Barcelona, 17 February 2010 —Telefónica and ZTE today announced that a full range of movistar branded handsets will be launched in 12 Latin American countries during 2010, starting in Q2. Telefónica and ZTE signed an agreement for the development of a complete range of mobile devices. ZTE will manufacture  movistar branded handsets exclusively available for Telefónica in Latin America.

“Consumers in Latin America are becoming increasingly demanding and have specific requirements in terms of handset design and desired features. By customising a complete range of handsets, ZTE will enable Telefónica to meet the requirements of its Latin American customers and further build the movistar brand,” said Luis Miguel Gilpérez, Director of Mobile Business, Telefonica Internacional.

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The handsets have been co-designed by ZTE and Telefónica and mark the first strategic cooperation in the handsets space between the two companies.

Telefónica is one of the largest telecommunications operators in Latin America. The customised ZTE handsets will be available throughout the year in the following markets: Mexico, Colombia, Venezuela, Peru, Ecuador, Argentina, Uruguay, Chile, Guatemala, El Salvador, Panama and Nicaragua.

ZTE is the world's 6th largest mobile phone manufacturer and the world's second largest supplier of data cards, according to shipment volumes. By the end of 2009, ZTE has cooperated with eight of the world's top 10 operators in the handsets space. With this partnership, ZTE will expand its business in the Latin America market.

Telefonica boilerplate:
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation. 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 25 countries and a customer base that amounts to 268 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.

Telefónica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4.563.996.485 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, Tokyo, New York, Lima, Buenos Aires and São Paulo.