Radio companies- future sale

Telefonica SA
18 November 2004


                            ANTONIO J. ALONSO UREBA
                          Director, General Secretary
                    and Secretary to the Board of Directors
                              TELEFONICA, S.A.

Telefonica, S.A., as provided in article 82 of the Spanish Stock Market Act (Ley
del Mercado de Valores), hereby

REPORTS

As part of the strategy to divest certain media assets previously announced by
the Telefonica Group, Grupo ATCO, a subsidiary of Telefonica de Contenidos,
S.A., has reached an agreement in principle over the future sale of Radio
Continental and Radio Estereo, radio operating companies of the Telefonica Group
in Argentina, to Grupo Latino de Radio and Corporacion Argentina de
Radiodifusion, companies in the PRISA Group. The two parties hope to close the
contract to implement the transaction soon, subject to administrative approval
from the Argentine authorities.

Madrid, November 18th, 2004.



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