Telefonica Enters Into Mobile DRM Partnership With Intertrust

Companies to test Marlin technology in Spain

Madrid and Sunnyvale, CA, February 20, 2007 - Telefonica Moviles España, Telefónica O2 Europe and Intertrust Technologies Corporation today announced an agreement for working together in developing the market of mobile content services and DRM related technologies. The agreement includes a trial of Marlin DRM and OMA technologies.

Today's agreement forms the basis for Europe's leading mobile and fixed network operators to deploy DRM-based content distribution services. The purpose of the trial is to evaluate Marlin's ability to provide consumer-friendly content services over mobile and fixed line services to mobile handsets, PCs and other consumer electronics devices and to evaluate interoperability between OMA v.2.0 devices and other Marlin devices. The trial is scheduled to go live in Q2 2007.

"We are constantly evaluating flexible, open, standards-based technologies that enable a convergent entertainment experience for our subscribers that cross fixed and mobile data networks," said Mr. Cayetano Lluch, Technology General Manager of Telefonica Móviles España. "Marlin's rich feature set and ability to run in mobile, PC and consumer electronic devices makes it a natural fit for such systems."

"O2 sees DRM as an important infrastructure enabler for rich media data services," said Dave Williams, chief technology officer of Telefonica O2 Europe. "We welcome these trials of DRM technologies as they maximize our technology choices in enabling an enhanced consumer service proposition."

Marlin is a DRM technology standard originally developed by Intertrust, Panasonic, Philips, Samsung and Sony that is available through an open technology initiative called the Marlin Developer Community (www.marlin-community.com). Marlin enables consumers to share their DRM protected content between the multiple devices and services that constitute their home network. Marlin supports mobile, broadband, and digital TV and IPTV applications, and is compatible with the Open Mobile Alliance v.2.0 standard.

"We are delighted to work with Telefonica to implement Marlin in a real-world setting," said Talal Shamoon, chief executive officer of Intertrust. "We hope to work together to illustrate that Marlin-based content sharing systems deliver a scaleable and attractive entertainment experience over multiple delivery channels."

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About Telefonica

Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both. The company has a significant presence in 23 countries and a customer base that amounts more than 200 million accesses around the world. Telefonica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy. www.telefonica.es

About Intertrust Technologies Corporation

Intertrust develops and licenses intellectual property for Digital Rights Management (DRM) and trusted computing. The Company holds over 60 U.S. patents and more than 100 patent applications pending worldwide. Intertrust's patent portfolio covers software and hardware techniques that can be implemented in a broad range of products that use DRM and trusted computing technologies, including computer operating systems, digital media platforms, web services, and enterprise infrastructure. Intertrust has research, engineering, and IP groups focusing on developing and monetizing next-generation technologies and inventions.

Telefonica Media Contacts

Telefónica Móviles España
Press Office
Tel: +34 680 01 86 00
prensa@tsm.es

Perception & Image
Tel: +34 91 351 39 37 Fax: +34 91 351 40 67
Ricardo Schell: ricardos@perception-image.com

Telefonica O2 Europe
Simon Gordon
Tel: +44 (0) 7710 070698
simon.gordon@O2.com

Intertrust Media Contacts

Robin Buckley (703) 533-9805 robin@buckleykaldenbach.com
Isabel Kaldenbach (703) 979-3076 isabel@buckleykaldenbach.com