Telefônica Selects IBM for the Operation of Its Technology Infrastructure in Brazil

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SAO PAULO, BRAZIL - 20 Oct 2008: Telefônica, one of the largest telecommunications companies in the world, has entered into an agreement with IBM in Brazil (NYSE: IBM) to manage its midrange servers.

With the agreement, IBM's Services Center in Hortolândia, near São Paulo, will support the operation of all the Telefônica's midrange servers in Brazil. IBM also will provide support and maintenance services 24 hours a day, seven days a week to keep the company's IT infrastructure running and available to internal and external clients.

Telefônica also renewed a contract with IBM in Argentina for the same services. The contracts, valued at US$50 million, were signed in July 2008 and will last until December 2011.

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