Stake increase in Publiguias

Telefonica SA
24 February 2004

PRESS RELEASE

24/02/2004



TPI, A SUBSIDIARY OF TELEFONICA, S.A., REACHES AN AGREEMENT TO INCREASE ITS
STAKE IN PUBLIGUIAS TO 91%



  • The TPI Group has signed an agreement to buy out a 40% stake in Publiguias
    to the minority shareholders Editorial Lord Cochrane and Impresiones Cuenca
    Uno & Impresiones Cuenca Dos.

  • The transaction is worth USD65.6mn and will be financed with debt

  • This acquisition tightens TPI's control over its Chilean subsidiary and
    underlines its confidence in the capacity for growth and development of the
    Chilean directories market



Madrid, 24 February 2004.- The TPI Group, leader of the Spanish and Portuguese
speaking directories market, has reached an agreement to acquire a 40% stake in
Publiguias to its minority shareholders Editorial Lord Cochrane (20.4%) and
Impresiones Cuenca Uno & Impresiones Cuenca Dos (19.6%), for USD65.6mn.


As a result of this acquisition, the TPI group, that already holds 51% in
'Impresora y Comercial Publiguias S.A.' since December 2000, will end up
controlling 91%. This acquisition will be carried out in the next two months.


The deal tightens TPI's control over its Chilean subsidiary and underlines its
confidence in the capacity for growth and development of the Chilean directories
market.


Publiguias is the leader of the Chilean directories market with over 29 years'
experience and a market share of 98%. The company has more than 56,000 clients
and a broad and diversified product portfolio including published products
(Yellow and White Pages), internet products and telephone information services.
In 2003, a total of 10 Yellow and White Pages directories where published and
more than 6 million copies were distributed.


In 2003, Publiguias obtained Euros 74.89mn in revenues, a year over year
increase in local currency of 5.8%. Also, EBITDA amounted to Euros 27.3 mn, an
advance of 10.1% in local currency, and the EBITDA margin improved by 1.4
percentage points vs. 2002 to 36.5%.


About TPI


TPI has consolidated its position as a global advertising group in Spain and
Latin America. Leader of the Spanish-Portuguese speaking directories market, it
is present in Spain, Brazil, Chile and Peru. In 2003, the TPI group obtained a
Net Income of Euros 90.06 mn, growth of 19.4%. Revenues increased 7.1% (8.9% in
local currency) to Euros 570.83 mn compared to 2002, while EBITDA grew 19.6%
(19.3% in local currency) to Euros 179.58 mn.


Para mas informacion / For further information

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