PRESS RELEASE

TELEFÓNICA POSITIONED IN THE LEADERS QUADRANT OF THE MAGIC QUADRANT FOR PAN-WESTERN EUROPEAN MOBILE SERVICE PROVIDERS 2012

Madrid, 14th January 2013 - Telefónica, a leading provider of integrated communication solutions, today announced it has been positioned by Gartner, Inc. for 6th consecutive year in the Leaders quadrant of the Magic Quadrant for Pan-Western European Mobile Service Providers*.

Jose Luis Gamo, Telefónica Global Solutions, Multinational Business Unit CEO, commented:

"Managed Mobility remains a strategically important service for Telefonica and an area where we continue to heavily invest. We understand the positive impact it has in enabling our enterprise and multinational customers globally to take advantage of increased productivity, leverage and manage the trend of consumerisation and enterprise mobility, implement joined up end to end communications, and most importantly, facilitate a business everywhere principle through mobilization of business processes and higher employee collaboration, leading to greater productivity. We will continue to deliver in this area with new innovative products and features to help our customers run their businesses more efficiently"

The report defines "leaders" as "mobile service providers that offer mature offerings, while also demonstrating the vision needed to sustain a leading position in the market as client requirements change. They invest in and focus on their offerings and the service experience they deliver in a way that can affect the market's direction. They have a proven track record in mobile voice and data services for enterprises, and they offer wide geographic coverage. They have also shown a commitment to invest in this business, which indicates that they are well placed for future success. Their products and services

are relatively low-risk, but not necessarily the best for every customer".

Telefónica, S.A. Communications Office Tel: +34 91 482 38 00

Ronda de la Comunicación, s/n email: prensa@telefonica.es

28050 Madrid www.telefonica.com/saladeprensa


*Gartner, Inc., "Magic Quadrant for Pan-Western European Mobile Service Providers," by Katja Ruud and

Leif-Olof Wallin, 9 January 2013

Mobile Service Providers evaluated in the Magic Quadrant were evaluated on their "ability to execute" and "completeness of vision," which reflect the following specific criteria:

Ability to Execute