Director Shareholding

Telefonica SA
20 October 2000


                 TELEFONICA RETRIBUTIVE SCHEME 'PLAN TOP'

Telefonica, S.A., in accordance with that stated in Royal Decree 1370/2000 of
July 19th  and  that set forth in the Circular Letter 4/2000 of August 2nd of 
the  Spanish Securities  Market Commission ('CNMV'), has presented information
regarding  the retributive  scheme introduced by Telefonica S.A. for a certain
number  of  its management  members throughout the Group, which comes under the
name  'Plan Top', consists of the apportioning of options on Company shares.

The  specific  information  on  each and every one  of  the management  members
included in the scheme is outlined below:

1.  Luis Lada Diaz, Fiscal Identification Number 11,039,753-Y, member of the 
Board,  holds 77,970 type A options and 77,970 type  B  options,  which
together represent 0.943% of the total number of share options that make up  the
'Plan TOP'.

2.  Jose  Maria Mas Millet, Fiscal Identification Number 22,619,261-A, member 
of  the  Board, holds 77,970 type A options and 77,970 type  B  options,
which  together represent 0.943% of the total number of share options that  make
 up the 'Plan TOP'.

3.  Antonio  Viana-Baptista, Passport Number 5033173,  member  of  the  Board, 
holds  77,970 type A options and 77,970 type B options, which  together
represent  0.943% of the total number of share options that make up  the  'Plan
TOP'.

4.  Jose  Maria  Alvarez-Pallete Lopez, Fiscal  Identification  Number
50,705,869-T,  General Manager, holds 77,970 type A options and  77,970  type  B
 options,  which together represent 0.943% of the total number of  share 
options that make up the 'Plan TOP'.

5.  Francisco  de  Bergia  Gonzalez,  Fiscal  Identification   Number
251,291-Q  General  Manager,  holds 45,270 type A  options  and  45,270  type  B
options,  which together represent 0.547% of the total number of  share  options
 that make up the 'Plan TOP'.

6.  Guillermo   Fernandez   Vidal, Fiscal Identification Number 35,941,672-D, 
Deputy General Manager, holds 77,970 type A  options  and  77,970 type  B 
options, which together represent 0.943% of the total number of  share
options that make up the 'Plan TOP'.

7.  Rafael Hernandez Garcia, Fiscal Identification Number 51,313,901-G,
Deputy  General  Manager, holds 77,970 type A options and 77,970 type  B 
options, which  together represent 0.943% of the total number of share options
that  make up the 'Plan TOP'.

8.  Julio  Linares Lopez, Fiscal Identification Number 13,030,793-M Deputy
General Manager,  holds  77,970  type  A  options and 77,970  type  B  options,
which  together  represent 0.943% of the total number of share options that 
make  up  the 'Plan TOP'.

9.  Oscar  Maraver Sanchez-Valdepenas, Fiscal Identification Number
50,273,422-E, General  Manager, holds 45,270 type A options and 45,270 type B
options,  which together  represent 0.547% of the total number of share options
that  make up  the 'Plan TOP'.

10.  Juan  Jose  Nieto Bueso, Fiscal Identification Number 21,468,439-0,  Deputy
 General  Manager, holds 77,970 type A options and 77,970 type B options,  which
 together  represent 0.943% of the total number of share options that  make  up
the 'Plan TOP'.

11.  Angel  Vila Boix, Fiscal Identification Number 37,371,616, General Manager,
 holds  77,970  type  A  options  and 77,970 type  B  options,  which  together 
represent  0.943% of the total number of share options that make up the  'Plan 
TOP'.

The  current  exercise  price  of  the  type  A  options,  which  entitle  the
participant to acquire one Company share, stands at EUR 15.0912.

The  current  exercise  price  of  the  type  B  options,  which  entitle  the
participant to acquire one Company share, stands at EUR 22.6343.

Madrid, October 18th 2000