Debentures Redemption

Telefonica SA
28 September 2004

TELEFONICA, S.A., in accordance with that stated in article 82 of the Spanish
Stock Market Act (Ley del Mercado de Valores) hereby announces the following:



On October 20th, 2004 and in compliance with the conditions stated in the
Prospectus for the Debentures Issue 'October 2004 C' (ISIN code number
ES0278430907), registered with the Spanish National Securities Market Commission
(Comision Nacional del Mercado de Valores) on September 30th, 1993, will be
totally redeemed the 115,200 debentures of the issue through the repayment of
the 50% of their unsettled nominal value of Euros 600.01 each.



                                                    Madrid, September 28th, 2004



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