"Cooperation with EDB provides benefits to customers through both parties. For a favorably-priced tariff, data appears concurrently in two internet databases. And, on the other hand, both parties will recommend registered companies to internet users and callers. Last year, O2 information services operators alone served 13.5 million callers," says Tereza Hubičková, Manager for Sales of Information and Advertising services, Telefónica O2.

"EDB and the 1188 line will recommend registered companies; this will certainly be instrumental to finding new potential customers and establishing further development of their businesses," adds Pavel Jíša, Product Director, EDB.

Small enterprises and companies can register their data into the 1188 and EDB catalogues for a special tariff in two levels. Every type of registration differs according to the content of services being offered and, at the same time, according to prices. For CZK 4,200, the Start Duo tariff offers the opportunity to present basic company data, such as name, seat, company identification number (IČ), taxation identification number (DIČ), subject of business, contact information, presentation of the company on a map, the company logo, etc. At a higher level, for CZK 9,900, the Prima Duo tariff provides the opportunity to add a photo and a larger offer of keywords for searching to the basic data.

To register in both catalogues, simply fill in the corresponding form at www.edb.cz, or call 14000.

About 1188

The 1188 brand is known for its information service at the phone number 1188. In addition to this, it offers several other services on the internet, such as 1188 Maps, 1188 Telephone Directory, 1188 Internet Search Engine, and the 1188 Company Catalogue. These contain tens of thousands of authentic entries of domestic companies, from which the user can find out company names, addresses, phone numbers, email addresses, web pages, location on maps, business hours, etc. The 1188 Company Catalogue also offers added value by combining the benefits of the internet and phone lines - when making recommendations to callers, operators at the 1188 line give preference to companies registered in this internet catalogue. The 1188 Company Catalogue and all other services are available at www.1188.cz.

About EDB

The European Databank (EDB) is one of the top providers of information and assistance services. Its database contains 180 thousand presentations of domestic and foreign companies. Users can search for them either directly on the internet or by calling 14 000 at the same rate as a local call. EDB has been operating on the domestic market since 1991. More information about EDB is available at www.edb.cz.

John McGuigan's curriculum vitae, including a photo, is in the appendix to this press release.

"In our series of short-term offers, this one is truly exceptional. For the first time, we are giving customers the opportunity to get high-speed O2 Internet not only for a favorable price, but also with no commitment. With this we are trying to accommodate all customers who do not want to be tied down for 24 months and are hesitant to get an internet connection because they have concerns about the future. In addition, we guarantee customers a discounted price for one year," says Petr Matějovský, Marketing Director, Telefónica O2.

All customers can now enjoy surfing at home at speeds of up to 8 Mb/s for a special price of CZK 500 per month for one year. They simply have to order O2 Internet between November 1 and November 15, 2009. At the same time, they are not bound to any obligations. The price for using the service is final; therefore, the customer does not have to worry about any additional fees. The customer pays only one crown for service activation, they can then get a WiFi modem for wireless coverage of their household for the favorable price of CZK 990.

Customers can also get O2 Mobile Internet with no contractual commitment for the discounted price of CZK 500 per month for two years. With a USB modem the size of a common flash drive, they can be online almost immediately. In the event that they order the service without signing a contract, they can get it for CZK 1,895. When they sign a 24-month contract they can get this modem for just CZK 1. In combination with O2 Internet, the monthly fee for O2 Mobile Internet drops to CZK 150.

"The Christmas offer is the ideal opportunity to save on monthly fees for mobile services, make unlimited calls to friends and family, and get a favorably priced phone not only for yourself, but also for someone close to you. Prepaid customers can once again enjoy a holiday credit bonus and long-term discounts on services," says Jan Karas, Segment Marketing Director, Telefónica O2.

Offer for postpaid customers

Samsung for a crown

A Samsung C3050 for CZK 1 has been prepared for all mobile services customers who buy a Samsung S3650 Corby phone together with any O2 NEON tariff or the O2 [:kůl:] tariff, or switch from prepaid to postpaid services, between November 2 and December 31, 2009. The Samsung S3650 Corby is just CZK 3,895, but its features are comparable with those of high-end phones. The offer is valid with the signing of a 24-month contract, or the prolongation of an existing contract.

With its original design and touch screen display, the Samsung S3650 Corby has been designed primarily for young users. It emulates the current trends in mobile communications, enabling users to enjoy Facebook and Twitter mobile applications, watch videos on YouTube, listen to MP3s, and tune into the radio. It comes with three interchangeable color cases in one package, in the variants black + white + white with a pattern or black + yellow + yellow with a pattern, which women and girls will especially appreciate.

The Samsung C3050 is advantageous primarily for less technically inclined users who just want a good-looking phone with simple controls. It is ideal for younger and older generations. The standard price of the phone is CZK 2,195. Images of both phones are in the appendix to this press release.

30% on monthly fee

All customers who switch to O2 with their number between November 16 and December 31, 2009 get a 30% discount off the regular monthly fee for any O2 NEON tariff or the O2 [:kůl:] tariff. No time limit applies to the discount so the customer can use the discount throughout a full two years. In the case of the top tariff, O2 NEON XXL, the customer can make unlimited calls to all mobile numbers and fixed lines for CZK 3,900 per month; with the 30% discount, they pay only CZK 2,730 per month. With monthly savings of CZK 1,170, by the end of their 2-year contract they will have saved a total of CZK 28,080.

Offer for prepaid customers

3 x 50% bonus for top-up credit

Everybody who buys a prepaid O2 karta with the O2 NA!PIŠTE or O2 NA!HLAS tariff between November 4 and December 31, 2009, gets a special bonus in the form of 50% additional credit once per month for a period of three consecutive calendar months. In order to get this bonus, they simply need to recharge their credit with at least CZK 300 in one recharge; the first recharge in this amount must take place by December 31, 2009. The maximum amount of the bonus is CZK 3,000; that is, CZK 1,000 per month. The bonus cannot be used for content services, audiotext services, and calls to premium-rate phone numbers. At the same time, the Reward for Top-Up program, in which every customer receives a guaranteed reward with every credit recharge (top-up), continues.

Additional services for half price

All customers get a gift in the form of a 50% discount on additional services O2 Internet on Your Mobile, O2 Pokec na jedno (O2 One-to-One Chat), and O2 Pokec nonstop (O2 Nonstop Chat) with the activation of given services from November 4 to December 31, 2009. The discount is valid for a total of twelve weeks. Therefore, the customer gets O2 Internet on Your Mobile for a weekly fee of CZK 20 instead of CZK 40. The customer can make unlimited calls to one selected number - O2 Pokec na jedno - for just CZK 9.50 per week for a fixed-line number, or CZK 24.50 per week for an O2 mobile number. Then the customer pays merely CZK 15 for the first three minutes and CZK 0.50 for every following minute for calls to O2 mobile numbers and to fixed lines with the O2 Pokec nonstop service.

"Thanks to the new website we are now able to offer advertisers all information about available forms of mobile advertising with O2, including interactive examples of specific cases, in one place," says Tereza Hubičková, Manager for the Sale of Mobile Advertisements, Telefónica O2, adding, "Using the media spaces that mobile marketing offers, it is possible to address customers nearly everywhere at any time. Advertisers can aim their advertising distribution very accurately and measure the effectiveness of their entire campaign. Imaginative and focused distribution is then not perceived as an annoyance, but rather the information precisely reaches those who are interested in it."

Banners on the pages of the O2 mobile portal

The O2 mobile portal is accessible to all customers for free. Over 500,000 people visit it per month; these people view more than 7,000,000 pages. Mobile internet banners can redirect customers to advertisers' pages, offer fun content downloads, order forms, and SMS delivery with more information, and even connect customers directly to salespeople. The average success rate of these banner campaigns is 5 %, which is 10x more than with classic internet campaigns.

Mass SMS and MMS

The mass distribution of SMS and MMS messages combines the functionality of the internet in the form of a mobile presentation and classic direct mail parcels. The benefit of this advertising product is not only the price for reach, but also the wide variety of ways of targeting, distribution in specific time windows, and the opportunity to distribute multimedia content.

Platí to Kvído (Kvído Pays)

This non-traditional form of advertising offers all O2 customers free calls to O2 mobile and fixed-line numbers. They simply dial 829 829 829 and listen to a short spot from the advertiser. The main benefit to the advertiser is primarily high effectiveness, due to the opportunity for precise targeting and immediate customer interaction. Another benefit is the possibility of immediate callback - customers can connect easily with the advertiser or have the advertiser send them an SMS advertisement. More than one hundred and fifty thousand people make over two million calls every month using the Platí to Kvído service.

"A constantly growing number of consumers are accepting telesales. Up to a quarter of our sales are carried out through active outgoing calls regarding, for instance, offers selling internet connections or tariffs," says Aleš Jelínek, Sales Director, Telefónica O2, adding, "With the growing share of such sales, the importance of setting clear rules for this prospective sales channel, ensuring their compliance, and eventually extending them to the entire market is increasing. I'm glad that two major players have agreed on a common approach and are introducing a Codex that will regulate this field."

The new code of ethics establishes clear rules for the sale of products over the phone, defines the ethics and professional conduct of sales representatives in relation to consumers. It also defines the method of conducting a sales call, specifically states the obligation of the sales representative to always introduce themselves, state the name of their company, the name of the company whose offer they are presenting, and the purpose of the call, and give the consumer the opportunity to stop the conversation at any time. The Codex also states that the consumer can submit a complaint regarding the sales representative's approach, and for greater consumer protection the code of ethics forbids calling from a hidden number.

"We regard the acceptance of the code of ethics as an absolutely essential step towards the ensuing advocacy of ethical rules in communication with customers. Its introduction is not only increasing the level of communication, but also the quality of services being offered and customer awareness,"< /em>says Miroslav Rakowski, Director for Customer Care and Sales, T-Mobile.

The signatories of the Codex are putting the new code of ethics into effect in their internal call centers, then gradually in all external partner call centers that run sales campaigns for them.

According to an internal O2 survey, up to 56% of mobile operator customers have been offered products and services over the phone. It is in the interest of consumers and the companies affected to maintain the quality of sales in this sales channel and improve monitoring mechanisms.

The inspiration for this Codex came from abroad, primarily from Great Britain, where it has already been implemented and is respected throughout the entire telecommunications market.

The full version of the document is available to download at http://www.cz.o2.com/osobni/en/103945-nas_odpovedny_pristup/ or http://www.prosvetkolemnas.cz/ferove-podnikani/index.html.

In 2001, Telefónica O2 became the first operator on the Czech market to implement the collection of used phones in its brand stores. In cooperation with REMA System, it is ensuring the fulfillment of legal obligations and the ecological liquidation of devices. Since 2008, together with the O2 Foundation, the operator has increased its support of the Safety Line with contributions from recycled phones. The success of the campaign can be seen in the 230% growth in phone drop offs in 2008 in comparison with the preceding period.

"The Let Your Old Mobile Help campaign should not only help increase awareness about the possibility of recycling one's phone, but it also supports a good cause. With 130% theoretical penetration of mobile phones among the Czech population, recycling old devices has become a real problem. Unfortunately, people often don't know how to go about recycling mobile phones properly. Therefore, we have decided to make our campaign more visible by placing the boxes in our shops and, in doing so, increase public knowledge about the options of ecological liquidation and, at the same time, support the Safety Line financially," says Jiří Šuchman, Director for Corporate Affairs, Telefónica O2.

Mobile phone recycling is generally not very widespread in the Czech Republic and valuable materials such as expensive metals used in the production of mobile phones are discarded without any further use. The campaign is being connected with support for the Safety Line in order to motivate the general public to act ecologically and contribute to a good cause.

The Safety Line at 116 111 helps children and adolescents resolve difficult situations in life. It primarily serves those who don't know what to do about their problems, feel threatened, lonely, betrayed, confused, and, for a variety of reasons, don't want to, or can't, trust anyone they know.

Thirty percent of children in crisis call the Safety Line. The Line's specialists resolve around 350 calls every day. The Safety Line guarantees anonymity, operates on a nonstop basis, and, thanks to the O2 Foundation, its general partner, is free. Contributions from the campaign have gone towards increasing the capacity of the Line so that even more children who suddenly find themselves in difficult situations can call it.

Telefónica strives to contribute to environmental protection and social responsibility on a long-term approach. The tasks and challenges that Telefónica has set for itself for 2009 include, for instance, the implementation of a global environmental management system in more than half of the company's locations, increasing its customer satisfaction index, and ensuring training in Ethical Business Principles for 80% of its employees. With this approach the group has become a prominent global subject in the field of sustainable development according to the prestigious internationalDow Jones Sustainability index. This year the group's total score improved from 81.4 points to 86 points, which is 28% above the sector average and 5.6 points more than in 2008. In accordance with this evaluation, Telefónica is performing above-average in all three areas of CSR: 93 points in economics (31% above average), 73 points in environment (19% above average), and 86 points in social (29% above average).

"Dow Jones Sustainability is an index in which only the most mature global companies are allowed to participate and which measures how they uphold the principles of sustainable development. Being included in this index among the top companies is a proof that our company has adopted the right approach in respect to the sustainable development strategy,"< /em> says Luis Abril, General Secretary for Technical Affairs of the Director of Telefónica, and he adds, "We have been a part of this index for six years now. With its help we are able to identify areas in which we can make further improvements. The strategy has three main pillars - sustainability, innovation, and change. Our goal in respect to these pillars is to accomplish all the steps established in the strategy."

Just like the global group, the Czech branch of O2 distributes interactive brochures informing about the key CSR projects and events carried out last year. Last year the Donate Blood with O2 recorded a huge success, in which the company endeavored to improve non-contributory donations in the Czech Republic. Over 500 employees participated in the project. The company also demonstrates a considerable support of Fair Trade products and products made in sheltered workshops. In 2008 proceed from these products amounted to just under three million crowns.

More information at www.cz.o2.com/responsibility

The entire solution is based on the use of SIM cards that contain password protected E-service applications. Globally, the O2 Enterprise Security platform is an absolutely unique project. Until now, Telefónica O2 has been using it solely for internal needs and is now offering this service to third parties.

"The field of information and telecommunications technologies has evolved dynamically over the last few years. As the number of possible uses increases, a continuously growing emphasis is being placed on security. Our company has developed a solution that enables single-use customer identity verification through their SIM cards and BPIN codes," says Michal Táborský, Director for Product Development, Telefónica O2, adding, "The potential for usage of this function is massive. For instance, banks can use the service for transaction authorization, service providers can use it for client identification, or it can be used for secure access to sensitive data or the implementation of a micropayment system. It offers corporate clientele a means of logging into their respective company VPNs."

The O2 Enterprise Security solution is simple, flexible, and safe. The user simply needs to know their BPIN (a password distributed for GSM banking and this new service), which the customer gets together with the PIN for their SIM card. The user can change this code themselves whenever they want. The user access the O2 Enterprise Security functionality through the "O2 SIM" icon in the menu of their mobile phone. After requesting BPIN, they enter a secure zone in which there is a list of activated services.

This solution can be used in a wide range of ways. The service enables the user to generate and show a unique single-use code for internet banking on their phone's display - to log into a portal and to authorize electronic transactions. The SIM card itself generates the codes and the user is thus not dependent on GSM signal coverage. For a service provider, there is the benefit of cost savings through the replacement of verification SMS messages. Another possibility is the implementation of micropayments by mobile phone, or identification when calling a call center from secure zones. The operator thus does not have to further verify a user's identity - the call is authorized in the CRM system. Telefónica is the first operator in the world to offer such a service on its SIM cards.

The method of single-use customer identification and the services that can be accessed with this function are entirely up to the customer requesting the service

The application also features a PIN manager, which is available to all customers free of charge. The PIN manager offers secure storage of sensitive information, such as PIN codes for payment cards, static passwords, account numbers, and much more.

Up to 20 independent providers of various services can be activated on one SIM card. "In the near future, it is likely that a person will have one 'digital key' in their hand, capable of opening up a wide variety of virtual gateways. Managing internet banking, remote access to company networks, secure communication with banks, telecommunications operators or other service providers, secure electronic betting, and more will not only simplify the life of the end users, but will create considerable savings for business customers," says Vladimír Kajš, SIM Card Product Manager.

All SIM cards that O2 has distributed since 2008 have the secure zone function. If a customer does not have it, they can exchange their current card for the new version at any brand store. Customers of other operators can also use the solution by using O2 SIM cards in USB card readers plugged into their computers.

"With the O2 SIM to SIM service we are offering customers the opportunity to communicate with friends and family without interruption, at any time of the day, any day of the week. Every member of the group pays the same monthly fee regardless of the number of members in their group. This means that the more people there are in the group, the more advantageous the service becomes for each of them. They each pay the fee for themselves, which is especially fair for calling among friends," says Jan Karas, Segment Marketing Director, Telefónica O2.

O2 SIM to SIM offers advantageous mutual calling at any time, with no time limits. In connection with the O2 NEON tariffs, the service satisfies the telecommunications needs of every mobile customer. The group founder, who adds other members, is a postpaid O2 customer. Both postpaid and prepaid customers can be group members. The O2 SIM to SIM service can be used with most existing and older O2 mobile tariffs, and every customer can be a founder or member of just one group.

The service is easily activated via SMS and members can be added to or removed from a group in the same manner. Every group member is informed of changes to the group through an SMS message. Service activation, deactivation, and member removal are all free.

The monthly fee for using the service is CZK 200. In the event that group members are on the same invoice as the group founder, they pay only half the monthly fee, that is, CZK 100.

At the same time, if the group founder is using any O2 Internet and/or O2 TV service, they can use the service together with one member on the same invoice completely free of charge. Postpaid customers are charged the fee every month; customers using the prepaid O2 karta are informed of the related credit deduction once a week.

Promo offer

With the activation of O2 SIM to SIM by December 31, 2009, every customer gets a 50% discount off the monthly fee for the first three months of service usage. During this period they thus pay only CZK 100 per month.

O2 SIM to SIM Start

The service can also be used in a Start variant, which offers mutual calling within a group of up to seven O2 mobile numbers for the discounted rate of CZK 2.50 per minute for a monthly fee of CZK 50. This fee is the same in all cases and each group member pays for themselves.

"The application of modern technologies is absolutely vital to the health care industry," says David Šita, Vice-President for State Administration, Telefónica O2, when commenting on the eHealth strategy, adding, "It is a segment in which the participants consist of every resident of a given country and that is essential to the operation of entire economies. At the same time, expenditures on health care range in the tens of billions. In this sphere, however, there is growing pressure to achieve greater efficiency and lower costs, which is the main argument for more extensive use of modern information technologies."

In Spain and in Latin American markets, the introduction of the first wave of these products, which will also appear on our market soon, is underway. They consist of, for instance, the "MiFamilia" service, in which the company installs its own operating system, featuring simple controls for seniors and people with specific needs and functions for assistance and emergency services, on phones. The relatives of the owner of such a phone can use the internet to adjust the settings of the device and, if necessary, determine its location.

Another service is the "Rehabitic" solution, which enables patients to exercise and do their rehabilitation using a special device and a mobile connection. The system guides the patient as they are exercising, sends the results to a doctor and, if required, the patient can then use the device to consult with their doctor. A separate product for doctors and specialists is the "Colabora"system, which enables users to do consultations and browse pictures and X-rays and laboratory results, connect to internal databases, and much more online. The Czech branch of Telefónica O2 expects that the three aforementioned services will appear on our market within several months.

"Research and development in eHealth is a very expensive concern that requires an ample amount of experience and specialized devices. Our big advantage is our background of working with strong multi-national companies and having the opportunity to contribute to their successes. For this reason our customers in health care will be able to acquire some of the best technology in the world," states Filip Linhart, eHealth Project Manager, Telefónica O2.

While developing products for the health care industry, Telefónica is focusing on three main areas - ICT, TeleMedicine, and TeleCare. The first area ( ICT) consists of services and solutions for the operators of health facilities and institutions. It concerns, for instance, hospital information systems, the supply of mobile and data telephony, devices for administration and storage of health care documentation, and the comprehensive supply of computer technology and IT infrastructures. This can be provided in the form of a service, which in practice means that the customer does not have to purchase computers and network devices; rather, they can simply rent what they need for a monthly fee.

The field of TeleMedicine consists of all solutions in which modern technologies influence a patient and their treatment directly. It concerns, for instance, remote medical consultation services and examinations by means of video calls, following vital functions and monitoring them online, remote rehabilitation under the supervision of health care personnel, ordering examinations, and reminders to take medication. The last area is TeleCare, which concerns products from the fields of assisted and social care. These include phones that enable one to monitor a patient's location (e.g. for persons suffering from Alzheimer's Disease), assistance for the blind and deaf, mobiles with emergency buttons for seniors, etc.

At this time, ICT products prevail in terms of volume of provided services, but the operator expects that the importance of remote assistance and health care services will continue to grow. This is related primarily to the insufficiency of qualified health care personnel that can, in some cases, be replaced by modern technology. Other important factors include the aging population, the patient's increased right to decide on their treatment, the preference of home remedies over hospital stays, and the rapid development of new methods and techniques for treating patients. Another significant aspect is the economic side, since properly implemented information and telecommunications technologies can cut costs for health insurance, hospitals, and the patients themselves.

The Czech branch of O2 is currently offering eHealth products. They include Emporia mobile phones, which are designed for seniors, and special end-user devices for the deaf, people with impaired vision, the blind, the physically disabled, and people with limited mobility. The operator also provides ZTP cardholders considerable discounts on calling, and it assists the operation of the Senior Inspect emergency line. Its position in the field of supplying ICT services is also very strong; Telefónica O2 provides these services for the State Institute for Drug Control, the Ministry of Health, VZP, Metal Alliance Health Insurance, Occupational Health Insurance, the General Faculty Hospital in Prague, and Health Insurance of the Ministry of the Interior.

"The "Dobij a vyhraj" competition that ended in July, has been received with much enthusiasm by our prepaid customers. In total more than 600 000 customers participated. We want to continuously reward our prepaid customers for being loyalto O2, and we now launch this attractive program Odmena za Dobiti (Rewards for Top Up). O2 will reward absolutely everyprepaid customer,every timethey top up their credit. All a customer has to do is top up, go to www.odmenazadobiti.cz, enter the given code and get a 'guaranteed' reward. The more often customers top up their credit, the more rewards they will get" says Adrian Garrett, Marketing Director for Prepaid services, Telefónica O2.

Competition rules

All prepaid customers who top up their credit with at least CZK 200 will be automatically entitled to a reward. Top up's more than 400 CZK get more valuable rewards. After each top-up customers will receive an SMS containing a code to be entered at a special website www.odmenazadobiti.cz. Once they enter their code and pick a duck they will immediately find out about their reward. On the same website there will be 100 winning times published every day and for each of the times there will be a specific physical reward. The customer who tops up his or her credit at the winning time, or in a moment after that is closest to it, will be rewarded the described prize. Every day one hundred customers will have chance to get one of the physical rewards - a flat screen TV, laptop, mobile telephone, digital camera, DVD player, various goods vouchers and much more. All customers who do no get physical rewards will automatically get other free rewards containing local calls, international call, SMS, MMS or mobile Internet.

Main Reward

All customers who have topped up their credit and participated in this program in a given month may compete for their dream holiday worth CZK 100 000. Every time they enter the code they may also answer a competition question. Customers who top up CZK 400 and more will be given one more chance to enter a correct answer. There will always be one main prize per month. To be able to participate in the competition, customers must register.

Advertising campaign

Rubber ducks are the main mascot of the advertising campaign. The ducks will appear not only in our ATL and BTL campaign, but people will also meet the ducks "live" in 15 Czech cities. Everyone who finds or gets this duck will find a rewarding code on it, which he can use with any prepaid O₂karta.

"Providing technical security during the visits of eminent personalities is a matter of prestige for any company," says David Šita, Vice-President for State Administration, Telefónica O2, adding, "Every such event is followed carefully by specialists and laypersons, so for the organizers it is a great opportunity to prove their abilities."

During the Pope's stay, the capacity of mobile networks in the towns he is visiting will be temporarily increased, a state-of-the-art journalist center has been built, and, in addition to this, O2 transmission vehicles will be available, ensuring television and radio broadcasts from publicly accessible places. Strengthening of the signal primarily concerns Brno and StaráBoleslav, where the Pope will give mass and where great interest among visitors is expected. An international press center will be set up in the Hilton Hotel in Prague; this center will be operational for the duration of the Pope's visit and Telefónica is equipping it with nearly sixty fixed lines and more than ten broadband data connections. More fixed and data lines for media usage will also be installed in both Brno and StaráBoleslav.

Completely independent of this, five O2 transmission vehicles will be operational. The operator will use them to transmit TV and radio signals from places where footage is being shot. Transmission distribution is being carried out for Czech Television and Český rozhlas. Television broadcasts will consist of the first HD-quality transmission that Telefónica has set up terrestrially.

“The unlimited O2 mobile tariffs are enjoying massive popularity; today more than 600,000 people use them. Results from our surveys indicate that our customers would appreciate a tariff that covers expenses of around CZK 1,000. We believe that by expanding our tariff portfolio we are enabling customers a better means of choosing services that suit their needs and capacities precisely,” says Jan Karas, Director of Segment Marketing, Telefónica O2.

O2 NEON L+ offers free calling to any O2 number on weekends and during off-peak hours together with 300 free minutes for calling at any time, to any network.

For O2 NEON XL, the number of free minutes has been increased from 400 to 600. In addition to this, the per-minute calling rate has been reduced from CZK 3.90 to CZK 2.90. This change applies to new as well as current customers.

Overview of news regarding O2 NEON

All prices include VAT.
*off-peak = 7:00pm to 7:00am

O2 NEON tariffs are set up with the calling and texting needs of a wide spectrum of customers in mind. They are being offered for as little as CZK 110 with VAT per month. The top tariff enables the customer to make unlimited calls to all mobile and fixed-line numbers in the Czech Republic for one monthly fee. The benefits provided with each tariff are a standard component and no surcharges apply to them. Customers do not need to worry about losing the benefits or paying something more for them after a set period of time. In addition to the tariff benefits, each tariff also includes free units, which, depending on the tariff, can be used for calling or texting to any network, at any time.

· Enhanced service portfolio including Service Management Centre and Central Services Platform

· Telefónica launches new MNC online experience at www.multinationalsolutions.telefonica.com

Telefónica has opened new operational units in 15 European countries to further enhance the integrated telecommunications services it offers Multinational Corporations across the region. As well as strengthening its international network capabilities, Telefónica today also unveiled a new suite of solutions for corporate customers, including the new Telefónica Multinational Solutions web portal, now live at: www.multinationalsolutions.telefonica.com.

Matthew Key, Chairman and CEO of Telefónica Europe, said: " Telefónica's global capabilities allow us to quickly and efficiently deliver both fixed and mobile solutions to multinational corporations anywhere in the world. The new offices and network infrastructure being deployed in Europe, supported by a new online experience and enhanced products and services, reinforces our commitment to this strategically important market segment. Telefónica is making good progress and is executing in line with the strategy to expand presence and services to corporate customers already announced in December 2008."

Telefonica is reinforcing and extending its global IP MPLS backbone across countries identified as of strategic importance to Multinational Corporations in Europe. The roll-out includes the provision of the following services: wide area network connectivity (WAN), centralised Internet access, local-area network (LAN) such as wireless LAN, fixed voice, mobile voice and data, as well as managed security.

The new offices and network infrastructure are being deployed by Telefónica International Wholesale Services. Offices in France, Belgium, Greece, Italy, Netherlands, Portugal, Sweden, Denmark, Estonia, Poland, Hungary, Switzerland, Austria, Romania and Bulgaria where Telefonica had no presence up until now are fully set up. This will further reinforce service provision for existing and future Multinational Corporation customers.

In January, Deutsche Post DHL and Telefónica announced that the German logistics company had selected Telefónica to manage its communications services across 28 European countries over the next five years to help it save more than €150 million in costs over the period.

This is aligned with the continuing development of integrated telecommunications solutions and European expansion announced in December 2008 to further enhance the service provision for Multinational Corporations and other corporate customers with international needs across the region.

The new Telefónica Multinational Solutions web portal has been specifically designed to place the customer at the centre of the online experience. It embodies a refreshing approach to the market featuring a case study led customer journey, clearly demonstrating the way in which Telefónica is working with customers to realise opportunities to drive positive incremental business improvements. The portal focuses on important customer 'pain points' utilising both the case studies and clear benefit led language to effectively communicate dynamically with this strategically important market segment. MNC's visiting the portal are encouraged to contact Telefónica, underpinning a two way dialogue approach.

In addition to developing clear communication channels Telefónica continues to invest in the expansion of its network across Europe and its product and service portfolio, complementing its vast current capabilities in Latin America.

Further to the network investment, extensive progress has been made with regard to the delivery of an enhanced Service Management Centre to support fixed and mobile services according the needs of our Multinational Customers. A Central Services Platform has been developed, , delivering:

- Telecom expense management

- Central reporting

- SLA management

- Central management of systems and infrastructure

- Device management

- Trouble ticketing

- Asset management

- Online ordering

- Customer portal

Matthew Key added: "Providing a personalised customer service is an important aspect of Telefónica's value proposition to MNC customers. The new service management functionality available in Europe is a competitive key differentiator that we can offer to our customers."

"New generation mobile networks now cover 12 out of 13 regional towns," says Jan Karas, Director for Segment Marketing, Telefónica O2, adding, "We are the only operator on the domestic market offering the fastest and most beneficial mobile internet connection, including the opportunity to freely choose mobile and fixed services."

Until October 30, the residents of Liberec, Karlovy Vary and Zlín can take advantage of a special offer for a mobile connection. Everyone who orders a new activation of O2 Mobile Internet on its own pays only CZK 600 with VAT per month. They will be online almost instantly. All they have to do is pull a USB modem the size of a common flash drive out of their pocket. With the signing of a 24-month contract they can get this modem for just 1 crown.

The most advantageous offer available to customers right now enables them to get O2 Mobile Internet in combination with the O2 Internet service for home. They thus get two internet connections for the price of one; both services are only CZK 750 with VAT per month. With the concurrent use of any O2 NEON tariff, they pay CZK 100 less.

Ways to watch O2 extraliga ice hockey:

O2 TV

All customers who activate the basic O2 TV Sport channel package, or the additional Sport Plus channel package, also get free access to extraliga broadcasts automatically. Ten separate channels offer all games that selected extraliga clubs are playing on home ice throughout the entire season - regular, play-offs, play out, and barrage. Customers who have already paid for the basic O2 TV Sport channel package, or the additional Sport Plus channel package, in the past will have it activated again automatically for free right from the first round, which begins on September 9, 2009.

O2 TV is broadcasting matches from individual stadiums on the following channels:

Mobile phone

This year hockey fans from the ranks of O2 customers have the opportunity to watch matches online through their mobiles. At the O2 mobil mobile portal, all they have to do is click on " Hokej TV" (Hockey TV) in the "Video" section. The O2 mobil mobile portal once again offers the latest results and information about individual matches under "O2 Hokej" (O2 Hockey) in the "Zprávy a sport" (News and sports) section. Of course there will be extensive news reports, results, and exciting contests in the pages of O2hokej.cz. Customers can also receive all results, match statistics, and the latest O2 extraliga standings in one MMS directly on their mobiles. Customers can also use the ELH Souhrn kola (ELH Round Summary) MMS service, which provides a summary of matches, including shots on goal, substitutes, lines, and the latest standings after the round is finished. To activate the service, the customer simply needs to send an SMS with the keyword A ELH to the phone number 999 888. The service can also be deactivated at any time by sending an SMS with the keyword D ELH to the same number. Activation and deactivation SMS messages are free, the price of one received MMS is CZK 6.90 with VAT.

Internet

The www.hokej.cz portal, in cooperation with O2, offers everyone the opportunity to watch live broadcasts at www.tv.hokej.cz absolutely free of charge. In comparison with other portals, which only offer text-based online broadcasts, this is a very attractive offer not only to hockey fans.

At stadiums

This season Czech hockey fans can get, or win, fabulous prizes right at the stadiums. Right at the beginning of this O2 extraliga season a gift in the form of a hockey DVD featuring highlights of the 2008/2009 extraliga season has been prepared for fans who come to support their teams at their first home matches. O2 hostesses will give out the DVD at the stadiums on September 9 and 11.

Just like last year, the "Spot on the Bench" contest will be held, giving fans the opportunity to watch one match while sitting on the bench with their favorite team, thus getting to know the joy of victory, or the bitterness of defeat, like a real team member.

O2 Extra

Once again O2 customers can get free tickets to ELH matches, in the O2 arena as well as other stadiums. Customers can reserve their tickets at www.O2extra.cz in the Moje Extra (My Extra) section. In addition, a hockey-related contest for fabulous prizes will also be held for the duration of the entire season.

"The combination of the fastest mobile internet connection in the Czech Republic and a compact netbook for a great price is the ideal solution for students. This netbook is smaller than a classic notepad. Quantity offered features is incomparably greater, allows access to the internet whenever and wherever,"says Jan Karas, Director for Segment Marketing, Telefónica O2, adding, "We have been running a new generation 3G mobile network that covers all of Prague for four years now, enabling customers to get mobile connection speeds that now reach up to 3.6 Mb/s."

"The quality of the network in Prague is measured on a regular basis every quarter and has proven itself to be absolutely stable. The investment into building such a mobile network in Prague ranges in the billions of CZK. The number of BTS stations transmitting a 3G signal totals 750 in Prague,"< /em> says Josef Pokorný, Director for Radio Networks, Telefónica O2.

Until October 31, 2009 (or while supplies last), customers at Prague´s O2 shops can get a Dell Inspiron 1010 netbook with a ten-inch display and built-in UMTS modem for a very special price. A SIM card can be inserted directly into the netbook so that nothing will interrupt their surfing while traveling. With O2 Mobile Internet for the special monthly fee of CZK 600 and the signing of a 24-month contract they can get this netbook for CZK 4,995 with VAT. With the O2 Mobile Internet Plus service for CZK 1,000 per month, they can get it for merely CZK 1 with VAT.

Telefónica Europe today announced that Juraj Sedivy is leaving his post as Chief Executive Officer of Telefónica O2 Slovakia. Sedivy will be succeeded on 1 October by John McGuigan, Customer Service General Manager at Telefónica O2 UK.

McGuigan - who in his previous role was responsible for the provision of customer service for more than 16 million customers in the UK - will report directly to Salvador Anglada, Chairman of the Board of Directors and Chief Executive Officer of Telefónica O2 Czech Republic.

Salvador Anglada said: "I am delighted to announce that John McGuigan has been appointed to the role of CEO of our Slovak operation. John brings great experience and track record in the field of customer service, and will prove invaluable in ensuring that quality of customer experience is consistently at the highest possible levels."

Juraj Sedivy assumed the role of Chief Executive Officer of Telefónica O2 Slovakia at start-up in 2006.

Matthew Key, Chairman and CEO of Telefónica Europe, said: "Consistent with his outstanding service for the company over 12 years, Juraj Sedivy has played a crucial role in establishing and developing our business in Slovakia, his dedication and vision reflected by the fact that the business enjoyed its best-ever customer net additions in the last financial quarter. In appointing John McGuigan, I am delighted we have once again promoted from within, demonstrating the breadth and depth of management talent at Telefónica. With John's wide experience in telecommunications, he is well placed to lead and deliver the next chapter of growth in Slovakia."< /em>

Juraj Sedivy joined Czech Telecom in 1997 and in his role of Chief Financial Officer and First Vice Chairman of the Board of Directors led several key strategic initiatives, among other acquisition process of Eurotel in 2003 and successful privatization process in 2005. Post privatization, he served in the position of Chief Financial Officer of Telefónica O2 Czech Republic, one of the first fully integrated fixed and mobile telecommunications operators in the world, Over last three years, Juraj and his team succeeded in a highly competitive Slovak telecommunications market,

John McGuigan, 49, joined O2 in May 2007 from NHS24, a UK National Health Service telephone triage service for Scotland, where he was Chief Executive for two years. In this role, he was responsible for approximately 1,400 members of staff. Prior to this, John was a Director for Frontline Consultants for seven years. Frontline provides strategic advice to help drive the performance of organisations across a broad range of sectors including national and local government, healthcare, economic development, education and business.

The newest addition to Telefónica's Europe's business portfolio, Telefónica O2 Slovakia launched its commercial service in February 2007 and gained more than110,000 customers in its first 12 days. The business remains one of the fastest growing networks in Europe, recording a year-on-year increase of 52 per cent in the first half of 2009.

"Customers of prepaid services want to have their costs for telecommunications services under complete control. Therefore, we are providing them with internet on their mobiles for an unrivalled low price and enabling them to go online wherever and whenever they want. In addition to inexpensive internet, O2 NA!VÍC customers can enjoy the benefits of prepaid O2 NA!VÍC tariffs, including calling and sending SMS messages to O2 mobile numbers on weekends for just CZK 0.50," says Adrian Garrett, Marketing Director for Prepaid Services.

Customers can activate Internet on Your Mobile by sending an SMS with the keyword INT to the phone number 999 111 after they have recharged their credit with at least CZK 300. They can then use the internet on their phones for a period of four weeks. With every additional recharge of at least CZK 300, the customer can change their benefit free of charge or they can keep their existing one. Other benefits include: weekend calling to O2 mobile numbers for CZK 0.50 per minute, evening calling to O2 mobile numbers for CZK 0.50 per minute, and texting to O2 mobile numbers on weekends for CZK 0.50 per SMS. If the customer does not recharge the required amount, they can use the Internet on Your Mobile service for CZK 40 with VAT per week.

Everybody who purchases a new prepaid card with the O2 NA!PIŠTE or O2 NA!HLAS tariffs by September 30, 2009 gets a special bonus of 100% additional credit. With a single recharge of at least CZK 300, they then get not only one of four benefits, but also 100% additional credit. The bonus does not apply to content services, audiotext services, and the use of premium-rate numbers.

"We are the only operator on the domestic market that offers customers the opportunity to combine fixed and mobile services for their households any way they choose. Customers do not have to choose between two kinds of connection or pay for both, because they can get both for one unique price. In addition, with O2 Mobile Internet they can get a miniature USB modem for just one crown," says Petr Matějovský, Director for Marketing, Residential Segment, Telefónica O2.

All customers can now surf at home and on the road for the special price of CZK 750 with VAT per month for a period of one year. All they have to do is order the O2 Internet service together with O2 Mobile Internet and sign a 24-month contract by October 30, 2009.

Telefónica O2 is also offering its mobile customers other benefits. Those who are using any of the O2 Neon tariffs, get a discount of CZK 100 and pay just CZK 650 per month for both internet connections.

Customers also have the option of getting high-speed O2 Internet for their homes on its own for just CZK 600 per month and a wide range of other advantageous service combinations.

Detailed overview

"Every natural catastrophe that strikes people's lives brings with it several problems and changes to priorities in life. This year's floods affected many individuals and families and caused a great deal of damage," says Jan Karas, Director of Marketing, Residential Segment, Telefónica O2, adding, "Many residents in areas that were hit hard by the floods have to deal with several problematic, as well as banal, matters, such as getting new phones, replacing water-damaged SIM cards, and paying their bills. For this reason we have decided to offer flood victims individual help and assist them the way we know how - through communications technologies."< /em>

During the first days of the floods, Telefónica O2 reacted and announced an employee collection fund. Nine hundred and nine of the operator's employees donated a total of CZK 460 thousand. O2 increased this amount to one million crowns and donated it to Člověk v tísni (People in Need), which is using it to rebuild heavily damaged elementary and nursery schools in the Nový Jičín region.

For residents who have been affected by the floods, special programs that offer immediate solutions to the ongoing situation have been prepared. The first of this is the opportunity to get new SIM cards free of charge with the same phone number as before, a discount worth CZK 1,000 on the purchase of a new mobile or fixed-line phone, an ADSL connection, ISDN modem, or a set-top box for O2 TV.

Those interested also have the opportunity to get a CZK 500 discount on a new Nokia 1661 mobile phone (CZK 495 after the discount) or Motorola W230 (CZK 695 after the discount) in order to be able to make calls as soon as possible. In addition to this, they can arrange, on an individual basis, a deferral of payment for fixed and mobile services with a signed agreement of up to a quarter of a year. Obligations towards existing debts will also be frozen and, when necessary, involve the reactivation of numbers in cases where services have been put on hold due to failure to comply with commitments.

With regards to the fact that people affected by this natural disaster most likely have a stronger need to communicate, O2 is offering them a 50% discount on calls from mobile phones within the Czech Republic for their next two billing periods. Prepaid card users can get CZK 100 additional credit for a period of six months.

Customers can request the above-mentioned assistance at the operator's brand stores up to one month following the occurrence of damages, or until the end of September if damages were cause before August 17. Changing payment due dates can be done by calling the toll-free customer care line at 800 123 456, where customers can also get other information. In order to claim benefits, it is necessary to present an identification document (or substitute document) and any document that provides evidence that the customer's property was damaged significantly by a natural disaster. This can be, for instance, a document for the provision of immediate emergency financial assistance, protocol for insurance claims, confirmation from a municipal or public office, or any other document that confirms the fact that the applicant was significantly affected by a natural disaster.

This new feature is being provided as another free benefit for all who are registered in the O₂ Extra customer program. Registration and participation in the program are free and can be carried out at www.o2extra.cz in the Moje Extra (My Extra) section. The only condition for use of the O2 Záloha (O2 Backup) service is that the user's phone must support SyncML technology, which most modern handsets can do.

"Nearly everyone has experience with losing or damaging a mobile phone or perhaps with the situation of a child unintentionally erasing entire entries. In these cases, the biggest problem is the loss of all saved contacts. It is now possible to get a new handset for a couple of crowns and we know how to change a SIM card with an old number within seconds, but until now saved data was irreplaceable," says Bohdan Tetiva, Director for Product Marketing and Public Loyalty programs, Telefónica O2, adding, "Similar services have proven successful in Great Britain and Spain, where we have been offering them for a while now."< /em>

Using the service is very easy. Those interested simply click on O2 Záloha in the Moje Extra section at www.o2extra.cz. They then enter their device's phone number, after which they will receive an SMS with an authorization code. The application then guides them through synchronization selection and settings in five easy steps. In accordance with the instructions, this is confirmed in the phone's menu and all data is sent through a mobile network to the O2 backup server. The customer does not pay for data storage, the SMS they receive, or even for connecting to the internet during synchronization.

The main benefit (in comparison with the classic backup method using a cable and a PC) is the fact that the customer's data is safely stored in O2's professional backup datacenters. With this customers can access their data from any computer (or phone) connected to the Internet, and they won't lose their data in the event that their own computers are damaged.

The technology only backs up data that has been stored in the phone's memory. Whenever someone saves a contact onto a SIM card, it is important to copy this contact into the phone's memory before backing up. The service also requires the mobile phone that supports GPRS data transfers (a standard feature). There are currently 40 handsets for which the data backup service can be used, which represents around 1.1 million O2 service users. The number of supporting phones will expand gradually and other functions will be added to this service.