e-commerce Portal

Telefonica SA
19 April 2000



TELEF0NICA AND SOL MELIA LEAD THE CREATION
OF AN E-COMMERCE PORTAL AMONG COMPANIES
OF THE HOTEL SECTOR AND BARCELO, IBEROSTAR
AND BBVA

Telefonica, along with BBVA, launches its plan to create e-portals in one of
the industries that makes the greatest contributions to the Spanish economy.

Sol Melia, collaboration with Barcelo and Iberostar, leads the process of
innovating the Spanish hotel industry, inviting hotel chains in Spain and Latin
America to join the project.

Telefonica has reached an agreement with Sol Melia to create an Internet portal,
along with Barcelo and Iberostar. The portal aims to provide, e-commerce among
the hotels and suppliers of the markets of the Spanish hotel chains, these being
Spain, the Mediterranean area and Latin America. 

Telefonica has recognised the importance of the hotel industry in the
Mediterranean area and Latin America and has therefore included this portal in
its strategy to create Internet B2B portals in several vertical Spanish and
Latin American industries. Over the next few months, Telefonica intends to
launch between 10 and 15 vertical platforms in association with the leading
industrial.

Telefonica, Sol Melia, Barcelo, Iberostar and BBVA believe that an Internet
portal will provide buyers and sellers with a greater degree of value added in
terms of cost savings, increased efficiency and a more extensive range of
commercial alternatives.  The five founding partners expect to announce shortly
the incorporation of companies of particular importance within the natural
markets, and particularly, the Latin American hotel chains of greatest
significance who are being urged to join the project

It is foreseen that the portal will start-up within the next few months and to
be on offer throughout the whole of Spain before the end of the year, and to
then branch out to include Latin America and the Mediterranean area. The
investment involved stands at around euros 30 million over the first 24 months
of operations.

Telefonica will be responsible for providing the technological platform,
possibly through its strategic alliance with Ariba. Other technological
platforms may be used if the services requested by the sector deem this
necessary.

Telefonica, along with BBVA, reflects its aim to develop and pioneer e-commerce
among companies within the Spanish and Portuguese speaking market. Telefonica's
operative strategy in Internet B2B is based on the strengthening its partners'
experience in the launching of business lines aimed at this market, complemented
by a powerful programme for the investment in and implantation of new business
opportunities with high potential for enhancing shareholder value.

Sol Melia is the leading hotel company throughout Spain, Latin America and the
Caribbean, at the same time as being ranked second among the European
companies Barcelo Empresas is one of the leading groups within the Spanish
tourism sector and it is present in 25 countries and the Iberostar Group has had
more than 70 years of experience and was the first group in Spain to integrate
all types of activities related with tourism.