UMTS License Awarded

Telefonica SA
7 November 2000


           TELEFONICA MOVILES WINS UMTS LICENSE IN AUSTRIA

 - The price of 117.4 million euros for two 2X5 MHz bands is one of the
   lowest paid for licenses of this type in Europe.

 - Luis Lada, executive president of Telefonica Moviles, remarked that:
   'Our success in Austria marks a step forward in the Telefonica Moviles       

   strategy for completing the European map of UMTS operators, based on taking  

   advantage of opportunities at reasonable costs.'

 - Also, today the Italian government gave final approval to the result
   of its UMTS auction, in which Telefonica Moviles also obtained a license.


Madrid, 3 November 2000. Telefonica Moviles today won a UMTS license in the
auction held in Austria, marking another step forward in its strategy of
achieving a solid position in important European markets and in their
neighboring countries, always with a view to taking advantage of opportunities
while maintaining reasonable costs.

In the first phase of the auction, in which paired spectrums were awarded,
Telefonica Moviles, through its European subsidiary Telefonica InterContinental,
obtained a license for two 2X5 MHz bands for a price of 117.4 million euros.

The Austrian government closed this phase of the auction by awarding six UMTS
licenses, with the distribution of spectrums set to come in the next phase.
Telefonica Moviles was not awarded a license in any additional non-paired
spectrum.

Luis Lada, executive president of Telefonica Moviles, remarked that; 'Our
success in Austria marks a step forward in the Telefonica Moviles strategy for
completing the European map of UMTS operators, based on taking advantage of
opportunities at reasonable costs. Our strategy turns on achieving a solid
position in the biggest European markets, accompanied by presence in their
neighboring countries. This serves to strengthen our position as one of the
world's leading mobile telephony operators.'

The price paid for the license in Austria will allow the company to roll out its
network and offer services at competitive prices for users. Telefonica Moviles
plans to cover more than half of the population during 2003, well above the
government's minimum requirement of 25% coverage.

Although Telefonica Moviles owns 100% of the license, it is open to the
possibility of new partners joining the project.

Austria's geographical and cultural proximity to Germany will allow important
cost savings and synergies in the development of products and services.

Austria has a mobile telephony penetration rate of 63.2% and Internet
penetration of 16.9% These high levels underscore the vast potential for third
generation services, in which Telefonica can leverage its position as an
integrated full-service operator to offer mobile internet services. The new UMTS
technology will allow development of the mobile Internet market, 
m-commerce and implementation of financial services and personalized information
and entertainment contents in the Austrian market.

Attainment of the UMTS license in Austria allows the Telefonica Group to bolster
its presence in this market, where Telefonica already offers fixed telephony and
data transmission services through its subsidiary European Telecom (100%
Telefonica Data). This subsidiary is concentrated on developing major Internet
users and currently has 18,000 clients, using a national voice and data
transmission network that carries 16.5 million minutes/month of traffic.
European Telecom also has a 44 km fiber ring in Vienna.

     
Final approval of Italian license
In  a related development today, the Italian government has given its definitive
approval to the result of the UMTS auction in which Telefonica Moviles,  through
its subsidiary Telefonica Intercontinental, also obtained a license. In this
auction, Telefonica Moviles, as part of the IPSE  2000  consortium, won one of
the licenses with the broadest frequency band.
          
Telefonica Moviles plans to bid in other tenders and auctions in Europe,  the
Mediterranean Basin and Latin America in order to broaden its customer base as
part of the group's transatlantic consolidation.
          
Telefonica Moviles is the leading mobile communications services operator in
Spain and Latin America and one of the top ten worldwide.  The Telefonica 
Moviles group provides services to more than 21 million customers and holds 
licenses and concessions covering more than 350 million inhabitants.

     
These materials  contain  certain forward-looking statements within the
meaning of  the United States Private Securities Litigation Reform Act of
1995, including, but not limited to: The ability of Telefonica Moviles and
that of the Telefonica SA to capitalize on their positions as telecommunications
providers in Austria; the ability of Telefonica Moviles
to offer services at competitive prices; the  ability of Telefonica Moviles  to
timely build-out  the  UMTS network, the ability of  Telefonica  Moviles  to
cover more than half of the Austrian population by 2003; the ability  of
Telefonica Moviles to achieve cost savings and  synergies;  and expected    
participation of Telefonica Moviles in auctions for other UMTS licenses.    
Forward-looking statements may also be identified by words such as  'believes', 
'expects',  'anticipates',  'projects',  'intends',  'should',  'seeks',
'estimates', 'future' or similar expressions.
          
The forward-looking statements included in these materials are based on current
expectations, but actual results may differ materially from anticipated future
results due to various factors, many of which are beyond the control of
Telefonica, S.A. and its subsidiaries. Certain factors which could cause the
actual results of Telefonica, S.A. and its subsidiaries to differ materially 
from the expected results include,  among others: failure to receive any 
required approvals or consents;  inability to participate in other UMTS
auctions; inability to timely build-out the UMTS network, and increased
competition and its effect on  pricing,  spending, third party relationships and
revenues.

     
ATTENTION:  This press release shall not constitute an offer to sell, or
the solicitation of an offer to buy, any securities in the United States
or any other jurisdiction. Telefonica Moviles has filed to register its
shares with the United States Securities and Exchange Commission, but     
registration is not yet effective. Telefonica Moviles securities cannot be
sold  and  offers  to purchase said securities cannot be  accepted in the
United  States  until  registration with the United States Securities and
Exchange  Commission is effective. Any securities offering in the United States
will be carried out pursuant to a prospectus that will be available from the
underwriters and contain detailed information on the company, management
and financial statements.