Reduction ofStake inVodafone

Banco Santander Central Hispano SA
3 July 2001



                               MATERIAL EVENT



The Santander Central Hispano Group has reduced its stake in VODAFONE from 2,71%
to 1,62%, realizing capital gains of Pta. 269,505 million. The net proceeds of
this operation will be assigned to the amortization of goodwill.


Madrid, July 3, 2001