Directorate Change

Telefonica SA
26 September 2003







TELEFONICA STREAMLINES ITS ORGANIZATIONAL STRUCTURE


Fernando Abril-Martorell to discontinue his executive functions


  • The process of restructuring the group and shedding assets and businesses
    has concluded


  • The model seeks to adapt to the new management situation with a more
    simplified approach






Having culminated the process of restructuring the Telefonica Group and shedding
various assets and business, and with the aim of adapting to the new situation
and streamlined management areas, the Board of Directors has approved a new
organizational model for the Company.


The key parts of the organizational transformation are:


Simplification of business lines by including the corporate business (Telefonica
Data) in the Fixed Telephony business in Spain and Latin America, and
disappearance of Admira.


Concentration of the corporate structure by bringing the Management Planning and
Control area under the Strategy area, and Resources under Corporate Finance.


Under this streamlined structure the Chairman will now handle all executive
functions directly, upon the disappearance of the position of Chief Operating
Officer. As a result, Fernando Abril-Martorell, the current COO, will
discontinue his executive functions as from October 1 and will stay on as
advisor to the Chairman.


The Board of Directors wishes to thank Fernando Abril-Martorell for his work and
dedication, as well as for his invaluable contribution to the notable
development achieved by the Telefonica Group during the last seven years.




                                                      Madrid, September 24, 2003



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