Ono TV subscribers down 8,000 in 1Q 2014

MADRID — Grupo Corporativo ONO, S.A. (“Ono”), the second largest provider of broadband Internet, pay television and fixed telephony services and a fast growing provider of mobile services in Spain, announced today the consolidated unaudited results for the first quarter ended March 31, 2014.

On March 17, 2014 the shareholders of Grupo Corporativo Ono S.A. (“Ono”) agreed to sell all of the shares in Ono to Vodafone for a total consideration of €7.2 billion. Final completion of the transaction is subject to the approval of the relevant competition authorities.

In October 2011, we officially launched our next generation TV service (TiVo) to customers in Madrid and Barcelona and since then we have made this service available in our entire network.

This innovative product, which we believe is unmatched in Spain, provides our customers with a high quality interactive experience and a wide variety of content combining 37 HD channels (HD leadership in Spain), 3D functionalities and broadband connectivity with a powerful and personalized search engine and a PVR (Personal Video Recorder).

As of March 31, 2014, we had over 382 thousand TiVo services which represent 49% of our TV customer base. We believe that the TiVo results so far suggest positive market acceptance as showcased by the positive momentum in customer acquisitions, low churn levels and high satisfaction metrics.

With the aim of continuing to improve our pay TV offering, in October 2013 we upgraded our TiVo service with new functionalities that include an improved user interface, an improved search engine, the ability to share content between different TiVo boxes within a household and a new energy saving mode amongst other.

We intend to continue improving our pay TV offering in the near future with the development of new products and services such as TV online. We believe this will help us to increase the number of our TV customers and revenues going forward.

Television services (´000):

1Q 14  4Q 13  % change  1Q 13  % change
-----  -----  --------  -----  --------
  782    790    (1.0%)    854    (8.4%)