Memo. of Understanding Signed

Telefonica SA
4 October 2000

                     TELEFONICA CONFIRMS MoU WITH MOTOROLA

In accordance with the news that has today appeared in the media Telefonica,
S.A. confirms that it has effectively signed a memorandum of understanding with
Motorola, Inc. aimed at the acquisition by Telefonica Moviles, and in view of
the latter's intention to shortly be floated on the stock markets, of all the
participations held by Motorola in several Mexican cellular operators, to be
precise, those that operate in the Northern area of the country.

This acquisition is subject to the outcome of the Due Diligence on these assets
that is currently underway, and the agreeing of the final terms of this
acquisition which is foreseen to take place within the next two weeks.