Result of Meeting

Telefonica SA
26 October 2000


'TELEFONICA, S.A.', in accordance with that stated in article 82 of the Spanish
Stock Market Law and that set forth in the Circular Letter 14/1998 of the
Spanish Securities Commission of December 28th, 1998, hereby announces the
following:

                         SIGNIFICANT EVENT

The Board of Directors of 'Telefonica, S.A.', at its meeting held today, have
agreed to name the Board member Pedro Luis Uriarte Santamarina, Vice-Chairman of
the Company, as well as appointing as members of the Standing Committee, the
Directors Maximino Carpio Garcia and Jose Maldonado Ramos, in order to cover the
vacancies left by the outgoing members.

Likewise, the Board of Directors has resolved to assign 175,000 type A options
and 175,000 type B options, which form part of the retributive scheme of the
options on Company shares, 'Plan TOP', - the specific prospectus for which was
verified and recorded in the official registers of this same Commission on April
18th, 2000 - to the Company's Chairman and Chief Executive Cesar Alierta Izuel,
and 125,000 type A options and 125,000 type B options to the Director and Chief
Operating Officer Fernando Abril-Martorel Hernandez.

The price of the exercising of these options will be as follows:  the type A
options may be exercised at the price corresponding to the trading price of the
'Telefonica, S.A.' share on the Automated Quotation System at the close of
trading yesterday, October 24th, 2000 (Euros 22.69 each); the type B options may
be exercised at the price corresponding to 135% of the aforementioned trading
price (Euros 30.63 each).

Madrid, October 25th, 2000