Issue of Equity
Telefonica SA
28 November 2000
'LAUNCHING OF THE FIRST CAPITAL INCREASE CORRESPONDING TO THE STOCK OPTIONS
PROGRAMME FOR THE TELEFONICA GROUP'S EMPLOYEES, WHICH COMES UNDER THE NAME THE
'TIES PROGRAMME'.
The Annual General Shareholders' meeting of 'Telefonica, S.A.', held on April
7th, 2000, resolved to execute two capital increases, for respective amounts of
Euros 1,197,880 and Euros 31,504,244, with no pre-emptive rights in favour of
existing shareholders, aimed at addressing the needs derived from the drawing up
of a retribution scheme linked to the trading price of the Company's shares,
with the subscription to its shares and the entitlement to options on its
shares, coming under the name the 'TIES Programme', aimed at non-management
personnel belonging to the Telefonica Group.
Following the agreement approved by the Board of Directors of 'Telefonica, S.A.'
in order to execute that resolved by the General Annual Shareholders' Meeting,
and subsequent to the verification by the Spanish National Securities Market
Commission, on November 16th, 2000, of the corresponding Prospectus, the
subscription period for the new shares to be issued, as a consequence of the
first of the aforementioned capital increases, will begin in Spain today,
Tuesday, November 28th and will last for two months.
As has been previously mentioned, the capital increase will take place through
the issuance of up to 1,197,800 new ordinary 'Telefonica, S.A.' shares, of the
same class and series as those currently outstanding, of a nominal value of one
euro each and an issue premium of four euros, which results in a issue rate of
five euros.
The new shares to be issued will exclude pre-emptive rights in favour of the
Company's existing shareholders, in such a way that these shares may only be
subscribed by 'Telefonica, S.A.' employees and those of its Spanish and foreign
subsidiaries in which the Company holds majority voting rights, neither may the
new shareholders be participants in any other share or options Programme with
similar characteristics. Those employees that subscribe the new shares will only
be obliged to pay, in cash, the issue price of these (five euros per share).
An Annex is attached which provides a breakdown of the companies that make up
the Telefonica Group, and whose employees will therefore be entitled to
participate in the 'TIES Programme'.
This communication shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there he any sale of securities in any jurisdiction
in which such offer, solicitation or sale would he unlawful prior to
registration or qualification under the securities laws of such jurisdiction.
COMPANIES INCLUDED IN TIES PROGRAMME
Telefonica, S.A.
Telefonica Servicios de Distribucion, S.A.U (AERIS)
Seguros de Vida y Pensiones ANTARES, S.A.
PLEYADE Peninsular Correduria de Seguros del Grupo Telefonica, S.A.
FONDITEL Entidad Gestora de Fondos de Pensiones, S.A.
Telefonica Finanzas, S.A.
Telefonica Consultora de Servicios, S.A. (TCS)
Telefonica Investigacion y Desarrollo, S.A. (TIDSA)
Telefonica Ingenieria de Seguridad, S.A. (TIS)
Telefonica Procesos y Tecnologia de la Informacion, S.A. (TPTI)
Venturini Espana, S.A.
Fundacion Telefonica
Telefonica de Espana, S.A.
Asociacion Telefonica Asistencia Minusvalidos (ATAM)
Playa de Madrid, S.A.
Teleinformatica y Comunicaciones, S.A. (TSIG)
Telefonica Telecomunicaciones Publicas, S.A. (TTP)
Telefonica Soluciones Sectoriales, S.A. (TSS)
Telefonica Internacional, S.A.
Telefonica Internacional USA Inc. (Miami)
TLD Puerto Rico
Telefonica Media, S.A.
Uniprex, S.A. (Onda Cero)
Servicios de Teledistribucion, S.A. (ST Hilo)
Telefonica Servicios Audiovisuales, S.A. (TSA)
Factoria de Contenidos Digitales, S.A. (Art Media)
Telefonica Media Internacional y de Contenidos USA, Inc. (Miami)
Telefonica Data Espana, S.A.
Telefonica Data Uruguay, S.A.
Telefonica Data do Brasil
Telefonica Data, SA
European Telecom
Telefonica del Peru S.A.
Telefonica Multimedia del Peru
Telefonica Servicios Comerciales del Peru, S.A.C.
Telefonica Servicios Financieros del Peru, S.A.C.
Telefonica Servicios Internet del Peru, S.A.C.
Transporte Urgente de Mensajeria del Peru, S.A.C. (TUMSAC)
Telefonica Servicios Audiovisuales del Peru, S.A.C.
Telefonica Sistemas del Peru, S,A.C.
Telefonica Ingenieria de Seguridad del Peru, S.A.C.
Telefonica Servicios Digitales del Peru
Telecomunicacoes de Sao Paulo, S.A. (Telesp, Brasil)
Assit Telefonica, S.A.
Emergia Brasil, Ltda.
Ceterp
Telefonica de Argentina, S.A.
Tyssa, Telecomunicaciones y Sistemas, S.A. (Argentina)
Telinver, S.A. (Argentina)
Atento Argentina, S.A.
Advance Telecomunicaciones, S.A. (Argentina)
e- Marketplace
Atento Telecomunicaciones Espana S.A.
Atento Holding Telecomunicaciones, S.A.
Atento de Puerto Rico, Inc
Atento Marruecos
Atento Chile
Atento Centroamerica de Guatemala
Atento USA, Inc (Miami)
Atento Brasil, S.A.
Atento Colombia, S.A.
Teleatento del Peru, S.A.C.
Tempotel, Empresa de Trabajo Temporal, S.A.
Gestion de Servicios de Emergencia y Atencion al Ciudadano, S.A. (G.S.E.)
Final updating: 22/11/00