Cash dividend payment

Telefonica SA
26 October 2005

Telefonica S.A., in accordance with that stated in article 82 of the Spanish
Stock Market Act (Ley del Mercado de Valores), hereby





NOTIFIES





Pursuant to the resolution adopted by the shareholders of 'Telefonica, S.A.' at
their Annual General Meeting of May 31st, 2005, we hereby inform all
shareholders that on November 11th, 2005 the Company will pay the cash dividend
from the Additional Paid-in capital reserve of a fixed amount of 0.27 euros for
each Company share  in circulation and carrying entitlement to this dividend
(Record Date: Thursday, November 10 th, 2005).





The payment of this dividend shall be executed on the aforesaid date November
11th, 2005 by Banco Bilbao Vizcaya Argentaria, S.A., through the participating
entities in Iberclear (Sociedad de Gestion de los Sistemas de Registro,
Compensacion y Liquidacion de Valores, S.A.), the Spanish securities registrar,
clearing and settlement company.







Madrid, October 26th, 2005


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