ČESKÝ TELECOM LAUNCHES SPECIAL SPRING O2 Internet Expres OFFER

4.5.2006

ČESKÝ TELECOM has prepared a new springtime offer for those interested in broadband Internet. As of May 3, 2006, every new subscriber will receive the first month of their subscription to the O2 Internet Expres IDEAL, SPRINT, or MAXI services for merely one koruna. The service will also be activated for them for one koruna and, furthermore, they can take advantage of discounted prices for modems offered by the company – these prices start at one koruna. The springtime offer is valid from 3.5.2006 to 30.6.2006.

After the introductory benefits have been used, the monthly rates for subscribing to the services start at only CZK 399 (without VAT). In the basic offer, the modems for one koruna are manufactured by Sagem and Aethera. In another offer, D-link 362T and ZyXEL 660 modems cost only CZK 199 (without VAT), which is a sale price. Activation and the first month of service for only 2 koruna is valid with the signing of a 12-month contract. Customers can order the advantageous special offer electronically at www.internetexpres.cz, by calling 800 123 456 toll-free, at Telepoint and Telepoint Partner brand stores, at Eurotel sales outlets and authorised ČESKÝ TELECOM dealers.

In April, ČESKÝ TELECOM, a member of the Telefónica Group, decided to invest an additional 150 million koruna into the development of broadband connectivity in the Czech Republic. The resources will be put into the construction of new technological components in the network.

The main objectives of ČESKÝ TELECOM’s investment are to extend the accessibility of ADSL-based services for citizens and to increase the number of localities with access to broadband Internet to 98%. An investment in the amount of 150 million koruna should be specifically put towards the construction of new connecting components in the network, so-called DSLAMs. Therefore, from its own resources, the largest Czech telecommunications operator intends to contribute to fulfilling the objective of a project that it is working on together with the with the Ministry of Culture, the Ministry of Informatics and the Ministry of Education, Youth and Sports of the Czech Republic. This project aims to build a comprehensive, republic-wide broadband Internet access network.

For further information, please contact:
MARTIN ŽABKA
Press Spokesman
Tel: +420 271 463 359
Fax: +420 271 469 896
e-mail: tiskovy.odbor@ct.cz

ČESKÝ TELECOM, a. s., member of the Telefónica Group is the leading telecommunications company in the Czech Republic. Through its subsidiary company Eurotel Praha, spol. s r.o., it also has a significant presence in the Czech mobile services market. Further information about the firm and the services it offers is available at www.telecom.cz, which was rated as BestWeb 2003 in the WebTop100 survey.

Signum Temporis has consistently awarded ČESKÝ TELECOM for being one of the domestic capital market's most transparent firms in terms of providing information. Based on an open vote of specialists, members of the press and a nine-member committee, ČESKÝ TELECOM placed first in 2003, just as it did in 2001.

ČESKÝ TELECOM ranks among the most prominent firms on the Czech capital market in terms of capitalization and trading volumes. Its shares are also traded on the London Stock Exchange in the form of GDRs. ČESKÝ TELECOM's credit rating is the highest a Czech corporation can receive from top international rating agencies.

About Telefónica

Telefónica is Europe's leading integrated telecom company and second biggest in the world. Its activities are centred mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both of these.

The company is operating in 40 countries and together with ČESKÝ TELECOM has a customer base that amounts to more than 140 million access. Telefónica has a strong presence in Latin America, where the company concentrates part of its growth strategy.

Telefónica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4,921,130,397 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, São Paulo and the SEAQ International Exchange in London.