Convergys to Support Telefonica's New Value-Added Services in Brazil, Argentina, Chile, and Peru.

CINCINNATI & MADRID, Spain -- Contract Involves Telefonica Group Wireline Operations in Brazil, Argentina, Chile, and Peru

Convergys Corporation (NYSE:CVG), a global leader in integrated billing, employee care, and customer care services, announced today that Telefonica I + D (whose subsidiary company in Brazil is Telefonica Pesquisa e Desenvolvimento, TPD), a Telefonica Group company, will install Convergys' Infinys (tm) rating and billing software to support the introduction of new, value-added services over ADSL and Wi-Fi to customers of broadband services provided by wireline operators of Telefonica Group in Brazil, Argentina, Chile, and Peru.

This Infinys software license is part of a contract Convergys signed with Telefonica, one of the world's leading telecommunications companies.

The rating capabilities of Infinys will enable Telefonica to offer its customers the ability to download content, games, and movies. Additionally, Infinys will allow Telefonica to offer pre- and post-paid services via asymmetrical digital subscriber line and Wi-Fi.

With headquarters in Spain, Telefonica is the leading operator in the world's Spanish and Portuguese-speaking markets. Telefonica provides fixed and mobile telephony services to its more than 100 million customers worldwide and is using broadband as the key mode of delivery.

"In researching solutions to meet Telefonica's billing requirements, Infinys was the clear choice for us because it can rate any event, usage, content, and value-added service," said Jose Luis Garcia Gomez - Director de Servicios Datos y Multimedia. "Additionally, as we continue to offer broadband, wireline, and wireless services, Infinys has the convergent billing capabilities and scalability to meet our growth and enable us to quickly introduce new rating plans to meet the demands of the market."

"Convergys is pleased to be expanding our relationship with Telefonica, one of the world's preeminent telecommunications providers," said Raul Rodriguez, President of Convergys' Information Management Group for Latin America. "With Infinys, Telefonica has the capability to offer complete new sets of services under any pre- and post-paid rating plan the company chooses."

"In selecting Convergys, Telefonica has chosen a company that offers best-in-class products coupled with a broad range of high-value professional services," said Steve Robertson, President of Convergys Information Management Group, International. "This strong combination of assets will provide significant benefit to Telefonica, helping expedite the rollout of the latest telecommunications offerings to its customers."

Only Infinys software drives true convergence while enabling operators to evolve their BSS environments with minimal risk. Built on a modular architecture, Infinys software provides unsurpassed flexibility, investment protection, and support. With Infinys, Convergys clients - ranging from mobile to wireline to cable and satellite service providers - have the capability for rapid market innovation via their bundling of convergent voice, video, and data content for their residential and business customers.

About Telefonica

Telefonica Group is one of the world's leading telecommunications companies. Telefonica is the leading operator in the Spanish and Portuguese speaking markets and the sixth biggest operator 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 of these.

The company has a significant presence in 15 countries, but operations of various sizes in approximately 40. It boasts a strong presence in Latin America with operations in eight countries following a clear growth strategy. The Telefonica Group has more than 100 million customers worldwide.

Telefonica SA (Telefonica Group's holding company) with headquarters in Madrid, Spain, is a 100 percent private company, with almost 1.7 million direct shareholders. Its share capital currently comprises 4,955,891,361 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, Sao Paulo, and the SEAQ International Exchange in London. Its Telefonica Moviles (which has 50 percent equity interest in VIVO in Brazil), TPI (Telefonica Publicidad e Informacion), and Terra subsidiaries are also listed.

About Telefonica I+D 

Telefonica I+D is the research and development company in Telefonica Group and is the reference integrator for the deployment of critical platforms in the different business lines in Telefonica Group. In Brazil, the subsidiary company is called Telefonica Pesquisa e Desenvolvimento (TPD). With a highly qualified mass of IT professionals (1,500) and premises in Spain (Madrid, Barcelona, Valladolid), Brazil (Sao Paulo), and Mexico, Telefonica I+D is assisting Telefonica's growth in all the different regional markets as well as with the different technologies (fixed, mobile, data...). Telefonica I+D has been chosen by the Telefonica Group to deploy this new platform for value added services over ADSL based on his expertise in similar platforms for broadband operators and the management of strategic projects.

About Convergys

Convergys Corporation (NYSE:CVG), a member of the S&P 500 and a Fortune Most Admired Company, is a global leader in integrated billing, employee care, and customer care services provided through outsourcing or licensing. We serve top companies in telecommunications, Internet, cable and broadband services, technology, financial services, and other industries in nearly 60 countries. We also provide integrated, outsourced, human resource services to leading companies across a broad range of industries.

We bring together world-class resources, software, and expertise to help create valuable relationships between our clients and their customers and their employees. This commitment is validated by the more than 1.5 million individual bills our software produces each day to support more than 100 million subscribers, and by the more than 1.7 million separate customer and employee contacts we manage each day, both live and via electronic interaction.

Convergys(R) employs more than 63,000 people in 62 customer contact centers and in our data centers and other offices in the United States, Canada, Latin America, Europe, the Middle East, and Asia. Convergys is on the net at www.convergys.com and has world headquarters in Cincinnati.

(Infinys is a trademark and Convergys and the Convergys logo are registered trademarks of Convergys Corporation.)