Statement re CRT

Telefonica SA
21 June 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 Brazilian National Agency for Telecommunications (ANATEL), the organism
responsible for regulating telecommunications in Brazil, yesterday agreed to
intervene in the activities of the Compania Riograndense de Telecomunicaciones
(CRT), a subsidiary of Telefonica Internacional.

This intervention, which aims to preserve the regime of competition and the
efficient management of the company's businesses, will mean the suspension of
the voting rights of all the the company's shareholders (the voting rights of
TBS, the company through which Telefonica Internacional controls CRT, have
already been suspended).

Telefonica therefore believes that this measure will result in an prompt
agreement between Telefonica and TeleCentro Sul regarding the sale of
Telefonica's stake in CRT, which has been imposed by the authorities due to the
regulations in force.

'Telefonica, S.A.' is as always, at the entire disposal of the Spanish
Securities Commission to provide any further information that may be required.