Stmnt re Press Comment

Telefonica SA
10 April 2001

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

                        SIGNIFICANT EVENT

Regarding the article published today in a national daily newspaper about a
supposed exchange of assets between Telefonica Media and Bertelsmann, Telefonica
wishes to point out the following:

1. There are no negotiations or conversations with the Bertelsmann Group
regarding its entry into the share capital of Telefonica Media.

2. At present, the relations between Telefonica and Bertelsmann are limited to
the participations both Groups hold in Lycos Europe (Telefonica, through
Terra-Lycos) and to the advertising contract signed by Bertelsmann in the
benefit of Terra-Lycos.

3. Telefonica Data has recently concluded with Bertelsmann the acquisition of
Bertelsmann's subsidiary for Internet services for business, Mediaways. This
agreement, was announced in the past by both Groups.


                                                       Madrid, April 9, 2001