Re Directorate

Telefonica SA
21 December 2000




      TELEFONICA'S BOARD OF DIRECTORS APPOINTS TWO INDEPENDENT MEMBERS


-  Luiz Fernando Furlan of Brazil and the Mario Vazquez of Argentina will
   join the Telefonica board.

Madrid, 20 December, 2000 - The Board of Directors of Telefonica at its meeting
today appointed two independent members, Mario Vazquez and Luiz Fernando Furlan,
both well-known business leaders in Argentina and Brazil. The appointments
reinforce Telefonica's commitment to Latin America

These designations take place shortly after the culmination of 'Operacion
Veronica'  which has enabled Telefonica to take majority control of three
operating companies in the two countries and has incorporated more than half a
million Latin American investors to Telefonica's shareholder base.

Luiz Fernando Furlan, aged 54, is currently president of Sadia, one of Brazil's
leading food processing companies, with annual revenues of $1.8 billion dollars,
Mr. Furlan is also vice president of the Sao Paulo employers' association
(FIESP, Federation of Industries and Companies) and a member of the advisory
councils of multinationals in Brazil such as IBM Latin America and ABN Amro
Bank. In addition, he is chairman of the Forum of Mercosur Leaders and a member
of the advisory board of the World Economic Forum and the International Board of
INSEAD.

Mario Eduardo Vazquez, public accountant and economist, has spent most of his
professional career as head of Arthur Andersen in Argentina. He had a
distinguished role as a consultant in Argentina's process of privatization,
liberalization of the economy and government reform. As a consequence of his
participation in these processes, he has been named legal adviser to YPF S.A.
(Repsol) and a director of Central Puerto S.A., in Argentina.  Mr. Vazquez is
also a member of the boards of several international companies with a presence
in Argentina.

Today's appointments fill the vacancies left on Telefonica's Board of Directors
by the departure of Bert Roberts, chairman of the board of Worldcom, and the
resignation of Martin Velasco. Since he was named a member of Telefonica's
Board of Directors in 1998, Mr. Roberts' contribution has been very valuable for
the company, thanks to his long experience in the open, competitive and
developed North American market.

Martin Velasco joined the Telefonica board in January 1997 as in independent
director. His contribution to the international development of the company has
been remarkable, especially in the New Technologies sector. He has also had an
outstanding role as an adviser to high technology companies around the world and
he was named one of the most dynamic European businessmen in the sector by the
Wall Street journal in 1999 and by Business Week in 2000. Mr. Velasco has
expressed his wish to continue collaborating with the Company in issues related
to telecommunications, Internet and e-commerce.

For further information

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