefonica Press Office, (34) 91 482 3631, eduardo.zaldivar@telefonica.es, prensa@telefonica.es
Web site: http://www.microsoft.com/

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