Sunnyvale, California - (The Hosting News) - October 15, 2007 - Global Internet company, Yahoo! Inc., has partnered with Telefonica, in an agreement to provide a framework for making Yahoo!'s mobile oneSearch, the main search service on Telefonica's portals in 15 countries across Europe and Latin America.

Under the terms of the agreement, the search solution has the potential to reach more than 100 million consumers worldwide. Telefonica's local subsidiaries agree to offer Yahoo! oneSearch as the search engine partner on their mobile portals in Ireland, Latin America and the UK -- Telefonica will also integrate Flickr and Yahoo! Mail into its portfolio of mobile Internet services.

Through the launch of Yahoo! oneSearch, Telefonica will make it easier for its customers to find relevant results on their mobile devices. Yahoo! oneSearch is specifically designed for mobile devices, delivering results directly in the first screen and thereby removing the need for consumers to navigate through a sea of links to PC Web sites to find the information they want. Yahoo! oneSearch gives consumers access to news, financial information, weather conditions, Flickr photos, web images, as well as web and mobile web sites.

Together, Telefonica and Yahoo! are working to enhance the search experience for consumers on mobile phones, while providing both companies with new revenue streams through mobile advertising.

Julio Linares, Telefonica's General Manager for Coordination Business Development and Synergies commented, ''Partners are essential to our mobile strategy and these key relationships, like the one we are announcing today with Yahoo!, will continue to evolve and deliver state of the art Internet experiences to our customers at home or on the go.''

Marco Boerries, Executive Vice President of Yahoo!'s Connected Life Division added, ''Yahoo!'s new partnership with Telefonica furthers our leadership in mobile and demonstrates our commitment to working with partners to enhance the Internet experience for customers on their mobile phone. Together we can grow usage of mobile Internet services and create new revenue streams through mobile advertising.''

Telefonica customers will be in a position to have direct access to Flickr, an online photo sharing communities. The inclusion of Flickr in Telefonica's mobile services will allow customers to easily view and share their photos, view their friends' pictures, view and create comments on photos and browse or search more than one billion images posted by the Flickr service, all from the mobile phones.

Additionally, Yahoo! Mail will be seamlessly integrated into Telefonica's Mail Express service, providing Yahoo! Mail users with the ability to receive their Yahoo! Mail messages directly on their mobile phone via MMS messaging, enabling customers on the Telefonica network in Spain and Latin America to stay connected to their community even when they are away from their PC.

Telefonica 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 24 countries and a customer base that amounts more than 212 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.

Yahoo! is a provider of mobile Internet services, including Yahoo! oneSearch and Yahoo! Go for Mobile 2.0, to consumers worldwide. Through relationships with more than 80 mobile operators and device manufacturers in 40 countries.

To learn more about Telefonica, please visit: www.telefonica.es.

For more information on Yahoo! Mobile please visit mobile.yahoo.com.