Telefónica Digital Acquires Video Platform Leader TokBox

  Telefónica Digital Acquires Video Platform Leader TokBox

Extends digital communications suite with face-to-face online and mobile video
                                 capabilities

Business Wire

MOUNTAIN VIEW, Calif. -- October 25, 2012

Telefónica Digital today announced its acquisition of TokBox, the leading
video communications platform. The acquisition of TokBox, based in San
Francisco, builds on Telefónica Digital’s strategy of driving innovation in
its core business of communications, with capabilities that will now extend
beyond voice and messaging to live video.

TokBox’s OpenTok Video Platform enables the rapid development of live
video-based communications services through the simple addition of video
calling into websites and mobile applications.

Telefónica will leverage TokBox’s Platform to enhance the communication
services it offers business and consumer customers, adding cross-platform
Web-based video communications to its existing voice and messaging
capabilities. This will be offered both directly via tailored solutions and
through the provision of APIs and applications so businesses and developers
can produce their own services. Telefónica and TokBox will work to incorporate
video APIs into the BlueVia platform, creating a unified video, voice and text
API service with global reach.

Matthew Key, CEO of Telefónica Digital said, “Telefónica is all about
empowering our customers through new and innovative digital services. By
adding TokBox’s unique capabilities to our communications portfolio, we will
allow our customers to leverage the full potential of web-based video
communications in their own business models.”

TokBox launched the OpenTok Video Platform in November 2010 with companies
such as American Idol, Ford and Diet Coke having used its technology. It has
also delivered significant technology innovation, being the first to add video
chat to any iOS application and pioneering WebRTC-based video solutions.
WebRTC is critical to the future growth of web-based video communications,
allowing for video calling to simply and easily be conducted via a web browser
without the need to install plug-ins.

“Despite all our progress to date we are still in the early stages of the
industry and this is a very exciting opportunity to accelerate the development
of the OpenTok platform and rapidly expand its global reach and presence,”
said Ian Small, CEO of TokBox. “Integrating our video capabilities with
Telefónica existing voice and text offering creates an advanced real time
communications suite for Telefónica’s hundreds of millions of customers around
the world.”

“Congratulations to Ian and his team for building a platform that captured the
hearts of customers and the minds of developers,” said Roelof Botha, Partner
at Sequoia Capital and TokBox Board Director. “This is a strong fit for
Telefónica’s communications suite and will make it even easier for hundreds of
millions of people to connect and collaborate.”

Ian Small will remain as CEO of TokBox and Carlos Domingo, Director of Product
Development & Innovation at Telefónica Digital, will join the TokBox Board of
Directors and become Chairman of the company. The acquisition was led by
Telefónica Digital’s Silicon Valley-based venture investment team.

About Telefónica Digital

Telefónica Digital is a global business division of Telefónica. Its mission is
to seize the opportunities within the digital world and deliver new growth for
Telefónica through research & development, venture capital, global
partnerships and digital services such as cloud computing, mobile advertising,
M2M and eHealth. It is also driving innovation in over the top communications
under a new umbrella brand called TU and in Big Data through Telefónica
Dynamic Insights. Telefónica Digital will deliver these new products and
services to Telefónica's 311 million customers as well as entering new
markets. It is headquartered in London with regional centres in Silicon
Valley, Sao Paulo, Spain and Tel Aviv. Jajah, Terra, Media Networks Latin
America, 48 and giffgaff are all managed under the Telefónica Digital
umbrella.

To sign up for news alerts and read commentary on Telefónica Digital, visit
www.telefonica.com/digitalhub and track them on Twitter @tefdigital

About TokBox

OpenTok from TokBox is the leading global online video communications
platform, enabling the addition of live group video communications into any
web property. Incorporating solutions for enterprises, entrepreneurs and
developers, anyone with a web presence can harness the power of live video to
drive user engagement within their site or service.

The scalable, customizable platform incorporates proprietary quality-enhancing
technology and enables high quality video sessions with up to 20 live
participants and unlimited viewers. TokBox is headquartered in San Francisco,
CA.

Contact:

US
Telefónica Digital
Pam Smith, +1 650-814-4419
pam.smith@telefonica.com
or
Access PR
Jen Garcia, +1 415-844 6244
jgarcia@accesspr.com
or
Europe
Nick Wilkins, +44 7712 020937
nick.wilkins@o2.com
or
TokBox
Paul Naphtali, +1 650-390-7666
paul@tokbox.com