Doc re. Merger Prospectus F-4

Telefonica SA
09 May 2005



               TELEFONICA, S. A. AND TERRA NETWORKS MERGER PLAN


Telefonica, S.A., in its capacity as the acquiring company, has filed with the
Securities and Exchange Commission (SEC), the US stock market regulator , the
final registration form F-4 in relation to its announced takeover of Terra
Networks, S.A.. This document has been declared effective by the SEC on April
22nd, 2005.

Two copies of the above form F-4 have been submitted to the UKLA and will
shortly be available at the UKLA's Document Viewing Facility which is situated
at:

Financial Service Authority

25 The North Colonnade

Canary Wharf

London

E14 5HS

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            The company news service from the London Stock Exchange