Divestiture in Endemol

Telefonica SA
03 July 2007



Further to the information filed on May 14, 2007 (RNS No. 5318W), TELEFONICA,
S.A., as provided in article 82 of the Spanish Stock Market Act (Ley del Mercado
de Valores), hereby reports the following





                               SIGNIFICANT EVENT



Pursuant to the share purchase agreement dated May 14, 2007, and once the
corresponding administrative authorisations have been obtained, TELEFONICA,
S.A. has sold its 99.7% stake in ENDEMOL INVESTMENT HOLDING BV to EDAM
ACQUISITION BV, an entity equally participated by MEDIACINCO CARTERA SL, CYRTE
FUND II B.V. and GS CAPITAL PARTNERS FUND, LP.  As already disclosed, the total
price of the sale has been Euro 2,629.6 million.



Madrid, July 3, 2007








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