Press Release

7 July 2009

Telefónica and Palm announce exclusive in Europe

Palm Pre to launch with O 2 & Movistar In Spain, Germany, UK & Ireland

MÜNCHEN. Telefónica and Palm, Inc. today announced an exclusive agreement to sell the Palm® Pre™ phone initially in Spain, United Kingdom, Ireland and Germany when the device is launched in Europe in time for the winter holidays.

“We are fast becoming the home of the with the addition of the hotly- anticipated Palm Pre to our already extensive portfolio,” said Matthew Key, chairman and chief executive officer, Telefónica Europe. “Our customers will be the first outside of North America to experience one of the most successful mobile devices of the year.”

“Europe continues to be an important region for Palm, and we’re proud to work with O2 and Movistar to spread the excitement Palm Pre has already ignited in North America,” said Jon Rubinstein, Palm chairman and chief executive officer. “Since we showed Palm Pre at Mobile World Congress in February, there’s been a great deal of anticipation for an announcement about European availability, and that day is here.”

Palm Pre, the first phone based on the new Palm webOS™ mobile platform, brings your information from the many places it resides – on your phone, at work or on the web – into one simple, integrated view.

Palm Pre introduces a breakthrough user interface and hardware design that makes it one of the most integrated and user-friendly mobile phones on the market. Featuring a smooth, elegantly rounded ergonomic design and a physical keyboard that slides out only when needed, Palm Pre is engineered to feel natural in your hand and comfortably small in your pocket. When closed, Palm Pre is ideal for phone calls, web browsing, music, photos and videos; when open, Palm Pre is optimized for email and text messaging. It provides an exceptional experience for phone calls, whether held to your ear, over speakerphone or via .

Customers who would like to register to receive additional information about Palm Pre and be notified when it’s available can register at: UK and Ireland: http://www.palm.com/uk-pre-notify Germany: http://www.palm.com/de-pre-notify

Telefónica O 2 Germany GmbH & Co. OHG Georg-Brauchle-Ring 23-25 80992 München Deutschland www.o2.com/de

Ust.-Id.-Nr. DE 811 889 638. Amtsgericht München HRA 70343. Gesellschafter: Telefónica O 2 Germany Management GmbH. Amtsgericht München HRB 109061 und Telefónica O 2 Germany Verwaltungs GmbH. Amtsgericht München HRB 121389, beide ebenda. Geschäftsführer beider Gesellschafter: René Schuster, Vorsitzender. Antonio Botas Banuelos. Andrea Folgueiras. Markus Haas. André Krause. Johannes Pruchnow. Lutz Schüler. Carsten Wreth.

Spain: http://www.palm.com/es-pre-notify

About Telefónica Telefónica is one of the world’s largest telecommunications operators by market capitalisation. Its activities are centred mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It operates in 25 countries and has a global customer base of 260 million. Telefónica’s growth strategy is focused on the markets in which it has a strong foothold: Spain, Europe and Latin America. Telefónica is a 100% private sector company with its shares listed in Madrid and other stock exchanges and more than 1.5 million individual shareholders.

Telefónica O 2 Germany GmbH & Co. OHG belongs to Telefónica Europe and is part of the Spanish telecommunication group Telefónica S.A. The Company offers its German private and business customers postpaid and prepaid mobile telecom products as well as innovative mobile data services based on the GPRS and UMTS technologies. In addition, the integrated communications provider also offers DSL fixed network telephony and high-speed internet. Telefónica Europe has more than 47 million mobile and fixed network customers in Great Britain, Ireland, the Czech Republic, Slovakia and Germany.

About Palm, Inc. Palm, Inc. is a leading mobile products company, creating instinctive yet powerful mobile products that enable people to better manage their lives on the go. The company’s products for consumers, mobile professionals and businesses include Palm® Treo™, Palm Pre™ and Palm Centro™ phones, as well as software, services and accessories.

Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm online stores ( http://www.palm.com/store ).

More information about Palm, Inc. is available at http://www.palm.com .

Please add the tag #Palm#Pre to your tweets or “PalmPre” to your blog posts about the Palm Pre phone, and follow Palm on Twitter at www.twitter.com/palm .

(1) Use of this device requires providing a valid email address, mobile phone number, and related information for account setup and activation. Unlimited usage data plan strongly recommended; additional data charges may apply. Within wireless coverage area only. Number of applications and actual performance will vary depending on applications used and actions performed.

Palm, webOS, Pre, Treo and Centro are among the trademarks or registered trademarks owned by or licensed to Palm, Inc. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

More information:

Telefónica O 2 Germany GmbH & Co. OHG Press Relations Albert Fetsch, spokesman Georg-Brauchle-Ring 23-25 80992 Munich t +49 (0) 89 2442-1220 f +49 (0) 89 2442-1209 e [email protected] http://www.o2online.de/presse