Telefonica Moviles Espana and Motorola To Set Up Joint Applications Development Centre for Wireless Applications and Services.

Business Editors

MADRID--(BUSINESS WIRE)--July 13, 2000

Telefonica Moviles Espana, the Spanish market leader in mobile telephony, and Motorola Inc. (NYSE:MOT), one of the world's largest suppliers of mobile telephones, integrated communications solutions and embedded electronic solutions, are to set up a Joint Applications Development Centre (JADC) in Madrid specifically for the joint development of wireless applications and services.

The Spanish JADC will focus on the development of innovative applications to drive the growth of the new mobile data services - General Packet Radio Service (GPRS) currently being implemented across the world, and for future third generation networks. The JADC will also develop new services for competitive differentiation on existing GSM networks, enhancing Short Message Service (SMS) and Wireless Applications Protocol (WAP) services.

The joint development centre will be oriented towards new user mobile applications, and will incorporate service and infrastructure enhancements. The JADC will help to achieve significant reductions in lead times for the development, testing, and deployment of applications and services. As this commercial relationship develops, other joint activities will include as research and development of new markets and the sale of applications.

Telefonica is currently focusing on offering new access and value-added services to its consumer and corporate customers. Its new package of wireless services, "e-mocion", combines conventional GSM data services such as SMS, e-mail and fax, with other more advanced services such as WAP, GPRS, Cell Broadcast, and other bearer services. These are integrated into the new M-ISP (wireless ISP) platform, which will encompass the provision of configuration, personalisation, location, directory, profiling, speed, IP access, authentication and payment services for a new generation of wireless communication operators.

With the formation of the JADC, Telefonica will have the capability to extend its range of services and applications with the most advanced technologies while meeting consumer expectations with rapid and cost-effective time to market.

Motorola is currently creating a number of Applications Development Centres, (ADCs), world-wide dedicated to wireless applications, including WAP, and others embedded on Java, Bluetooth, VoxML, synchronization, GPRS, speech on IP, etc. The Spanish JADC will give Telefonica the opportunity to cooperate with other ADCs, as well as utilising the expertise of Invisix(TM) Centres of Excellence, the Motorola-Cisco joint venture driving applications integration on mobile networks around the world. Invisix centres are currently in the UK, the US and Japan.

Both the ADCs and Invisix offer operators and third party developers new channels through which to present their applications to major commercial customers and to the mass consumer market, thus generating new business opportunities.

Jeff Gordon, Motorola corporate vice-president and general manager of Motorola's Network Solutions Sector in EMEA, said: "We have always had a strong partnership with Telefonica in the development of mobile networks, and we are delighted to be moving forward into the applications space with the formation of this ADC. This kind of agreement between operators and suppliers heralds a new, more effective work scenario for innovation, development and operation of future services and technologies in the `wireless internet' market."

Luis Lada, Telefonica Moviles' Chief Executive, said: "The agreement between Motorola and Telefonica Moviles Espana to establish a Joint Application Development Centre contributes to maintaining our leadership in innovation and in getting products quickly to the marketplace. At the same time, it acts as a catalyst for more dynamic use of applications running on GSM, GPRS and UMTS mobile networks whilst creating new business opportunities for companies and new services for customers".

Motorola is a global leader in providing integrated communications solutions and embedded electronics solutions. Sales in 1999 were $33.1 billion.

For more information on Motorola, visit: www.motorola.com

For more information on Cisco Systems Inc., please visit www.cisco.com

For more information on Invisix, visit: www.invisix.com

For more information on Motorola's Aspira(TM)GPRS solution, including details of the world's first commercial GPRS network, please visit: http://horizongprs.motorola.com

Motorola is a registered trademark and Invisix is a trademark of Motorola Inc. All other brands or corporate names are trademarks of their respective owners.