Telefónica Móviles and Nokia sign agreement to develop future mobile phone services

Madrid, 23 July - Telefónica Móviles (NYSE: TEM), one of the world´s leading mobile phone operators and Nokia today signed an agreement in Madrid to cooperate on the development of applications for value-added services for Telefónica Móviles´ clients, in both the business and consumer segments.

In order to work together in the design, development and marketing of the value-added mobile applications, the two companies will set up a Services Creation Center, located in Madrid, which will be established as a permanent working group. This joint working group will have the latest technologies and infrastructures, in order to test the new applications.

The accord between Telefónica Móviles and Nokia consists of two phases. In the initial phase, the commercial services will be based on technologies currently available in the Telefónica Móviles network, for example, SMS, WAP and location-based services, over GSM and GPRS. During the second phase, the companies will move towards the creation of advanced services incorporating multimedia messaging, audio and video streaming, location-based services and Java, among others, based on the UMTS technology.

"Telefónica Móviles and Nokia have been working together for the supply of network equipment since 1996 and Nokia intends to lead the Mobile Internet market which will enable our customers to offer the most advanced range of services to their subscribers," said Felix Quesada Gonzalez, Managing Director of Nokia Networks Spain. "Telefónica is one of the fastest growing operators in Europe, and this places us in an ideal position to work closely with them in meeting the demands of the Mobile Internet market place."

"Telefónica Móviles is pursuing an intense strategy which will allow it to consolidate its position as a leader in new technologies related to mobile services. The development of new applications and services allows us to supply our affiliated operators with more a competitive range of products and services. This is a key factor in our revenue-generating capacity in the medium and long term," says Ignacio Aller, Executive Vice-president for Spain, the Mediterranean Basin and Global Businesses and Chief Technology Officer of Telefónica Móviles.

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.

Telefónica Móviles is one of the largest mobile operators in the world. The company ended the first half of 2001 with more than 26.5 million customers in 14 countries and a potential market of more than 434 million inhabitants. In 2000, Telefónica Móviles reported operating revenues of 7.401 billion euros, EBITDA of 2.451 billion euros and net profit of 590.6 billion euro s. Already the market leader in Spain and Latin America, the company is currently carrying out a selective expansion strategy in Europe and the Mediterranean Basin

For further information:

Nokia Networks Spain
Masha Lloyd
Director, Communication Division
Tel + 34 91 2119300

Global Communications Department, Nokia Networks
Tel. + 358 (0) 7180 38195
Email nokia.networks@nokia.com

www.nokia.com

Telefónica Móviles.
Juan José Berganza / Edward Holland
Communications Department
Tel. + 34 679 40 44 / + 34 679 42 24

www.telefonicamoviles.com