Result of AGM

Telefonica SA
18 June 2001

                    OUTCOME OF TELEFONICA'S ANNUAL 
                    GENERAL SHAREHOLDER'S MEETING


'Telefonica, S.A.', in accordance with that stated in article 82 of the Stock
Market Law, by way of this document would like to announce the following
significant event.

The Annual General Shareholders' Meeting of 'Telefonica,S.A.', at its meeting
held today at second call - with the attendance of the holders of 1,775,010,753
shares, which were either present or represented, constituting 39.016 per cent
of the Company's share capital, approved by a sufficient majority of votes - in
all cases 97 per cent of the shares present or represented at the Meeting placed
votes in favour - all the proposals that the Board of Directors had resolved to
submit for consideration and approval by the Meeting, these being the thirteen
points that made up the Agenda of the aforementioned Meeting. These proposals
had already been announced on May 23rd of this year, by way of a complete copy
of the text, along with the obligatory documentation and reports.

                                                           Madrid,June 15th 2001