Result of second Tender Offer

RNS Number : 4111L

Telefonica SA

09 January 2009

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

NOTICE

Further to the information released on November 3rd, 2008 and in accordance with Chilean law requirements, TELEFÓNICA, through its wholly- owned subsidiary INVERSIONES TELEFÓNICA INTERNACIONAL HOLDING, LTDA., launched on December 1st, 2008 a second Tender Offer ('second Offer') to acquire the shares of COMPAÑÍA DE TELECOMUNICACIONES DE CHILE, S.A. ('CTC') not already owned by TELEFÓNICA (representing 3.25% of CTC's total share capital).

Upon completion of the acceptance period of the second Offer, TELEFÓNICA's indirect ownership in CTC's share capital has increased from 96.75% of the total outstanding shares of CTC, reached as a result of the initial Tender Offer, to 97.89%.