Chairman and Chief Executive Officer of Telefónica O2 Europe with effect from 31 January 2008.  He retains his position on the Board of Telefónica S.A., moving to the role of Non-Executive Director from 1 February 2008.  He has also been invited to join Telefónica’s Comisión Delegada (the executive commission of the Board).

Matthew Key (44), currently CEO of O2 UK, the largest business within Telefónica O2 Europe and the second largest wholly-owned subsidiary of Telefónica S.A., is appointed as the new Chairman and CEO of Telefónica O2 Europe.  Matthew has overseen a transformation of O2 UK’s performance over the past three years and today the company is the country’s leading operator in terms of revenues, subscribers and customer satisfaction.  In recent months, he has overseen the introduction of iPhone into the UK market and the successful launch of O2 Broadband.

Announcing the changes, Executive Chairman of Telefónica S.A., César Alierta, said:  “In the course of the last six years, Peter has built a business and brand of exceptional value. Since the acquisition of O2 by Telefónica two years ago, he has worked closely with me and has been instrumental in ensuring the success of the merger of the two businesses, whilst contributing to a significant increase in shareholder value and the growth of Telefónica as one of the world’s leading telecommunications companies.  I personally hold Peter in the highest regard and value both his extensive industry experience and his frank advice.  It is for this reason that I am delighted Peter will continue to play a vital role in the management of Telefónica as a member of the Comisión Delegada and Board.

“Under Matthew’s leadership, O2 UK has grown its revenue and profitability more than all of its competitors combined and has become a partner of choice in the UK market, with highly successful collaborations with world-leading brands such as Tesco and Apple.  He has also masterminded, with AEG, the delivery of The O2 - the ultimate entertainment complex in London.  In his new role, I am confident that he will continue to build on the strong position of Telefónica in the highly competitive European markets.”

Jaime Smith, who was appointed CEO of O2 Germany in June 2007, having previously led the integration and turnaround of Telefónica’s businesses in the Czech Republic, will also become Chairman of the Supervisory Board of Telefónica O2 Czech Republic, an independent company that is 70 percent owned by Telefónica and listed on the Prague Stock Exchange.  This position has been held to date by Peter Erskine.

A further statement, announcing the appointment of the new CEO of O2 UK, will be made in the coming weeks.

Matthew Key
Matthew Key joined O2 UK in February 2002 as Chief Financial Officer before becoming CEO on 1 February 2005.   During his time as CFO, he was responsible for the company’s financial performance, strategy, business development and regulatory functions.  Over the past three years, he has overseen a turnaround of the business, as the company has significantly outperformed the market and all of its competitors.  O2 is now the UK’s largest operator by revenues and customer numbers.  In 2007, the company launched, in conjunction with AEG, The O2 – which is on course to be the world’s most popular venue by the end of the year – and became Apple’s exclusive UK partner for iPhone.  Matthew was also instrumental in the creation of Tesco mobile, the 50:50 joint venture between O2 and Tesco and remains on its Board as a Non-Executive Director.

Matthew came to O2 from Vodafone, where he had worked within the retail and network divisions, before becoming Finance Director of Vodafone UK.  Prior to joining Vodafone, he held various financial roles at other major companies including Coca-Cola and Schweppes, Grand Metropolitan and Kingfisher.  Matthew qualified as a Chartered Accountant with Arthur Young in London in 1987.

Jaime Smith
Jaime Smith graduated in Economics and Business Administration (BA, Universidad Comercial Deusto, Spain) and holds an MA in Finance and Investments (Exeter University, UK).  Before joining Telefónica, he worked in the financial sector for a Spanish brokerage firm and for Banesto (BSCH Group) as Director for Global Equities in its fund management division.

He joined the Telefónica Group in 1999 as Director for Financial Planning at Telefónica Internacional and was promoted to Chief Financial Officer in December of the same year.  From October 2000 to December 2002, he was Controller of the Telefónica Group, following which he became Chief Financial Officer of Telefónica de España.

In June 2005, he was appointed Chief Executive Officer and Chairman of the Board of Directors of Ceský Telecom – the legal predecessor of Telefónica O2 Czech Republic.  In May 2007, Jaime Smith was appointed Chief Executive Officer of O2 Germany.  He has been a member of the Telefónica O2 Europe Board of Directors since January 2006.

Telefónica O2 Europe

Telefónica O2 Europe comprises integrated fixed/mobile businesses in the UK, Germany and the Czech Republic, along with mobile network operations in Ireland and Slovakia - all of which use ‘O2’ as their consumer brand.  Telefónica O2 Europe also owns 50% of the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK, Ireland and Germany respectively.  In addition, the group includes the Isle of Man fixed/mobile operator, Manx Telecom.

Telefónica O2 Europe, part of the Telefónica group, is headquartered in Slough, UK, and has more than 40 million mobile and fixed customers.