1st Half Results Further Data

Telefonica SA
12 September 2002

                           JOAQUIN DE FUENTES BARDAJI

                                General Vicesecretary

          and Vicesecretary of the Board of Directors


                                TELEFONICA S.A.


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


                                SIGNIFICANT EVENT


In accordance with the requirement set forth by the Spanish National Securities
Commission, and in order to provide further information on the results
corresponding to the first half of 2002, published by the Company on July 24th,
the following announcement is made:

During the first half of fiscal year 2002 the depreciation of the Argentine peso
against the dollar (-73.7%) from 1 dollar per 1.7 pesos ( 1 euro per 1.5149
pesos) to 1 dollar per 3.8 pesos (1 euro per 3.4084 pesos) has had a negative
effect on financial results in addition to that recorded in the 2001 results.

In the individual profit and loss statement of Telefonica, S.A. as of June 30,
this negative effect amounts to 1,052.42 million euros (604.16 million euros as
of March 2002) as a consequence of the provisions for diminuation in value for
Argentine investments.The Group's consolidated financial results as of June 30,
2002 reflected a negative effect of 445.7 million euros (254.4 million euros as
of March, 2002) and lower reserves for translation differences in consolidation
of 1,068.71 million euros (838.6 million euros as of March 2002)

                                                    Madrid, September 12th, 2002


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