1st Quarter Results-Part 3

Telefonica SA
17 May 2001


PART 3     

Telefonica S.A.

Consolidated Income Statement Full Consolidation
Unaudited figures
                                                           Euros In millions

                                          January-March                 %
                                          2001            2000       Change
Operating revenues                     7.603,3         6.447,7        17,9
Internal expend capitalized in 
   fixed assets (1)                      110,2           221,1       (50,2)
Operating expenses                    (4,410,9)       (3.778,5)       16,7
 Supplies                             (1,651,2)       (1.249,3)       32,2
 Personnel expenses                   (1.333,4)       (1.167,1)       14,2
 Subcontracts                         (1.293,4)       (1,223,6)        5,7
 Taxes                                  (132,8)         (138,4)       (4,1) 
Other operating income (expense) net     174,4           (70,5)      147,5
EBITDA                                 3.128,2         2.819,8        10,9

Depreciation and amortization         (1.772,6)       (1.636,0)        8,4

Operating profit                       1.355,6         1.183,8        14,5
Profit from associated companies        (141,1)           (1,3)        n.s.
Financial income (expense) net          (487,7)         (378,8)       28,7
Amortization of goodwill                (232,1)          (76,2)      204,5
Extraordinary income (expense)
net                                       29,2           126.2       (76.8)

Income before taxes                      523,9           853,8       (38,6)
                     
Income taxes                            (205,0)         (303,2)      (32,4)
                                       
Net income before minority Interests     319,0           550,4       (42,0)
                                          
Minority interests                       112,8          (204,3)        c.s
                                                                  
Net income                               431,8           346,0        24,8

Outstanding shares (million) (2)       4.439,4         3.351,0        32,5
Net Income per share                      0,10            0,10        (5,8)

(1) Including work in process.
(2) Average number of shares in the period. The figure includes capital
increases to fund the acquisition of new shareholdings in Telefonica de
Argentina, Telefonica del Peru, Telesp, Telesudeste, Endemol and ATCO,
and the issuance of new shares in respect of convertible bonds, weighted
for the number of days over which they have traded. Bonus issues charged
to reserves are excluded from calculations, as they involve no change in
the ownership structure.

Note: At the end of the period, the total number of outstanding shares
was 4,460,152,265


Telefonica,, S.A.
Full Consolidation
                                                               
'Consolidated Balance Sheet
Unaudited figures
                                                         Euros In millions
  
                                                March             %
                                          2001         2000     change
Subscribed shares not pad-in             477,3          3,1        n.s.
Long-term assets                      67.451,7     51.890,9       30,1
Start up expenses                        517,1        186,1      177,8
Intangible net assets                 19.952,3      7.156,7      178,8
Fixed net assets                      39.094,9     37.580,1        4,0
Investments                            7.963,3      6.968,0       14,3

Goodwill on consolidation              8.894,2      4.273,3       108,1
Deferred expenses                        831,0      1.269,5       (34,5)

Current assets                        16.107,1     11.096,0        45,2
Inventories                              849,5        577,6        47,1
Accounts receivable                   10.488,1      7.585,0        38,3
Short-term investments                 4.056,0      1.727,7        98,5
Cash and banks                           620,9        796,9       (22,1)
Other                                    718,6        408.7        75,8
                          
Assets = Liabilities                  93.837,2     68.532,8        36,9
Shareholders' equity                  26.052,9     14.968,2        74,1
Minority interests                     9.316,2     11.788,5       (21,0)
Badwill on consolidation                  87,5          0,0         n.s.
Deferred income                        1.565,3      1.123,6        39,3
Provisions for risks and expenses      6.695,6      6.951,2        (3,7)
Accrued taxes payable                  1.696,8      1.235,8        37,3
Long-term debt                        23.633,6     16.735,3        41,2
Short-term debt including 
 current maturities                    9.997,9      6.755,3        48,0
Interest payable                         437,0        420,3         4,0
Other creditors                       14.354,4      8.554,5        41,2
Financial Data
Consolidated net debt (1)               29.581       20,966        41,1
Consolidated debt ratio (2)             44,3%        41,9%          2,4 p.p.

   (1) Net debt: Long-term debt + Short-term debt including current
   maturities - Short-term investments - Cash and banks.

   (2) Debt ratio: Net debt /(Shareholders' equity + Minority interests +
   Deferred income + Accrued taxes payable + Net debt)


Telefonica de Espana Group

Consolidated Income Statement
Unaudited figures
                                                              Euros in millions
                                   January-March       %               December
                                2001          2000   Change                2000

Operating revenues             2.588,7      2.480,6    4,4          10.182,9
 Telefonica de Espana          2.493,7      2.353,5    6,0           9.592,9
 Others and eliminations          95,0        127,1  (25,2)            590,0
Internal expend capitalized
 in fixed assets (1)              42,9         63,2  (32,2)            236,5 
Operating expenses            (1.355,6)    (1.367,6)  (0,9)         (5.884,8)
Other operating income 
  (expense) net                  (20,3)         3,9    c.s.            (42,1)

EBITDA                          1.255,7     1.180,1    6,4           4.492,5

Depreciation and amortization    (676,7)     (743,8)  (9,0)         (2.901,2)

Operating profit                  579,0       436,3   32,7           1.591,3

Profit from associated companies    0,0         0,0    n.s.              0,1
Financial income (expense) net   (104,8)     (135,2) (22,5)           (480,9)
Amortization of goodwill           (0,1)       (0,1) (13,3)             (0,3)
Extraordinary income 
(expense) net                      51,6      (122,5)   c.s            (806,8)

Income before taxes               525,7       178,4  194,6             303,4 

Income taxes                     (143,1)      (38,7) 269,9             (59,0)

Net Income before minority 
 Interests                        382,6       139,7  173,8             244,4

Minority interests                 (0,0)       (0,1) (95,2)              0,8

Net Income                        382,6       139,6  174,0             245,2 

(1) Including works in process 
Note: TTP has been included on the accounts of Telefonica de Espana, both in
2000 and 2001. 

Note: Telefonica, Sistemas Group and TSIP are now consolidated with Telefonica
Data, both in 2000 and 2001.


Telefonica de Espana

Telefonica de Espana (individual) operating revenues
Unaudited figures
                                                          Euros in millions

                                            January-March                 %
                                            2001         2000         Change

Revenue derived from usage                  1.492,7    1.434,3         4,1
Local                                         460,0      435,7         5,6
Provincial                                    145,5      142,4         2,2
Domestic long distance                        249,7      254,9        (2.0)
International long distance (outgoing)(1)     173,5      127,0        36,6
Fixed to mobile                               375,3      356,3         5,3
Interconnection International (Incoming)       65,1       52,5        23,9
Interconnection National Operators (1)        125,6       85,5        47,0
Others                                       (102,1)     (20,1)      409,1

Monthly fee                                   816,3      742,8         9,9
Connection fee                                 64,2       66,1        (2.9)
Customer equipments                            65,2       49,7        31,2
Others (2)                                     55,2       60,6        (8,9)
Total operating revenues                    2.493,7    2.353,5         6,0

(1) Net of foreign participation 
(2) Including special services, IRIS services and others.

Telefonica de Espana
Selected Operating Data
Unaudited Figures

                                                March             %
                                            2001       2000      Change
Lines in service (thousands) (1)        20.511,9   19.510,6       5,1%
ISDN basic access                        712.830    427.832      66,6%
ISDN primary access                       14.551     10.129      43,7%
Lines in service /100 Inhabitants (1)       51.5%      49.0%      2,5p.p

ADSL connections                          88.448      4.812        n.s.
% ADSL coverage                             79,2%      34,2%     45,0 p.p
Traffic (million of minutes)              33.737     24.267      39,0%
Employees                                 41.095     46.990     -12,5%
Lines/employees (1)                        499,1      415,2      20,2%

(1) Basic telephony lines (including public telephones, Ibercom, ISDN
and connections lines with PABX)

TELEFONICA MOVILES GROUP

Combined Proforma Financial Statement
Unaudited figures

                                                            Euros in millions
                              Jan-March               %          December
                              2001          2000     Change      2000

Operating revenues           1.939,3      1.651,7      17,4      7.398,5
Internal expend capitalized
 in fixed assets (1)            16,1         13,2      22,2        137,6
Operating expenses          (1.150,0)    (1.062,6)      8,2      4.942,0
Other operating income
 (expense) net                 (54,2)       (18,2)    197,5       (145,4)

EBITDA                         751,2        584,0      28,6      2.448,6

Depreciation and amortization (304,9)      (223,7)     36,3      1.039,5

Operating profit               446,2        360,4      23,8      1.409,2

Profit from associated
 companies                     (30,4)       (12,3)    148,1        (97,0)
Financial income (expense)
 net                           (84,9)       (54,9)     54,8       (253,0)
Amortization of goodwill        (7,3)        (7,9)     (8,3)       (29,5)
Extraordinary income (expense)
 net                           (47,7)       (43,6)      9,5        (55,4)

Income before taxes            275,9        241,7      14,2        974,3

Income taxes                  (130,9)       (88,9)     47,2       (335,0)

Net income before minority
 interests                     145,0        152,8      (5,1)       639,3

Minority interests               9,4        (16,7)      c.s.       (20,6)

Net income                     154,4        136,1      13,4        618,7

Note:  Financial statements for 2000 include all the mobile telephony assets    
       held by the Telefonica Moviles Group as of 1 January, and the entire     
        stake acquired in the 2000 takeover round.

(1)  Including works in process.

TELEFONICA MOVILES GROUP

Selected Operating Data

                                             Cellular customers

                                                  % Change          Weighted
Thousands                         March 01          01/00          & Partic.(1)

T Moviles Espana                    14.246           38,9          13.192
TeleSudeste Celular                  2.602           30,0           1.975
CRT Celular                          1.543           46,3             524
TeleLeste Celular                      714           24,5              71
TCP Argentina                        1.852           51,7           1.679
T Moviles S.A.C. Peru                  921           22,9             795
TEM Guatemala                          153           96,1              72
TEM El Salvador                        237           41,8              97
NewCom Wireless Puerto Rico            170          171,6             -
Mexican operators (2)                1.032            n.s.            -
Medi Telecom                           578            n.s.            163
Telefonica Movil Chile (3)           1.295            7,5             565

Total                               25.344           45,7          19.134

(1)  Number of lines weighted for the Telefonica Group's stake in each company.

(2)  Bajacel, Movitel, Norcel and Cedetel. Management control was assumed in    
     March, though we do not consolidate those operations as a transaction      
     process has not yet been concluded.

(3)  Managed by TEM and part-owned by the Telefonica Group.

Participated companies

                                        March                         %
Thousands                               2001          2000          Change

Europe and Mediterranean area
 customers                              14.824       10.284           44,1

  Contract                               4.954        3.723           33,1
  Prepaid                                9.870        6.561           50,4

Latin America customers                  8.022        5.846           37,2

  Contract                               3.021        2.860            5,6
  Prepaid                                5.000        2.985           67,5

Total minutes                            7.984        6.945           32,1

Telefonica Moviles Espana

                                               March                  %
Thousands                               2001          2000          Change

Cellular subscribers                    14.246       10.260           38,9

  Contract                               4.922        3.721           32,3
  Prepaid                                9.324        6.539           42,6

Subscribers net adds in year to date (a)   577        1.208          (52,2)

  Contract                                 155          174          (10,9)
  Prepaid                                  422        1.034          (59,2)

TME Penetration (b)                       35,8%        25,7%          10,1 p.p.
Total airtime minutes, in millions (a)   6.080        4.579           32,8
Employees                                4.041        3.540           14,2

(a)  January-March accumulated data

(b)  Telefonica Moviles Espana cellular lines/100 inhabitants.

TELEFONICA MOVILES GROUP

Companies Financial data
Unaudited figures

                                                            Euros in millions
                                                                    
                              March                              %
                              2001           2000              Change
 
Telefonica Moviles Espana
  Operating revenues          1.299,9       1.067,1             21,8%
  EBITDA                        583,3         388,1             50,3%
  EBITDA margin                  44,9%         36,4%             8,5 p.p.

Brazilian Companies (1)
  Operating revenues            329,4         305,0              8,0%
  EBITDA                        150,5         126,7             18,8%
  EBITDA margin                  45,7%         41,5%             4,2 p.p.

TCP Argentina
  Operating revenues            191,7         175,7              9,1%
  EBITDA                         18,3          35,4            (48,3%)
  EBITDA margin                   9,5%         20,1%           (10,6 p.p.)

Telefonica Moviles Peru
  Operating revenues             68,1          60,5             12,6%
  EBITDA                         19,1          22,6            (15,5%)
  EBITDA margin                  28,1%         37,4%            (9,3 p.p.)

T.Moviles Guatemala y El Salvador
  Operating revenues             44,8          41,9              6,9%
  EBITDA                         -5,7           3,2              c.s.
  EBITDA margin                 -12,7%          7,6%             c.s.

Note:  EBITDA before management fees

(1)  TeleSudeste Celular and CRT Celular

TELEFONICA LATINOAMERICANA GROUP

Selected Operating Data
Unaudited figures

                                        March                         %
                                        2001          2000          Change

Lines in service (thousands)           20.025         17.200        16,4%
  Telesp                               11.195          8.754        27,9%
  Telefonica de Argentina               4.392          4.135         6,2%
  Telefonica CTC Chile                  2.726          2.605         4,6%
  Telefonica del Peru                   1.713          1.706         0,4%

ADSL connections                       66.372
  Telesp                               61.203            -            -
  Telefonica de Argentina               1.801            -            -
  Telefonica CTC Chile                  1.701            -            -
  Telefonica del Peru (1)               1.667            -            -

% ADSL coverage
  Telesp                                  61%            -            -
  Telefonica de Argentina                 48%            -            -
  Telefonica CTC Chile                    31%            -            -
  TElefonica del Peru                     44%            -            -

Total traffic (million of minutes)(2) 28.290         25.819          9,6%
  Telesp                              14.759         13.153         12,2%
  Telefonica de Argentina              7.455          6.279         18,7%
  Telefonica CTC Chile                 3.953          4.092         (3,4%)
  Telefonica del Peru                  2.123          2.295         (7,5%)

Employees                             34.574         36.389         (5,0%)
  Telesp                              13.312         14.166         (6,0%)
  Telefonica de Argentina              8.863          9.375         (5,5%)
  Telefonica CTC Chile                 7.437          7.813         (4,8%)
  Telefonica del Peru                  4.962          5.035         (1,4%)

Lines/Employees (3)                      651            514         26,7%
  Telesp                                 841            611         37,6%
  Telefonica de Argentina                496            441         12,5%
  Telefonica CTC Chile                   551            494         11,5%
  Telefonica del Peru                    459            350         31,1%

Note:  Data for Telefonica CTC Chile correspond to its fixed telephony and Sonda
       businesses.  Data for Telefonica de Argentina refer to the period October
       2000-December 2000.

(1)  Including the lines in service of CABLENET

(2)  Including local, DLD and ILD minutes in cumulative terms to March 01.  For 
     TASA, cumulative data as of December 00 (first quarter of the company's    
     financial year)

(3)  This ratio excludes Sonda employees in the case of Telefonica CTC Chile,   
     and Cable Magico employees in the case of Telefonica del Peru.

TELEFONICA LATINOAMERICANA GROUP

Consolidated Income Statement
Unaudited figures

                                                             Euros in millions
                           Jan-March                %          December
                           2001           2000     Change       2000

Operating revenues          2.594,7      2.297,9   12.9          9.742,7
Internal expend capitalized
 in fixed assets (1)           44,7         52,1  (14,3)           225,8
Operating expenses         (1.278,1)    (1.144,2)  11,7         (4.533,2)
Other operating income
 (expense) net                (69,8)       (42,0)  66,1           (261,5)

EBITDA                      1.291,5      1.163,8   11,0          5.173,8

Depreciation and
 amortization                (657,1)      (602,1)   9,1         (2.590,7)

Operating profit              634,4        561,8   12,9          2.583,2

Profit from associated
 companies                     (2,0)         0,6    c.s.            (7,4)
Financial income (expense)
 net                         (197,9)      (215,5)  (8,2)        (1.107,7)
Amortization of goodwill      (20,6)       (13,0)  58,1           (122,5)
Extraordinary income (expense)
 net                          (76,3)         8,7    c.s.          (331,9)

Income before taxes           337,6        342,5   (1,4)         1.013,7

Income taxes                 (121,4)       (24,1) 403,6           (155,9)

Net income before minority
 interests                    216,2        318,4  (32,1)           857,8

Minority interests            (41,7)      (238,6) (82,5)          (160,6)

Net income                    174,5         79,8  118,7            697,3

(1)  Including works in process

Note:  Financial statements for 2000 include only the fixed telephony assets of 
       the Telefonica Latinoamericana Group as of 1 January, and the entire     
       stake acquired in the 2000 takeover round.

TELEFONICA LATINOAMERICANA GROUP

Companies Financial data
Unaudited figures

                                                            Euros in millions
                              March                         %
                              2001          2000            Change

Telesp
  Operating revenues          1.106,4       901,5            22,7%
  EBITDA                        575,7       454,4            26,7%
  EBITDA margin                  52,0%       50,4%            1,6 p.p.

Telefonica de Argentina (1)
  Operating revenues            784,8       739,0             6,2%
  EBITDA                        413,2       440,6            (6,2%)
  EBITDA margin                  52,6%       59,6%           (7,0 p.p.)

Telefonica CTC Chile
  Operating revenues            354,5       373,7            (5,1%)
  EBITDA                        140,1       160,3           (12,6%)
  EBITDA margin                  39,5%       42,9%           (3,4 p.p.)

Telefonica del Peru
  Operating revenues (2)        324,3       260,5            24,5%
  EBITDA                        166,5       140,2            18,8%
  EBITDA margin                  51,3%       53,8%           (2,5 p.p.)

Note:  EBITDA before management fees

Note:  Data for Telefonica de Argentina include the ISP business of Advance,    
       while those of Telefonica CTC Chile and Telefonica del Peru include Sonda
       and CableMagico, respectively.

(1)  The data for Telefonica de Argentina refer to the period October 2000-     
     December 2000.

(2)  The March 2000 revenues stated for Telefonica del Peru are net of fixed-   
     mobile interconnection.  Including interconnection, year-on year revenues  
     growth comes to 6% in euros.  In this case, EBITDA margin for 1Q00 would be
     45,9%.

TELEFONICA DATA GROUP

Consolidated Income Statement
Unaudited figures

                                                             Euros in millions
                           Jan-March                %          December
                           2001           2000     Change       2000


Operating revenues          406,4         261,8      55,2       1.222,8
Internal expend capitalized 
 in fixed assets (1)          9,1          11,1     (18,3)         36,1
Operating expenses         (408,8)       (247,2)     65,3      (1.191,9)
Other operating income 
 (expense) net                0,6          (2,8)      c.s.         (7,3)

EBITDA                        7,2          22,8     (68,2)         59,7

Depreciation and 
 amortization               (39,8)        (21,7)     83,1         102,6

Operating profit            (32,5)          1,1       c.s.         42,8

Profit from associated
 companies                   (0,2)         (0,3)    (40,0)         (1,1)
Financial income (expense)
 net                         (6,9)         (1,0)    601,2         (10,7)
Amortization of goodwill    (20,4)         (1,2)      n.s.         (6,1)
Extraordinary income (expense)
 net                         (3,5)          0,1       c.s.        (23,7)

Income before taxes         (63,5)         (1,3)      n.s.        (84,4)

Income taxes                 (8,3)         (3,6)    130,3          10,5

Net income before minority
 interests                  (71,9)         (4,9)      n.s.        (73,9)

Minority interests           11,4           4,4     159,7          10,0

Net income                   (60,5)        (0,5)      n.s.        (63,9)

(1)  Including works in process

Note:  2000 figures have been restated to include ETI and Telefonica Sistemas,  
       which were previously part of Telefonica Intercontinental and Telefonica 
       de Espana Group respectively.  Include all the data assets of the        
       companies of Telefonica Group.

TELEFONICA MEDIA GROUP

Consolidated Income Statement
Unaudited figures

                                                               Euros in millions
                              Jan-March               %          December
                              2001          2000     Change      2000

Operating revenues            283,7         30,3     836,1        723,9

Internal expend capitalized
 in fixed assets (1)            0,0          0,0      60,0          0,3
Operating expenses           (273,4)       (36,9)    641,2       (709,0)
Other operating income
 (expense) net                  0,2         (0,1)     c.s.         (1,5)

EBITDA                         10,5         (6,6)     c.s          13,6

Depreciation and amortization (17,2)        (8,6)    100,5        (48,8)
Operating profit               (6,7)       (15,2)    (55,7)       (35,2)

Profit from associated
 companies                    (30,4)        (3,3)     816,7       (86,1)
  Antena 3 TV                   8,4         11,0      (23,3)       56,9
  Via Digital                 (33,2)       (35,3)      (5,9)     (123,4)
  Others                       (5,6)        21,0        c.s.      (19,6)

Financial income (expense) 
 net                          (21,2)        (0,1)       n.s.      (79,4)
Amortization of goodwill      (30,0)       (12,2)     146,1       (93,8)

Extraordinary income (expense)
 net                           (2,6)        (6,3)     (58,7)     (606,5)

Income before taxes           (90,9)       (37,1)     145,2      (901,1)

Income taxes                   21,7         10,6      104,7       221,5

Net income before minority
 interests                    (69,3)       (26,5)     161,4      (679,6)

Minority interests              6,0         (0,0)       c.s.       52,2
Net income                    (63,2)       (26,5)     138,5      (627,4)

(1)  Including works in process

TERRA NETWORKS GROUP

OPERATING DATA

                                             March 2001          March 2000

ISP Customers, in thousands                    7,056               2,635
Average daily page views (mill.)                 431                 201
Unique Visitors (mill.)                           99                  65

TERRA-LYCOS GROUP

Consolidated Income Statement
Unaudited figures

                                                               Euros in millions
                              Jan-March               %          December
                              2001          2000     Change      2000

               
Operating revenues             177,2        35,7     395,7       304,0
Internal expend capitalized 
 in fixed assets (1)             0,1         1,0       c.s.        1,0
Operating expenses            (246,7)      (94,7)    160,7      (649,0)
Other operating income (expense)
 net                            (7,4)       (3,0)    144,7       (15,2)

EBITDA                         (76,7)      (61,0)     26,0      (359,2)

Depreciation and amortization  (38,5)      (11,6)    231,8       (83,5)

Operating profit              (115,2)      (72,6)     58,9      (442,8)

Profit from associated
 companies                    (112,5)       (0,1)      n.s.      (59,3)
Financial income (expense)
 net                            30,0         3,6     737,8        35,8
Amortization of goodwill      (127,6)      (27,1)    370,2      (203,6)
Extraordinary income (expense)
 net                            65,5        (0,3)      c.s.     (134,3)

Income before taxes           (259,8)      (96,6)    169,4      (804,0)

Income taxes                    85,5        25,2     240,0       248,1

Net income before minority
 interests                    (174,3)      (71,3)    144,5      (555,9)

Minority interests              (0,2)        1,3       c.s.        0,7

Net income                    (174,5)      (70,0)    149,1      (555,2)

(1)  Including works in process

TPI - PAGINAS AMARILLAS GROUP

SELECTED OPERATING DATA (SPAIN)
Unaudited figures                                        Euros in millions

                              March                              %
                             2001          2000                 Var

Books (published)
  Paginas Amarillas (Yellow
                     pages)      6            3               100,0

Advertising revenues
  Paginas Amarillas (Yellow
                     pages    10,3          2,3               356,4
  Paginas Blancas (White
                   pages)       0,0         8,5                 n.s.
  Revenues On-Line              2,8         1,3               119,4
  Paginas Amarillas Habladas    0,8         0,5                48,1


TPI PAGINAS AMARILLAS 

Consolidated Income Statement
Unaudited figures

                                                               
                                                    Euros in millions
                              Jan-March                    %          
                              2001           2000          Change      
               
Operating revenues             24,4          12,7           93.1
Internal expend capitalized in
 fixed assets (1)              0,0           17,6            n.s.
Operating expenses            (32,1)        (27,6)          16,4
Other operating income 
 (expense) net                 (1,4)         (0,2)         800,0

EBITDA                         (9,0)          2,5            c.s.

Depreciation and amortization  (3,8)         (2,2)          74,7

Operating profit              (12,9)          0,4            c.s.

Profit from associated
 companies                     (0,2)          0,0            c.s.
Financial income (expense)
 net                           (4,5)          0,1            c.s.
Amortization of goodwill       (0,5)         (0,0)           n.s.
Extraordinary income (expense)
 net                            0,1           0,1           88,9

Income before taxes           (17,9)          0,5            c.s.

Income taxes                    5,4          (0,2)           c.s.

Net income before minority
 interests                    (12,6)          0,2            c.s.

Minority interests              2,3           0,1            n.s.

Net income                    (10,3)          0,3            c.s.

(1)  Including works in process


DIRECTORIES OF TELEFONICA GROUP

Consolidated Income Statement
Unaudited figures

                                                               Euros in millions

                              Jan-March               %          December
                              2001          2000     Change      2000

               
Operating revenues             51,6          59,3     (13,0)     607,7
Internal expend capitalized 
 in fixed assets (1)           (0,8)         17,6       c.s.      (1,9)
Operating expenses            (56,9)        (68,8)    (17,3)    (450,6)
Other operating income (expense)
 net                           (4,8)         (3,2)     49,5      (41,6)

EBITDA                        (10,9)          4,9       c.s.     113,7

Depreciation and amortization  (5,4)         (4,6)     16,3      (19,2)

Operating profit              (16,3)          0,3       c.s.      94,4

Profit from associated
 companies                     (0,2)         (0,0)      n.s.      (1,4)
Financial income (expense)
 net                           (5,8)         (2,5)    131,7      (11,8)
Amortization of goodwill       (0,5)         (0,0)      n.s.      (0,0)
Extraordinary income (expense)
 net                            0,0          (0,5)      c.s.      (3,6)

Income before taxes           (22,8)         (2,7)    737,2       77,6

Income taxes                    4,8          (1,4)      c.s.     (38,3)

Net income before minority
 interests                    (18,0)         (4,3)    321,6       39,4

Minority interests              2,7           1,8      52,7       15,7

Net income                    (15,3)         (2,5)    511,3       55,1

Note:  Including all Telefonica Group directories businesses as of 1 January    
      2000

(1)  Including works in process


ATENTO GROUP

Consolidated Income Statement
Unaudited figures

                                                               Euros in millions

                              Jan-March               %          December
                              2001          2000     Change      2000

               
Operating revenues             153,5         91,0      68,7       526,9
Internal expend capitalized in
 fixed assets (1)                0,0          0,0       n.s.        0,0
Operating expenses            (142,1)       (78,4)     81,2      (495,7)
Other operating income (expense)
 net                            (0,1)        (2,0)    (95,2)       (6,0)

EBITDA                          11,4         10,6       7,4        25,2

Depreciation and amortization  (16,2)        (7,9)    104,4       (51,3)

Operating profit                (4,8)         2,7       c.s.      (26,0)

Profit from associated
 companies                       0,0          0,0       n.s.        0,0
Financial income (expense)
 net                           (14,4)        (5,1)    180,1       (37,8)
Amortization of goodwill        (2,1)        (0,0)      n.s.       (7,1)
Extraordinary income (expense)
 net                            (2,1)         0,1       c.s.      (78,4)

Income before taxes            (23,4)        (2,4)      n.s.     (149,3)

Income taxes                     3,8         (0,5)      c.s.       37,3

Net income before minority
 interests                     (19,6)        (2,8)    589,9      (112,0)

Minority interests               0,4        (0,1)      c.s.        0,3

Net income                     (19,2)        (3,0)    542,3      (111,8)

(1)  Including works in process