Further re Cesky Telecom

Telefonica SA
06 April 2005



                            RAMIRO SANCHEZ DE LERIN
                             General Vice Secretary
                  and Vice Secretary to the Board of Directors
                              TELEFONICA, S.A.

Further to the notification on March 31st,  2005 filed under RNS No. 4094K,
Telefonica S.A., as provided in article 82 of the Spanish Securities Market Act
(Ley del Mercado de Valores) hereby reports the following

SIGNIFICANT EVENT

As part of the privatisation of listed Czech company Cesky Telecom a.s., the
government of the Czech Republic publicly announced in official information
today that the bid submitted by Telefonica S.A. has won the tender for acquiring
51.1% of equity in the company. The Czech government thus adhered to the
non-binding recommendation made on March 30th by the Privatisation Committee
formed for this process.

After the decision adopted today by the Czech cabinet, implementation of the
operation remains subject to fulfilment of various contractual terms, including
the corresponding approval of European competition authorities. Telefonica S.A.
considers that in normal circumstances the acquisition could be implemented in
the third quarter of 2005.

The acquisition by Telefonica S.A. of 51.1% of equity in Cesky Telecom a.s.
implies a public offer being made subsequently to purchase the remaining 48.9%
of company equity.

Madrid, April 6th, 2005



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