Statement re. Press Comment

Telefonica SA
15 September 2005


                      Madrid, September 15th, 2005 

Telefonica, S A (the 'Company')

In response to the request of the Panel on Takeovers and Mergers, the Company
notes the recent press reports concerning its acquisition strategy and possible
acquisition targets (including 02 plc) following the responses of Mr Alierta,
the Chairman of Telefonica S A, to various questions after the
telecommunications businesses integration conference held at the Summer
University of Santander on 05 September 2005.

The comments regarding 02 plc were of a general nature and related to the
profile of companies which would add value to the Company. Telefonica S A has 
not commented on and does not wish to comment on the possibility of acquiring 
any particular potential target or targets in Europe or elsewhere.

The Company is also pleased to announce that it continues to be interested by
the opportunities in South America, notably in Colombia, in the fixed line
operation domestic companies, and that such opportunities are now being 
analysed.


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