Result of Meeting

Telefonica SA
17 November 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:

                               A SIGNIFICANT EVENT

Telefonica would like to inform the market that it yesterday held its  habitual
multi-conference on the results for the third quarter (now registered  with  the
CNMV),  during  which,  besides commenting on these results  with  analysts and
investors, the following points were underlined:


Segregation of Business Lines

The  Telefonica Group will continue to develop its activity through segregated
business  lines as this is considered to be the most efficient way of  achieving
the commercial and financial targets set for each of its activities.

This  form  of  management has been facilitated by the  recent  success  of  the
Veronica Operation.

Likewise, this will also assist in increasing the degree of transparency in  the
supervising of management.


Floatings

Once the floating of Telefonica's mobile subsidiary has concluded, the Company
does  not  foresee any specific dates for the floating of any other  subsidiary.
The  market  will  be  informed of these dates as soon as they  have  been  set,
although this is not expected to occur before the second half of next year.

The  Telefonica Group will constantly consider the possibility of listing shares
on additional stock markets, although this, at all times, will be subject to the
market's correct valuation of the different business lines.


Telefonica Media

The  Telefonica  Group  also presented Telefonica  Media's  strategic
plan.  This  plan stresses the structuring of Telefonica  Media  in  three
business units: open TV and radio, Content, and pay TV.

As  a consequence of this new structure, the Telefonica Group's media
holding  will introduce a greater degree of coherence in the management  of
these  assets, with a mind to consolidating its position as a leading group
in  the  audiovisual sector, placing particular emphasis on the  importance
of   the   future  convergence  between  telecommunications,  content   and
internet.

Financing

Telefonica  also  announced that once the financing  operations  have
been  satisfactorily concluded, through both the launching of a global bond
issue  and  a  syndicate loan, the financing needs for the year  2001  will
have been covered.

The  Company  went  on to state that it intends to  apply  the  funds
derived from the floating of its mobile subsidiary, shortly to take  place,
to the reduction of indebtedness.

Madrid, November 17th, 2000.