TPI control 100%of Publiguias

Telefonica SA
25 March 2004

PRESS RELEASE

23/03/2004

TELEFONICA PUBLICIDAD E INFORMACION (TPI), A SUBSIDIARY OF TELEFONICA,
S.A., TO CONTROL 100% OF PUBLIGUIAS AFTER REACHING AN AGREEMENT WITH
TELEFONICA CTC


  • The TPI Group has reached an agreement to acquire Telefonica CTC of
    Chile's 9% stake in Publiguias for USD 14.7 million


Madrid, March 23rd, 2004.- The TPI Group, leader of the Spanish and Portuguese
language directories market, has reached an agreement to acquire Telefonica
CTC's 9% stake in Publiguias for USD 14.7 million.


Since December 2000, the Group owned 51% of 'Impresora y Comercial Publiguias
S.A.'. On February 23rd, it reached an agreement to acquire for USD 65.6 million
the 40% held until then by the company's minority shareholders, Editorial Lord
Cochrane (20.4%) and Impresiones Cuenca Uno e Impresiones Cuenca Dos (19.6%).
The agreement was carried out on March 16th.


With the latest operation, the TPI Group will control 100% of Publiguias. The
transaction should be completed within a period of approximately two months.


Publiguias, the leader in the yellow pages directory sector in Chile, boasts
more than 29 years of experience in the sector and currently enjoys a 98% market
share. With more than 56,000 customers, the company has a broad and diversified
product portfolio including published products (Yellow and White Pages),
internet products and telephone information services. In 2003, Publiguias
published 10 Yellow Pages and White Directories, printing over six million
copies.


The company obtained Euros 74.89 million in revenues, an increase of 5.8% in
local currency from the year before. EBITDA increased 10.1% in local currency to
Euros 27.3 million1. The EBITDA margin improved 1.4 p.p. from 2002 to 36.5% of
revenues.


About TPI


TPI has consolidated its position as a global advertising group in Spain and
Latin America It is the largest Spanish and Portuguese directories group, with
operations in Spain, Brazil, Chile and Peru. In 2003, the TPI Group recorded net
profit of Euros 90.06 million, 19.4% higher than in 2002. Operating revenues
rose 7.1% (8.9% at constant exchange rates) to Euros 570.83 million. Group
EBITDA advanced 19.6% (19.3% in constant euros) to Euros 179.58 million.


For more information

Telefonica Publicidad e Informacion

Communications Office

Tel: [phone]

[e-mail]


(1) Average peso/euro exchange rate from January to December 2003 =671.14


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