BARCELONA, Spain, February 11 /PRNewswire/ --

- Regional agreement to provide Windows Live Messenger, Hotmail and more
to Telefonica movistar customers in 12 countries.

Continuing their mutual commitment to provide customers with a convenient
way to stay in touch with people and information, Microsoft Corp and
Telefonica SA, one of the leading integrated operators in the world, today
announced that Telefonica has agreed to adopt Windows Live services for
mobile phones for all of Telefonica's Wireless Application Protocol
(WAP)-based handsets in 12 countries in Latin America, specifically those in
which Telefonica operates its cellular services under the brand Telefonica
movistar. Customers of Telefonica movistar throughout Latin America will have
access to Windows Live Hotmail, Windows Live Messenger and Windows Live
Spaces from their phone, enjoying one of the leading instant message, web
mail and communications services worldwide.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO)

Initial Windows Live Services are already available for Telefonica
cellular customers in Argentina and Chile, and for Vivo customers in Brazil,
and will soon be launched in a phased approach across the rest of the
countries. The 12 countries that benefit from this relationship are
Argentina, Chile, Colombia, Ecuador, El Salvador, Guatemala, Mexico,
Nicaragua, Panama, Peru, Uruguay and Venezuela.

"Microsoft's alliance with Telefonica will enable a much broader group of
consumers to experience the benefits that Windows Live has to offer,
providing easy access from virtually anywhere," said Matt Champagne, director
of product management of the Mobile Communications Business for Microsoft.
"Our partnership allows us to extend the value of our key services to
customers in Latin America, opening new avenues for increased productivity
and seamless connectivity."

"Our collaboration allows both Microsoft and Telefonica to expand the
depth and breadth of the services we bring to our mutual customers, driving
up mobile usage and facilitating increased connectivity to real-time
communications capabilities," said Luis Miguel Gilperez, director, Mobile
Business at Telefonica Internacional.

About Telefonica

Telefonica is one of the largest telecommunications companies 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.

The company has a significant presence in 24 countries and a customer
base that amounts to more than 218 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.

Telefonica is a 100% listed company, with more than 1.7 million direct
shareholders. Its share capital currently comprises 4,773,496,485 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 and Sao Paulo.

About Windows Live

Windows Live, a comprehensive set of personal internet services and
software, is designed to bring together in one place all the relationships,
information and interests people care about most, with enhanced safety and
security features across their PC, devices and the Web. Windows Live and MSN
are offered alongside each other as complementary services. Some Windows Live
services entered an early beta phase on Nov. 1, 2005; these and future beta
updates can be found at http://ideas.live.com. Windows Live is available at
http://www.live.com.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realise
their full potential.

About Microsoft EMEA (Europe, Middle East and Africa)

Microsoft has operated in EMEA since 1982. In the region Microsoft
employs more than 13,000 people in 60 subsidiaries, delivering products and
services in 138 countries and territories.

This material is for informational purposes only. Microsoft Corp
disclaims all warranties and conditions with regard to use of the material
for other purposes. Microsoft Corp shall not, at any time, be liable for any
special, direct, indirect or consequential damages, whether in an action of
contract, negligence or other action arising out of or in connection with the
use or performance of the material. Nothing herein should be construed as
constituting any kind of warranty.

Web site: http://www.microsoft.com