FON Receives euro 10 MM to Further Its Exponential Growth

FON, the Largest WiFi Community in the World, Closes Its Second Round of Financing with Existing and New Shareholders

MADRID, Spain, March 9 /Xinhua-PRNewswire/ -- FON announced today that it has raised an additional euro 10 million from both current and new investors. This comes one year after FON received euro 18 million in financing from Google, Skype, Index Ventures and Sequoia Capital. During its first year, FON has become the largest WiFi community in the world with more than 320,000 members and 120,000 WiFi access points, 60,000 of which were added in the last 60 days.

FON is not disclosing the names of its new investors at this time, but will do so through an announcement at a later date.

The funds, together with the insight and expertise of the investors, will help further FON's expansion. FON intends to focus on growing and offering more services and products to its Community members while continuing to increase its market penetration by reinforcing its presence through retail channels and partnership deals.

In the past year, FON entered into partnerships with major ISPs such as Neuf Cegetel, Labs2, Elitel and Interoute in Europe, and Excite and Seednet in Asia. Among gadget manufacturers, FON teamed up with Skype and Zing to provide WiFi access to FONspots on Skype Phones and Sansa Connect WiFi enabled gadgets. Recently, FON has also launched campaigns with Skype, Paypal, Onet.pl, and Bebo to promote FON amongst their users.

Martin Varsavsky, FON's founder and CEO, reflects on the importance of this second financing round and adding new shareholders, "we are very proud of what we have built this last year with our fantastic shareholders and just as proud to welcome the support and insight from the new ones. Having some of the most respected players in the world validates and strengthens FON's vision."

About FON

FON is building the world's largest WiFi community. Founded in 2006 in Madrid, Spain, FON's mission is to stimulate growth of WiFi Internet access through its WiFi sharing Community of "Foneros". FON's La Fonera WiFi routers have been specifically designed to enable Foneros to share their home access points with the FON Community. In return for sharing, Foneros gain free WiFi access everywhere in the world they find another Fonero. FON's investors include Google, Skype, Index Ventures and Sequoia Capital. For more information, visit FON at http://www.fon.com .

About Skype

The Global Internet Communications Company founded in 2003, allows people everywhere to make unlimited voice and video calls for free. Skype is a little piece of software that makes communicating with people around the world easy and fun. With Skype you can say hello or share a laugh with anyone, anywhere. And if all of you are on Skype, it's free.

Skype is available in 27 languages and is used in almost every country around the world. Skype generates revenue through its premium offerings such as making and receiving calls to and from landline and mobile phones, as well as voicemail and call forwarding. Skype, based in Luxembourg, has relationships with a growing network of hardware and software providers and is an eBay company (Nasdaq: EBAY).

About Google

Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit http://www.google.com .

About Index Ventures

Index Ventures is a leading pan-European venture capital firm dedicated to working with entrepreneurs who have the drive and ability to build world-class technology and life science companies. The Index Ventures team, which began investing in 1992, has a deep technology and scientific focus and the ability to leverage a network of cross-Atlantic strategic relationships. Index proactively seeks out the top entrepreneurial teams in each investment area and leverages its core assets in helping the entrepreneurs build their company into a global leader. Index Ventures investors include leading technology firms and institutional investors. To learn more about Index Ventures visit http://www.indexventures.com .

About Sequoia Capital

Since 1972, Sequoia Capital has provided startup venture capital for very smart people who want to turn ideas into companies. As the "Entrepreneurs Behind the Entrepreneurs", Sequoia Capital's Partners have worked with innovators such as Sandy Lerner and Len Bozack of Cisco Systems, Jerry Yang and David Filo of Yahoo!, Gaurav Garg of Redback Networks, Larry Page and Sergey Brin of Google, Dan Warmenhoven of Network Appliance, Max Levchin and Peter Thiel of PayPal (eBay), T.J. Rodgers of Cypress Semiconductor, Lou Tomasetta of Vitesse Semiconductor, Steve Jobs of Apple Computer and Larry Ellison of Oracle. To learn more about Sequoia Capital visit http://www.sequoiacap.com .

Media Contacts:

FON global:

Tania Cavada

FON

Phone: +34-91-291-7685

Fax: +34-91-291-7688

Email: tania.cavada@fon.com

Web site: http://www.fon.com

FON Hong Kong:

Ibrahim El-Mouelhy

FON Hong Kong

Phone: +852-2534-1234

Email: pr@outblaze.com

Web site: http://www.fon.com/hk