Re Agreement

Banco Santander Central Hispano SA 31 May 2001 Document Dated 30 May 2001 NEW PLATFORM CREATED FOR MOBILE PHONE-BASED PAYMENTS IN SPAIN * Agreement signed today between Banco Santander Central Hispano, Banco Bilbao Vizcaya Argentaria, Telefonica Moviles and Airtel paves way for a new platform for effecting payments by mobile phone in Spain. AMENA will also join * The new system will offer a secure mechanism for using credit cards, taking advantage of existing card technology * Caja Madrid, Banco Popular, Banesto, Banco Sabadell and Xfera will also form part of the agreement, contributing their respective expertise in this field * The agreement means integrating the various projects under way to date in Spain, opening the door to exporting the Spanish platform Madrid, May 30, 2001 - Banco Santander Central Hispano, Banco Bilbao Vizcaya Argentaria, Telefonica Moviles and Airtel today announced the signing of an agreement to integrate their respective development programmes in mobile phone payments. The new project will be an open system, which all financial entities, mobile phone operators and credit card companies in Spain are eligible to join. Mobile phone operator Amena has signed an agreement to join the project, and agreements in principle have also been reached with Caja Madrid, Banco Popular, Banesto, Banco Sabadell and Xfera. This de facto will create a platform for phone payments in Spain, with clear options for international expansion. The agreement places Spain in the vanguard of new business models involving financial institutions and mobile phone operators, and strengthens its leadership in new credit card technology. The new platform reflects the role that mobile phones will play in the daily lives of consumers, offering an effective mechanism for making payments. It will facilitate the transition to payments in euros, and open the possibility of offering an advanced payment system for transactions such as home deliveries, repairs etc. It will also broaden the scope of existing credit card operations and reach the younger segment. The security afforded by this new system will facilitate internet purchases, and brings a decisive thrust to mobile phone transactions, opening up enormous business opportunities by uniting the convenience of mobile phones with the sophistication of advanced payment systems. The mobile phone acts to identify the owner, and allows him to confirm each transaction with a secret code, which is different to the one used to activate the telephone. The partners in this project envisage the incorporation of major card companies such as VISA and Master Card. The agreement will take effect with the creation of two companies which will establish the platform in the Spanish market and abroad. Initial investment is approximately Ptas. 7 billion and will involve the launch of a pilot programme in the fourth quarter of this year, with a business launch by the year end.
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