MADRID, Spain -- Telefónica S.A. today announced a comprehensive package of pricing propositions that will offer its European customers major reductions in the cost of using mobile data services whilst traveling. Consumers in Spain, the UK, Germany, the Czech Republic and Ireland will benefit from cuts of more than 40% over November 2007 prices in data roaming, while the cost of sending a text message home from anywhere in the European Union falls to a maximum of €0.32 + VAT. For business travelers who wish to stay connected while abroad, a new roaming bundle provides worldwide access to data at a price equivalent to €1 per megabyte (MB). These changes form an important part of the company's continuing drive to increase the transparency and simplicity of mobile charges.

O2 businesses and Movistar in Spain will implement new data roaming tariffs aimed at consumers traveling within Europe ahead of this year's summer holiday season in July. These will include both significant reductions in the per-MB price and the introduction of time-based charging principles.

Recognizing the ever-increasing popularity of text messaging as a way of staying in touch, both prepaid and postpaid consumers will, starting from May pay no more than €0.32 + VAT to send an SMS from any EU country. It will cost nothing to receive a text.

O2 and Movistar business customers, who typically have much heavier data access and download requirements, can take advantage of a highly competitive new data bundle. For a flat monthly fee of approx €50, business travelers may use 50MB of data on any roaming partner network worldwide. At approx €1 per MB, this is particularly attractive to multi-national customers, as it allows them to benefit from a single tariff wherever they travel. The package is available now in Spain, the UK, the Czech Republic and Ireland and will be introduced in Germany in the second quarter of 2008.

Matthew Key, chairman and CEO of Telefónica O2 Europe, said: " This initiative follows similar innovation by Telefónica in voice roaming, with the introduction last year of our highly successful My Europe roaming price plans - the first to completely remove charges for receiving calls abroad.Today's announcement honors the promise we made to customers at that time that, having reduced the cost of calling whilst abroad, we would bring down the last barrier in roaming charges - data. Importantly, it also addresses the issue of transparency where, for too long, customers have been confused by a plethora of tariffs and fees. The published rate will apply across the board - regardless of the mobile network used".

Telefónica SA (NYSE: TEF)