Issue of Debt

Telefonica SA
07 February 2003




TELEFONICA, S.A. has registered with the Spanish Comision Nacional del
Mercado de Valores information regarding a future offering of debt securities
with the following characteristics:



Issuer     :     Telefonica Europe, BV fully guaranteed by Telefonica, S.A.

Amount     :     Approximately 1.5 billion Euro

Offering Type     :     EMTN documentation

Tranches     :     Approximately 10 years

Currency     :     Euro

Rating     :     A3 (Stable) Moody's/ A (Stable) S&P / A (Stable) Fitch-IBCA

Listing     :     London

Use of Proceeds     :     General Corporate purposes : Extension of average debt
maturity




A hard copy of the full presentation is available at UKLA- Financial Services
Authority






Madrid, February 7, 2003




This announcement is not an offer of securities for sale in the United States or
any other jurisdiction. Any offering of securities to be made in the United
States will be made only by means of a prospectus that may be obtained from
Telefonica and that will contain detailed information about Telefonica and its
management, as well as financial statements. Telefonica does not intend to
register the securities for sale in the United States. Copies of this
announcement are not being, and should not be, distributed in or sent into the
United States.





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