2nd quarterly results part 2

Telefonica SA
27 July 2006



RESULTS BY BUSINESS LINES

Others Business

CONTENT AND MEDIA BUSINESS

The Content and Media business reported revenues of 775.1 million euros at the
end of the first half of 2006, 28.8% higher than for the same period last year.
This increase reflects the positive trends in results posted by all business
lines.

During the period from January through June, consolidated operating income
before interest, depreciation and amortization (OIBDA) increased to 222.5
million euros, compared with 114.1 million euros for the same period in 2005.
This substantial growth in 2006 was primarily attributable to the gain on the
sale by the Telefonica Group of a part of Sogecable stake in the takeover bid
launched by the Prisa Group.

ENDEMOL NV

Endemol enjoyed a strong overall performance in the first half of 2006,
recording a 22.6% growth in revenues, reaching a level of 516.6 million euros.
The company registered revenues growth in every business line, compared to the
same period of last year. Growth in Non-scripted came in at 24.1% and Scripted
grew by 3.7%. Digital Media registered a very sound performance as well in the
first semester, growing by 38.2%.

Organic growth accounted for the vast majority of total growth, with a 21.1% out
of the 22.6%. This organic development is mainly due to the strong performance
of Endemol's operating companies in the UK, the US, and Italy. While Big Brother
remained the top format with very sound ratings worldwide, the performance of
Deal or no Deal was especially remarkable, triggering an increasing appetite for
game shows, one of the core elements of Endemol's product portfolio. This
increasing demand was leveraged by closing a number of deals in various
territories on other game shows such as 'One vs 100', 'Show me the Money' and
'For the Rest of your Life'.


EBITDA in the first half year of 2006 reached a level of 87.2 million euros, a
13.6% increase compared to last year, when it amounted to 76.8 million euros. In
terms of EBITDA margin, Endemol has moved from 18.2% of turnover in June 2005 to
16.9% in June 2006. If non recurring items in the turnover and costs are
excluded in both years, EBITDA would have reached a level of 99.1 million euros
(19.2% margin) compared to 71.6 million euros (17.3% margin) in the first year
of 2005.

ATCO

In the first half of the year, the advertising market in Argentina (in the
Capital and Greater Buenos Aires regions) saw an 8% increase over the same
period last year. This figure is in sharp contrast to the 25% increase reported
for the first half of 2005, which reflected the recovery that this market
experienced during 2004 and 2005.

In this market situation, Telefe maintained its leadership position, with 40.1%
of the total audience in the first half of 2006, compared with 38.8% during the
same period last year, followed by Canal 13, its main rival, which had an
average audience share of 29.3%. Telefe's accumulated market share in the first
half of 2006 was 42.1%, the same as in 2005, once again followed by Canal 13
with 37.7%.

Thus, ATCO reported an improvement in financial results over the previous year,
thanks to the growth in the advertising market, which enabled it to increase
advertising sales in the Greater Buenos Aires area, and to the positive audience
results, which also allowed it to increase sales on the broadcasting networks it
owns in the Inland Provinces. Elsewhere, international proprietary content sales
exceeded those during the same period last year by almost 75%, which contributed
to an improvement in the channel's results.



CONTENT AND MEDIA BUSINESS
CONSOLIDATED INCOME STATEMENT
Unaudited figures (Euros in millions)
                                   January - June            April - June

                                  2006    2005  % Chg      2006    2005  % Chg
Revenues                         775.1   601.9   28.8     426.1   335.3   27.1
Internal expenditure               0.3     0.0   n.s.       0.3     0.0   n.s.
capitalized in fixed assets (1)
Operating expenses             (700.2) (497.1)   40.9   (401.0) (268.2)   49.5
Other net operating income         4.7     2.1  126.1      30.1     1.3   n.s.
(expense)
Gain (loss) on sale of fixed     142.7     7.3   n.s.       0.4     0.2   68.4
assets
Impairment of goodwill and       (0.1)   (0.1)   62.3     (0.1)   (0.1)  115.5
other assets
Operating income before D&A      222.5   114.1   95.0      55.7    68.7 (18.8)
(OIBDA)
Depreciation and amortization   (13.9)  (14.1)  (1.5)     (7.0)   (6.8)    3.1
Operating income (OI)            208.6   100.0  108.7      48.8    61.9 (21.2)
Profit from associated           (8.0)   (7.6)    5.4     (0.5)     1.2   c.s.
companies
Net financial income (expense)  (51.1)     3.2   c.s.    (29.5)     0.4   c.s.
Income before taxes              149.5    95.6   56.3      18.8    63.4 (70.4)
Income taxes                    (10.5)  (35.2) (70.1)     (9.6)  (22.2) (56.5)
Income from continuing           138.9    60.5  129.8       9.1    41.3 (77.9)
operations
Income (Loss) from                 0.0     0.0   n.s.       0.0     0.0   n.s.
discontinued operations
Minority interest               (14.6)   (2.6)   n.s.     (7.2)   (2.3)   n.s.
Net income                       124.4    57.9  114.9       1.9    39.0 (95.2)

(1) Including work in process.



ADDENDA

Companies included in each Financial Statement

Based on what was indicated at the start of this report, the results breakdown
of Telefonica Group are detailed according to the business in which the Group
has a presence. The main differences between this view and the one that would
apply attending to the legal structure, are the following

• Telefonica O2 Europe Group includes O2 Group results from February 1st
2006, and Telefonica O2 Czech Republic and Telefonica Deutschland results from
January 1st 2006. Telefonica Group 69.4% stake in Telefonica O2 Czech Republic
is legally dependent upon Telefonica S.A. In the case of Telefonica Deutschland,
the company is a 100% dependent upon Telefonica Data Corp, S.A.

• Telefonica, S.A. directly participates in the share capital of Endemol
Entertainment Holding, N.V., which has been included in Content and Media
Business. The results from the Sogecable S.A. stake have been also assigned to
Content and Media Business, including the portal divestiture that took place in
the first quarter, even though a part of the investment is legally dependent
upon Telefonica, S.A.

• Telefonica Holding Argentina, S.A. holds 6.98% a minority stake of
Atlantida de Comunicaciones, S.A. (ATCO) which, for those purposes, is
considered to be part of Telefonica de Contenidos, consolidating 100% share
capital of ATCO in the Content and Media Business.

• The participation of Telefonica Group in IPSE 2000 SpA is assigned to
the cellular business, also including the investment legally dependent upon
Telefonica DataCorp, S.A.

• Telefonica de Argentina (TASA), participated by Telefonica
Latinoamerica Group, sold in November 2005 its 100% stake in Telinver, S.A.
share capital to TPI Group. Nevertheless, the results from this company has been
assigned to the directories business through 2005 in line with our vision for
the total Telefonica's directories business.

• Telefonica Data Group (denominated 'Telefonica Empresas'), legally
dependent upon Telefonica S.A., has been segregated and subsequently integrated
into the fixed line activities in Latin America for presentation purposes, and
according to geographic criteria.

• Telefonica International Wholesale Services Group (TIWS) financial
results has been assigned to Telefonica Latinoamerica Group, even though is
legally dependent upon Telefonica, S.A. (92.5%) and Telefonica Data Corp (7.5%).

• The activities of Terra Networks Espana S.A., Maptel Networks, S.A.U.
and Azeler Automocion, S.A. have been included in Telefonica de Espana Group. As
of June 30th 2006, Terra Networks Espana is directly held by Telefonica S.A.,
while Maptel Networks and Azeler Automocion are directly held by Terra Networks
Asociadas, S.L.

• Latin American companies formerly dependent upon Terra Group have been
legally transferred to Telefonica International, S.A. during the second half of
2005, although the results have been assigned to Telefonica Latinoamerica Group
from the beginning of 2005.


ADDENDA

Key Holdings of the Telefonica Group and its Subsidiaries detailed by business
lines

TELEFONICA GROUP                       TELEFONICA DE ESPANA GROUP
                              % Part                                 % Part

Telefonica de Espana          100,00   Telyco                        100,00
Telefonica Moviles (1)         92,50   Telefonica Telecomunic.       100,00
                                       Publicas
Telefonica Latinoamerica      100,00   Telefonica Soluciones         100,00
                                       Sectoriales
TPI Group                      59,90   Telefonica Empresas Espana    100,00
Telefonica de Contenidos      100,00   Terra Networks Espana (1)     100,00
Atento Group                   91,35   T. Soluciones de Informatica  100,00
                                       y
Telefonica O2 Europe          100,00   Comunicaciones de Espana

(1) Effective participation:           (1) Telefonica S.A. owns
92.92%.                                100%.

                                       TELEFONICA MOVILES GROUP
                                                                     % Part
TELEFONICA LATINOAMERICA
GROUP
                              % Part
                                       Telefonica Moviles Espana     100,00
                                       Brasilcel (1)                  50,00
Telesp                         87,49   TCP Argentina                 100,00
Telefonica del Peru (1)        98,19   T. Moviles Peru                98,40
Telefonica de Argentina        98,03   T. Moviles Mexico             100,00
TLD Puerto Rico                98,00   TM Chile                      100,00
Telefonica Chile (2)           44,89   T. Moviles El Salvador         99,06
Terra Networks Peru            99,99   T. Moviles Guatemala          100,00
Terra Networks Mexico          99,99   Telcel (Venezuela)            100,00
Terra Networks USA            100,00   T. Moviles Colombia           100,00
Terra Networks Guatemala      100,00   Otecel (Ecuador)              100,00
Terra Networks Venezuela      100,00   T. Moviles Panama              99,99
Terra Networks Brasil         100,00   T. Moviles Uruguay            100,00
Terra Networks Argentina       99,99   Telefonia Celular Nicaragua   100,00
Terra Networks Chile          100,00   Radiocomunicac. Moviles SA    100,00
                                       (Arg)
Terra Networks Colombia        99,99   Telefonica Moviles Chile      100,00
Telefonica Data Colombia      100,00   Group 3G (Germany)             57,20
Telefonica Empresas Brasil     93,98   IPSE 2000 (Italy) (2)          45,59
Telefonica Data Argentina      97,92   3G Mobile AG (Switzerland)    100,00
Telefonica Data USA           100,00   Medi Telecom                   32,18
T. Intern. Wholesale Serv.    100,00   Mobipay Espana                 13,36
(TIWS) (3)
                                       Mobipay Internacional          50,00
                                       T. Moviles Soluciones y       100,00
                                       Aplicac. (Chile)
(1) Telefonica Empresas Peru has been  Tempos 21                      43,68
absorbed by T.del Peru as of May 1st
2006.
(2) CTC has changed its
name.
(1) Telefonica, S.A. owns 92.51% y
Telefonica DataCorp owns 7.49%.
                                       (1) Joint Venture which fully
                                       consolidates Telergipe Celular,
                                       S.A., Telebahia Celular, S.A.,
                                       Telest Celular, Telerj Celular,
                                       Celular CRT, Global Telecom, Telesp
                                       Celular and TeleCentro Oeste Part.,
                                       S.A. through participation at Vivo
                                       Participacoes (62.77%).
                                       (2) Additionally, Telefonica Group
                                       holds a 4.08% of IPSE 2000 through
                                       Telefonica DataCorp.




TPI - PAGINAS AMARILLAS                TELEFONICA O2 EUROPE
GROUP
                              % Part                                 % Part

TPI Edita                     100,00   O2 UK                         100,00
Publiguias (Chile)            100,00   O2 Gemany                     100,00
TPI Brasil                    100,00   O2 Ireland                    100,00
TPI Peru                      100,00   Manx                          100,00
Teleinver (Argentina)         100,00   Airwave                       100,00
11888 Servicios de Consulta   100,00   Be                            100,00
Telefonica
Services de Renseig. T.       100,00   Telefonica O2 Czech Republic   69,41
(France)                               (1)
Servizio di Consultazione     100,00   Telefonica Deutschland (2)    100,00
Telefonica,
S.R.L. (Italy)

                                       (1) Company owned through Telefonica
                                       S.A.
                                       (2) Telefonica S.A. owns 100%
                                       through Telefonica DataCorp.


ATENTO GROUP
                              % Part

Atento Teleservicios Espana,  100,00
S.A.
Atento Brasil, S.A.           100,00
Atento Argentina, S.A.        100,00
Atento de Guatemala, S.A.     100,00
Atento Mexicana, S.A. de      100,00
C.V.
Woknal (Uruguay)              100,00
Atento Peru, S.A.C.            99,46   OTHER PARTICIPATIONS
Atento Chile, S.A.             77,95                                 % Part
Atento Maroc, S.A.            100,00
Atento El Salvador, S.A. de   100,00
C.V.
                                       Lycos Europe                   32,10
                                       Sogecable (1)                  16,80
                                       Portugal Telecom (2)            9,84
                                       China Netcom Group (3)          5,00
                                       BBVA                            1,07
                                       Amper                           6,10
                                       Telepizza                       4,33

                                       (1) Telefonica de Contenidos, S.A.
                                       holds 15.67% and Telefonica, S.A.
                                       holds 1.13%.
TELEFONICA DE CONTENIDOS               (2) Telefonica Group's effective
GROUP                                  participation. Telefonica Group
                                       participation would be 9.96% if we
                                       exclude the minority interests.
                              % Part   (3) Ownership held by Telefonica
                                       Latinoamerica

Telefe                        100,00
Endemol (1)                    99,70
Telefonica Servicios de       100,00
Musica
Telefonica Servicios          100,00
Audiovisuales
Hispasat                       13,23

(1) Ownership held by Telefonica S.A. Endemol Holding NV is the parent
company of Endemol Group and owns 75% of Endemol NV, company quoted in the
Amsterdam Stock Exchange.






ADDENDA

Significant Events

• On 26 July 2006, the Board of Directors of Telefonica S.A approved
plans to adapt the Company's management structure to a new regional and
integrated management model.

This view has led to the creation of three Regional Business Units: Telefonica
Spain, Telefonica Europe and Telefonica Latin America) in charge of the
integrated business, i.e. both fixed and mobile assets. The Divisions will be
managed as follows:

Antonio Viana-Baptista has been appointed General Manager of Telefonica Espana.

Jose Maria Alvarez-Pallete has been appointed General Manager of Telefonica
Latinoamerica.

Peter Erskine, appointed General Manager of Telefonica O2 Europa.

• On 26 July 2006, the Board of Directors of Telefonica, S.A., accepted
the resignation of Mr. Luis Lada Diaz from his position on the Board (also
member of the Service Quality and Customer Service Committee).

Likewise, the Board agreed, preceded by the relevant favourable report from the
Nominating, Compensation and Corporate Governance Committee, the appointment of
Mr. Jose Maria Alvarez-Pallete Lopez as executive Director.

• On July 4th, 2006, once the legal timeframe provided for presenting
counterbids elapsed and the Board of Directors of TPI issued its report in
favour of the transaction on Tuesday, 27 June, Telefonica S.A. accepted the
Public Tender Offer launched by Yell Group Plc for TPI (Euro8.50 for every TPI
share tendered), tendering its 216,269,764 TPI shares, representing 59.905% of
the company's share capital. By transfering all its shares to Yell, Telefonica
will receive 1,838 million euros, which equates to account for net capital gains
of 1,577 million euros.

• On June 20th and 21th 2006, the approval of the merger and takeover of
Telefonica Moviles, S.A. by Telefonica, S.A. at the companies' respective
shareholders meetings.

The merger includes an exchange ratio of four Telefonica shares for every five
Telefonica Moviles shares and the payment of two special cash dividends of
E0.435 per share. These dividends, which were paid on 21 July, coupled with the
approved E0.205 dividend paid out of 2005 profit leave a total gross dividend of
E0.64 per share.

It is likewise placed on the record that, in compliance with article 14 of the
Regulations of the Company Board of Directors, in the Annual General
Shareholders' Meeting of Telefonica, S.A., Mr. Mario Eduardo Vazquez has given
up his directorship.

• On May 26th, 2006, Telefonica announced that it has set as a strategic
target for the year 2009 to double both earnings per share and dividend per
share from the 0.91 euros and 0.50 euros reported for 2005.

Moreover, the Chairman of Telefonica will submit to the Board of Directors a
proposal to pay an interim dividend of 0.30 euros per share from 2006 profits,
to be paid in November 2006. This payment will be followed by an additional 0.30
euros per share to be paid in the first semester of 2007.

Finally, and until the end of 2007, the Company has decided to set a limit of
1.5 billion euros and a commitment not to issue new shares to execute net new
acquisitions over those already announced. Shares to be acquired to complete the
current buyback program will be cancelled.


ADDENDA

Changes to the Perimeter and Accounting Criteria of Consolidation

In the period January-June of 2006, the main changes have occurred in the
consolidation perimeter were the following

TELEFONICA GROUP

• On the 31st of October 2006, Telefonica, S.A. announced a Binding
Offer for the purchase of all the shares in the UK company O2 plc. Once the
Binding Offer ended and the procedure began for the mandatory sale of O2 shares
according to the UK Law, by June Telefonica held 100% of the shares forming the
capital of this company that, as of 7th March this year, were no longer listed
on the London Stock Exchange. The acquisition cost for the buyout of O2 Group
was 26,127.71 million euros (17,882.37 million sterling pounds). Telefonica
Group financial statements include the results from O2 Group since February 1st,
2006. The company has been included in the consolidation perimeter of the
Telefonica Group using the full integration method.

• The subsidiary company Comet, Compania Espanola de Tecnologia, S.A.,
made a capital increase of 0.23 million euros in February this year through an
increase in the par value of existing shares. In March Comet made another
capital increase. Both were fully subscribed and paid up by its sole shareholder
Telefonica. The company continues to be included in the consolidation perimeter
of the Telefonica Group using the full integration method.


TELEFONICA DE ESPANA GROUP

• In February, the Spanish company Telefonica Cable, S.A. acquired 15%
of the share capital of Telefonica Cable Galicia, S.A. Through this purchase,
Telefonica Cable became the sole shareholder of the company. The company
continues to be included in the consolidation perimeter of the Telefonica Group
using the full integration method.

• In June, Telefonica Cable, S.A. took over its subsidiary company
Sociedad General de Cablevision Canarias, S.A.U. Following this operation, the
company taken over was removed from the Telefonica Group perimeter of
consolidation in which it was included using the full integration method.

• The Spanish companies Barcelona Emprend, S.A., Barcelona Ventures,
S.G.E.C.R., Foment Ciutat Vella and Euroinfomarket, S.A. have been included in
the perimeter of consolidation of the Telefonica Group using the equity method.


TELEFONICA LATINOAMERICA GROUP

• The Brazilian company Santo Genovese Participacoes Ltda., a holding
company that owned all of the capital stock of the Brazilian Atrium
Telecomunicacoes Ltda., was liquidated during the first quarter of 2006 after
taking over its subsidiary Atrium. Both companies, which were included in the
consolidated accounts of the Telefonica Group using the full integration method,
have been removed from the consolidation perimeter.

• In April, Telefonica Internacional, S.A. purchased 50% plus one share
in the Colombian company Colombia de Telecomunicaciones, S.A. ESP by tender for
289 million euros. The company has been included in the perimeter of
consolidation of the Telefonica Group using the full integration method.

• Telefonica del Peru, S.A.A. took over its subsidiary Telefonica
Empresas Peru, S.A.A. in June. The company, which was included in the financial
statements of the Telefonica Group using the full integration method, has been
removed from the perimeter of consolidation.

• The Mexican companies Katalyx Mexico S.A. de C.V. and Telefonica
Empresas Mexico S.A. de C.V., wholly-owned subsidiaries of the Telefonica
Internacional Group, were sold in 2006. Both companies, which were included in
the financial accounts of the Telefonica Group using the full integration
method, have been removed from the perimeter of consolidation.


TELEFONICA MOVILES GROUP

• On the 22nd of February 2006, the Shareholders' Meetings of Telesp
Celular Participacoes S.A. ('TCP'), Tele Centro Oeste Celular Participacoes
S.A., ('TCO'), Tele Sudeste Celular Participacoes S.A. ('TSD'), Tele Leste
Celular Participacoes, S.A. ('TBE') and Celular CRT Participacoes S.A.
('CRTPart') approved corporate restructuring in order to exchange TCO shares for
TCP shares to become a wholly-owned TCP subsidiary and the take-over of TSD, TBE
and CRT Part by TCP.

• In June 2006 VIVO Paticipacoes made a capital increase by asset
contribution for a total of 194 million reais. Once the capital increase was
completed, Brasilcel, N.V. stake in VIVO Participacoes stood at 62.77%.

• In June 2006 Telefonica Moviles Group increased its participation in
Telefonica Moviles Peru (TMP), from 98.03% to 98.40%, through the buyout of
minorities. The company continues to be included in the consolidation perimeter
of the Telefonica Group using the full integration method.


TELEFONICA O2 EUROPE

• During the first half of the year, the Czech company Eurotel Praha,
spol. s r.o. (Eurotel) was taken over by its parent company Telefonica O2 Czech
Republic, a.s. to give the new integrated operator Telefonica O2 Czech Republic,
a.s.. Following this operation, Eurotel, which was included in the financial
statements of the Telefonica Group using the full integration method, was
removed from the perimeter of consolidation.

• In June, O2 UK Ltd. purchased 100% of the British internet service
provider Be Un Limited (Be). The operation involved a total payment of 50
million pounds sterling (approximately 73.5 million euros). Be is now included
in the perimeter of consolidation using the full integration method.


ATENTO GROUP

• In May, Atento Chile Holding purchased the percentage shareholding of
Publiguias Chile in Atento Chile, S.A. Following this operation, the
shareholding of the Atento Group in Atento Chile increased from 69.99% to
71.16%. The company continues to be included in the perimeter of consolidation
of the Telefonica Group using the full integration method.

• In June, Atento, N.V. purchased the 100% shareholding in the Uruguayan
company Woknal, S.A., with an initial share capital of 0.4 million uruguayan
pesos, around 0.01 million euros. The company has been included in the financial
statements of the Telefonica Group by the full integration method.


TELEFONICA CONTENIDOS GROUP

• In March, Prisa launched a partial take-over bid for the 20% of
Sogecable, S.A. The Telefonica Group sold shares representative of 6.57% of the
company's share capital, reducing its stake from 23.83% to 17.26%. Later in
March, Sogecable made a capital increase although without Telefonica Group
taking part, thus diluting its stake in the company's share capital to the
present 16.84%. In April, Sogecable once again increased its capital to cover
the options plans for company directors, executives and managers and turned
Class B and series B2005 callable shares into ordinary Class A shares, leading
to another decrease in the Telefonica Group shareholding, currently standing at
16.80%. Telefonica Group continues consolidating Sogecable into the financial
statements by the equity method.

• The Telefonica de Contenidos Group sold all of its shares held in the
Argentine company Patagonik Film Group, S.A. in May 2006. The company, which was
included in the financial statements of the Telefonica Group using the equity
method, has been removed from the perimeter of consolidation.

• Andalucia Digital Multimedia, S.A. made a capital increase with the
participation of Telefonica de Contenidos, S.A., which subscribed enough shares
to enable it to increase its shareholding to 24.20%. The company continues to be
included in the consolidation perimeter of the Telefonica Group using the full
integration method.


TPI GROUP

• In July Telefonica has decided to accept Yell Group Plc bid for 100%
of TPI. By accepting the Public Tender Offer, Telefonica is complying with its
commitment to accept Yell's bid, made in an agreement signed on 28 April,
pursuant to which the Company, in its capacity as controlling shareholder of
TPI, is transferring all its shares to Yell, that is, 216,269,764 TPI shares,
equivalent to 59.905% of the company's share capital.

As a consequence of the former, in the Telefonica Group consolidated financial
statements as of June 2006, the results from TPI Group are under the caption
'Income (loss) from discontinued operations'. Moreover, and for comparison
purposes, the Telefonica Group financial statements for 2005 have been restated
to present TPI Group results under the same caption.


DISCLAIMER

This document contains statements that constitute forward looking statements in
its general meaning and within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements appear in a number of places in this
document and include statements regarding the intent, belief or current
expectations of the customer base, estimates regarding future growth in the
different business lines and the global business, market share, financial
results and other aspects of the activity and situation relating to the Company.
The forward-looking statements in this document can be identified, in some
instances, by the use of words such as 'expects', 'anticipates', 'intends',
'believes', and similar language or the negative thereof or by forward-looking
nature of discussions of strategy, plans or intentions.

Such forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and other important factors that could cause
actual developments or results to differ materially from those expressed in our
forward looking statements.

Analysts and investors are cautioned not to place undue reliance on those
forward looking statements which speak only as of the date of this presentation.
Telefonica undertakes no obligation to release publicly the results of any
revisions to these forward looking statements which may be made to reflect
events and circumstances after the date of this presentation, including, without
limitation, changes in Telefonica's business or acquisition strategy or to
reflect the occurrence of unanticipated events. Analysts and investors are
encouraged to consult the Company's Annual Report as well as periodic filings
filed with the relevant Securities Markets Regulators, and in particular with
the Spanish Market Regulator.

The financial information contained in this document has been prepared under
International Financial Reporting Standards (IFRS). This financial information
is unaudited and, therefore, is subject to potential future modifications.



                      For additional information, please contact.
                                               Investor Relations
                                               Gran Via, 28 - 28013 Madrid (Spain)
                                               Phone number:
                                               [phone]
                                               Fax number:
                                               [phone]
                                               Email address:
                                               Ezequiel Nieto - [e-mail]
                                               Diego Maus - [e-mail]                                        
                                               Dolores Garcia - [e-mail]
                                               Isabel Beltran - i.beltran@telefonica.e
                                               [e-mail]
                                               www.telefonica.es/accionistaseinversores


                      This information is provided by RNS
            The company news service from the London Stock Exchange