Acquisition

Telefonica SA
9 August 2000


             ENDEMOL ENTERTAINMENT ACQUIRES FULL OWNERSHIP OF 
                   GMG ENDEMOL IN AGREEMENT WITH
                       GUARDIAN MEDIA GROUP

Hilversum/London/Madrid, 9 August 2000 - ENDEMOL Entertainment Holding N.V.,
the content production affiliate of the Telefonica Group, has bought the
Guardian Media Group's 50% stake in GMG ENDEMOL Entertainment, one of the UK's
largest independent television production groups. The acquisition brings
ENDEMOL's ownership of the company to 100%.

ENDEMOL first bought into the company in 1998 when it took a 50% stake in what
was previously called Broadcast Communications and wholly owned by the Guardian
Media Group. The agreement gave ENDEMOL the option to increase its stake over
time.

The United Kingdom is considered by ENDEMOL to be one of the five key European
markets for further growth because of its size and its capacity to develop new
formats. Acquiring full ownership of ENDEMOL Entertainment UK plc, as GMG
ENDEMOL will be renamed, is therefore an important strategic step for the
company. The group will retain its current management structure under the
consolidated ownership.

ENDEMOL Entertainment UK is one of UK's largest independent television
production groups and is the creative force behind international television hits
such as Big Brother, Changing Rooms, Ground Force, Ready Steady Cook, The Brit
Awards, Miss World and The Pepsi Chart. Its programs and formats have sold in
over one hundred countries.

The group has two programming divisions, Bazal - the UK's largest independent
producer of factual entertainment; and Initial -the UK's leading producer of
music and live event programming. Gem is the company's third arm, dedicated to
the full exploitation of rights and brands.

ENDEMOL Entertainment UK also recently acquired a 50% stake in award winning
digital media company, Victoria Real and a 25% stake in online and TV comedy
content production company, Zeppotron.com. The company produces over 1,000 hours
of programmes for all the UK's terrestrial networks, as well as for satellite
and cable. Annual company sales exceed £40 million.

Telefonica, S.A. recently concluded its acquisition of ENDEMOL Entertainment,
one of the most successful independent television producers worldwide. ENDEMOL
will provide content for the Telefonica Group's broadcasting companies as well
as for Internet, third generation mobile telephones and other distribution
platforms.

Telefonica is one of the largest telecommunications groups in the world, with
operations or investments in 24 countries and more than 62 million customers
in Europe, Latin America and Africa. The companies in the Telefonica Group
offer a complete range of telecoms services, including fixed and mobile
telephony, Internet, access, data transmission, directories, broadcast media and
content production.