Madrid, 17th. April, 2000 - Telefónica has reached an agreement with Sol Meliá to create an Internet portal together with Barceló and Iberostar for B2B e-commerce between hotel companies and suppliers in the natural markets of the Spanish hotel chains: Spain, the Mediterranean and Latin America.

The company aims to achieve a leadership position in this B2B market with the objective of providing the best possible service to hotels and their suppliers through the optimisation of the purchasing process for goods and services using new technologies and the Internet as the most efficient means of B2B transactions.

The importance of Spanish hotel and tourism companies in the Mediterranean and Latin America has been key to Telefónica�s decision to choose the hotel industry for the first project of their strategy of creating Internet B2B portals in different �vertical� industries in Spain and Latin America. In the coming months Telefónica expects to launch 10 to 15 vertical platforms in association with leading companies in each of the different business sectors. 

The hotel industry in the mentioned target markets produce a high volume of aggregate sales �over 12,000 million Euros- for a wide range of products and services involving a large number of buyers and sellers in a highly fragmented market. Telefónica, Sol Meliá, Barceló, Iberostar and BBVA understand that an Internet portal will add value for both buyers and sellers by reducing costs and increasing efficiency and distribution.

Sol Meliá, Barceló and Iberostar demonstrate the commitment of the Spanish hotel industry �leader in its natural markets- to progress in the implementation and use of new technologies in their hotel management business through constant innovation. The process improvements and innovations will be offered to the entire hotel industry with a specific guarantee of neutrality and with the technological and business reliability provided by Telefónica.

The neutrality of the portal also aims to encourage the integration and joining of forces of hotel partners and other companies that can bring hotel purchasing technology to the shareholders. The five founding member companies expect to announce in the near future the incorporation of important and relevant partners in their natural markets, and particularly the most important Latin American hotel companies that are being invited to join the project.

The company will be managed by an independent management team which will also hold a minor stake. They will have a specific mandate to offer portal services to the whole of the hotel industry and to ensure that the portal provides a full range of attractive services for both buyers and sellers in four main areas:

• Purchasing Services: an electronic marketplace where suppliers and buyers of hotel products and services may meet to offer their wares and place their orders.
• Sales Services: suppliers and hoteliers will use the portal to sell all kinds of assets, inventory surpluses or used goods through direct sales or auctions.
• Human Resources Services: the company will create the largest database of hotel industry personnel in the target markets, including the selection and rating of personnel at all levels as well as on-line training services.
• Other services of interest such as news, chat communities, etc.

The portal will begin its activities in the coming months with the objective of building a fully operative site in Spain before the end of the year, then moving on immediately to Latin America and the Mediterranean. Total investments are expected to reach 30 million euros in the first 24 months of operation.

The technological platform will be provided by Telefónica, possibly through their strategic alliance with Ariba. Other complementary technological platforms may be used if the services required by users make this advisable. 

The main benefits for both buyers and sellers will include:

•  Reduced administrative costs.
•  Reduced prices.
•  Optimisation of the purchasing process, reduced inefficiency and greater transparency.
•  New markets and distribution channels for suppliers.
•  Reduction of inventory costs.
•  Creation of a community with content of interest to the whole sector.

Sol Meliá is the leading hotel company in the Spanish market and in Latin America and the Caribbean. It is also the second largest hotel company in Europe. The company currently operates more than 260 city and resort hotels in 27 countries on 4 continents. Sol Meliá has recently announced the creation of a new E-Business Division charged with adapting all of the companies sales and procurement operations as well as its internal management to the Internet environment.

Barceló Empresas is one of the leading companies in the Spanish tourism industry, with total sales of 117,805 million pesetas in 1999. It is present in 25 countries and comprises:

• A Travel Division acting in both the wholesale (tour operator) and retail (sales to the public) markets and in incoming tourism, operating under the Barceló Viajes, Interopa, IT Travel, Eurojet, Calcos, Verger, Aurora and TURAVIA brands.
• A Hotel Division, the third largest Spanish hotel company by sales and number of rooms.
• Holdings in various other sectors such as airlines, publishers, cruise lines...Barceló is a profitable company (cash-flow of 12,971 million pesetas in 1999) and is controlled by the Barceló family under the management of an experienced team of travel industry professionals.

• Iberostar Hotels & Resorts: 45 properties (30,000 beds) in the Balearic Islands, Andalusia, Canary Islands, Greece, Turkey, Tunisia, Bulgaria, Mexico, Cuba and the Dominican Republic.
• Viajes Iberia: 250 retail travel agents in Spain.
• Iberojet and Solplan make up the Spanish Tour Operator Division and Iberojet International is the main tour operator bringing Latin American travellers to Europe.
• Iberoservice and Iberoservice International are incoming agencies with 45 offices in Spain, major European capitals, the United States and the Caribbean.
• Aerobalear is an airline broker.
• Iberworld is the company�s charter airline with 6 Airbus planes and more than 1 million travellers in 1999.