Telefonica's holding in TPI

Telefonica SA
28 February 2006







Telefonica S.A., as provided in article 82 of the Spanish Stock Market Act (Ley
del Mercado de Valores), hereby reports the following





SIGNIFICANT EVENT





The Board of Directors of Telefonica, S.A., at its meeting on today's date,
resolved to explore strategic alternatives in relation to Telefonica's holding
in the share capital of Telefonica Publicidad e Informacion, S.A. (TPI),
including total or partial disinvestment  in that company (sale). Telefonica,
S.A. will to that end contact persons potentially interested in the acquisition
of that holding.







Madrid, February 28th, 2006.














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