Stmnt re Press Comment

Telefonica SA
21 November 2000



                              A SIGNIFICANT EVENT

'TELEFONICA, S.A.', in accordance with that stated in article 82 of the Spanish
Stock Market Law, hereby announces the following:

In relation with the news that has appeared in a particular newspaper, regarding
a possible company operation between Terra Networks, S.A. and TPI-Paginas
Amarillas, S.A. both controlled by Telefonica, S.A., the Company would like to
underline the following points:

     a.  The report by Lehman Brothers to which this article refers is not in
         itself a report but is simply one of the numerous presentations that,  
         unilaterally and with no previous request made by the Company, are     
         prepared by investment banks within the normal course of the promotion 
         of their services.

     b.  The above-mentioned presentation has not, to date, been analysed by    
         any corporate body with any power of decision regarding the two        
         companies mentioned.  Should this be the case, the CNMV would be       
         informed immediately.