Cellular CRT Offer Cancelled

Telefonica SA
14 September 2001

14/09/2001

                  TELEFONICA MOVILES CANCELS PUBLIC EXCHANGE 
                   OFFER TO ACQUIRE SHARES OF CELULAR CRT 
                                PARTICIPACOES

Madrid, 14 September, 2001 - Telefonica Moviles, S.A. today announced its 
decision to cancel the public exchange offer formulated last February 27 to 
acquire the shares representing up to 100% of the share capital of the Brazilian
company Celular CRT Participacoes S.A., which owns all the share capital of the 
operator Celular CRT.

This exceptional events of recent days have caused a significant change in the 
normal functioning of international capital markets. The current market 
volatility puts the efficient execution of the transaction at risk, making it 
advisable to cancel the offer.

Telefonica Moviles maintains its commitment to the region, given the excellent 
results of its Brazilian operators and the potential of the Joint Venture with 
Portugal Telecom.