Bond redemption

Telefonica SA
11 October 2002




                            ANTONIO J. ALONSO UREBA

                          Director, General Secretary

                    and Secretary of the Board of Directors

                              TELEFONICA, S.A.





TELEFONICA, S.A., in accordance with that stated in article 82 of the Spanish
Stock Market Law hereby announces the following:




On November 17th, 2002 and in compliance with the conditions stated in the
Prospectus for the Bond Issue 'November 2002 C' (ISIN code number ES0278430865),
registered with the Spanish National Securities Commission on October 22nd,
1992, the 193,154 bonds of the issue will be totally redeemed through the
repayment of the 100% of their nominal value of Euros 601.01 each.








                                                      Madrid, October 11th, 2002





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