Re Agreement

Telefonica SA
26 July 2001


IPSE 2000, Telefonica Moviles' Italian operator, reaches interconnection
agreement with Telecom Italia 

  -Accord will allow Ipse 2000 to offer its clients connection with all the    
clients of the Italian fixed and mobile networks and with those of the          
principal international operators 

Ipse 2000, the Italian operator of the Telefonica Moviles Group and the holder
of one of five third-generation mobile phone licenses in Italy, has reached an
agreement for interconnection with the fixed-line network of Telecom Italia
S.p.A.

This accord, the first of its kind signed by a new-entrant UMTS operator, will
allow Ipse 2000 to offer its clients connection with all the clients of Telecom
Italia and of the other operators of fixed and mobile national networks, as well
as with the main international carriers.

The agreement, together with the roaming accord which is now being negotiated,
will allow Ipse 2000 to offer its clients products and services in the coming
months, much before the time foreseen in the operator's original plans. 

Ipse 2000, is owned 45.59% by Telefonica Moviles, 12.55% by the Finnish 
operator Sonera, 12% by Atlanet, 10% by Banca di Roma; 5% by Xera S.p.A.;
5% by Edison-Flack; and 4.8% by Goldenegg with the remaining 5% held by other
shareholders. 

Madrid, July 25, 2001