Terra Mobile, the new company created by Telefónica Móviles and Terra Networks in order to deploy the global Wireless Internet portal of Telefónica, and Phone.com, Inc, (Nasdaq: PHCM) a leading provider of mobile Internet software, applications and services today announced their intention to cooperate in establishing world-class implementations and advanced developments of wireless Internet services.

Through this arrangement, Terra Mobile will develop a portal for mobile phones, created to manage Telefónica's wireless telephone services and activities globally. More specifically, through this cooperation, the companies envisage Terra Mobile deploying Phone.com's portfolio of mobile Internet software applications and services, such as the Phone.com™ MyPhone™ mobile portal platform solution. As a part of the cooperation the two companies plan to create working teams in order to combine their wireless Internet expertise and technical resources.

Telefónica already offers WAP services in Spain based on the Phone.com™ UP.Link™ Server and the aim of the co-operation is to explore broader application areas and extend the relationship between the two companies. Telefónica Móviles and Terra Networks, owners of Terra Mobile, aim to improve their market position for their global operations through this work

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