Jazztel Reports Q3

a) According to the last data made public by the CMT, the ADSL Market in Spain has increased during Q3 2005 in more than 214,000 users, of which JAZZTEL has captured 37,208 users, which means a 17% of the market growth in this period.

b) September 21st , 2005 ADSL 2+ launch

This product is based on ADSL 2+ technology of which JAZZTEL is pioneer in Spain. This technology positions Spain at the same technological level than the rest of the EU countries and set us ahead, in terms of speed, of the United States.

After the launch made in Seville, coverage and launching of the product was extended to Málaga, Cádiz, Almería, Madrid and Barcelona in the coming weeks the launch will be completed in the rest of Spanish provinces.

The launch has followed the central office deployment of the ADSL2+, having reach 253 operational COs by the end of October. The deployment allows us to increase our market coverage from 14% to more than 37%, or more than 7.7 million lines.

The ADSL2+ launch has more than doubled the net daily customer addition rate1 of 648 to 1,430 net customers additions in the last four weeks2.

In order to increase the capacity and capillarity of our network to assure the coverage of the DSL central offices; JAZZTEL has increased by more than 10,000 km the reach of its backbone network. As a result, JAZZTEL has 18,329 km. of operational backbone network.

Delay in the deployment due to the nonfulfilment by Telefónica of the LLU Reference Offer (OBA): since January 26th, 2005, JAZZTEL has filed with the Comisión del Mercado de las Telecomunicaciones (CMT), the Spanish National Regulatory Authority, thirty four disputes related with the nonfulfilment by Telefónica of the deadlines established in the OBA. Out of these thirty four disputes filed, nine have been settled by the CMT in favor of JAZZTEL ruling Telefónica to pay penalizations of approximately 3.5 million Euros. JAZZTEL is waiting decisions by the CMT on the remaining disputes filed which would reach the amount of 9 million euros. These filed nonfulfillments are related to: delays in the deadlines legally established by the OBA of the External Wiring and Signal delivery through Leased Capacity and other types signal delivery requests; Internal Wiring; collocation service requests, GigaADSL services, circuit manager, etc…It is worth noting that at present, Telefónica is still nonfulfilling the conflict resolutions on which the CMT has brought up a decision.

Additionally, JAZZTEL has filled on November 11th legal actions against Telefónica at the Competition wachtdog for abuse of its dominant position and economic dependency in the broadband Internet market. Also JAZZTEL filled a lawsuit today in the ordinary jurisdiction against Telefónica for the non compliance of the competition and economic dependency regulation. In the coming days JAZZTEL will continue to file new legal actions against Telefónica.

c) Successful launching of which in it’s first week has reached an average of 25,000 visits with an average of 5 pages seen by each user.

By December there will be a new channel for Television, which will be used as a digital magazine for JAZZTEL IP television users.

d) Last October 25th 2005 JAZZPLAT, S.A., public limited company in Argentina was constituted. Its social objective is the supply of call center services and telephonic sales from Argentina. This society has been constituted by JAZZ TELECOM, S.A.U. in a 95% and by ADATEL TELECOMUNICACIONS S.A.U. in a 5%. The objective of this customer core platform is to enhance the commitment on effort to offer an exquisite customer care and strengthen new user add-ups, all in an economic and efficiently way.

e) JAZZTEL confirms that on October 11th, 2005 the Court number 60 of Madrid rejected the request of precautionary measure made by Ya.com against Jazz Telecom, S.A.U. due to its supposed contractual nonfulfilment and has condemned Ya.com to pay the costs for this process. Ya.com has announced to give notice of appeal.

Jazztel plc