LINKÖPING, SWEDEN, June 23, 2003 - Kreatel Communications AB, leading
provider of solutions for TV-centric services in IP networks, has signed
an agreement with Telefónica, the leading telecommunications operator in
the Spanish- and Portuguese-speaking world. Kreatel is to provide its TV
software platform and IP-based set-top boxes (IP-STBs) in Telefónica's
launch of TV services over ADSL.

Telefónica, one of the largest telecoms sector companies in the world
with a customer base exceeding 90 million, has chosen Kreatel's IP set-
top box solution for the delivery of TV services over ADSL to
subscribers in Spain. The European telco pioneer is starting its rollout
in Alicante with Madrid and Barcelona to follow. Kreatel's solution has
successfully been integrated with Telefónica's infrastructure and the
delivery of set-top boxes has already started.

Telefónica will be the first former state-owned telco in Europe...