Final Results - Part 2

Telefonica SA
27 February 2001




PART 2


TELEFONICA DATA GROUP

The main features in 2000 were the consolidation of Telefonica Datacorp's 
international presence, the creation of the bases to enable corporate services 
to move up the value chain (corporates are Telefonica DataCorp's natural
clients) and the signing of significant strategic agreements with clients both
at home and abroad.

As for international expansion, substantial progress was made in separating the 
data business of the Telefonica group's operators in Brazil (Sao Paulo),
Argentina and Peru in the last quarter of 2000, under the framework of the 
Veronica project.  Some of the operations required the separation and transfer  
the newly-carved out companies to the Telefonica Data group which will be
carried out in the first half of 2001. As of 2000, the operators involved in the
Veronica project were not consolidated in Telefonica Data group results,
although they are already working as if part of the group and receiving active 
support in achieving their business objectives in the area of corporate data and
valued added services.

In addition, investment in the creation and consolidation of the international
network has continued.  This will act as a base from 2001 for all international 
data services provided by Telefonica group companies, including international
Internet access services.  Traffic carried by the international network at the
end of the year was 1 Gbps.

Inherent to the Telefonica DataCorp services strategy is the substantial
progress made in setting up Telefonica Data Internet Centres (TICs), which are
bases for offering value added services (web hosting, applications and
e-commerce platforms). In December 2000,  TIC's in Madrid, Miami, Sao Paulo,
Buenos Aires and Lima were already in operations.

In the commercial side, a strategic agreement was sealed in December with 
America Online Inc, the world leader in interactive services.  Under the
agreement, Telefonica DataCorp will provide network services (national switched
access and international network capacity) to the main America Online companies
in the key markets of Latin America and Europe.

In October, an agreement was signed with BSCH to manage the banking group's 
international network, which covers more than 20 countries in Europe and Latin
America. Approximately EUR 6.4 million will be invested in the project over the
next three years. Telefonica DataCorp has also obtained contracts for Repsol's 
international network and BBVA's international back-up network.

From an operational standpoint the total number of group connections now stands
at 415,444, of which 194,636 (47%) are switched IP accesses.  These percentages 
are expected to increase further as migration from traditional technologies to
IP technologies gathers pace.

Turning now to the Telefonica Data group's Spanish subsidiary, most noteworthy
was its InfoNegocio.com service, which had more than 370,000 users in December
2000, 8.5 times the December 1999 number.

Telefonica Data Espana's IP network carried 1.65 billion minutes of internet 
traffic per month in 2000, equivalent to year on year growth of more than 100%.
Meanwhile, 43,108 ADSL accesses to Telefonica Data Espana's IP network were
installed in 2000.

Overall, Telefonica DataCorp's 2000 results show revenues of EUR 920.2 million 
(+20.8% increase over 1999), recorded in Spain, Colombia, Mexico, Uruguay,
Austria and Italy, and an EBITDA of EUR 44.8 million (4.9% EBITDA margin).

The integration of subsidiaries that are still in their start-up phases and 
other items which, although they have yet to generate any income, are
significantly affecting circuit leasing costs (such as the international
network), impacted the EBITDA. The most important factors include:

1. Consolidation by the global integration method of ACEA and Telexis added EUR
43.5 million to group revenues, which implies a negative EBITDA contribution of
EUR 11.6 million.

2. European Telecom International in Austria made a negative consolidated EBITDA
contribution of EUR 9.9 million.

3. Considerable efforts have been made to deploy the international network and 
to lease the necessary circuits, which should feed through to revenues in 2001.
However, during 2000 the contribution to the EBITDA of the Group is EUR -39
million.

Had these extraordinary circumstances not occurred, Telefonica Datacorp's EBITDA
would have been EUR 97.2 million.

Telefonica Data Espana, reached EUR 717.8 million revenues, a 24% increase over
1999 and an EBITDA of EUR 116.9 million, almost flat over 1999. It is worth to
mention as well that revenues from its Frame Relay services were up 37.3%
compared to 1999, while its IP services revenues were up 146.3%.

Higher circuit leasing costs, which account for 48.2% of Telefonica Data
Espana's revenues, higher marketing costs (+61.1% on the previous year) due to 
the launch of new large-scale services aimed at SMEs, support for the direct
sales network in the launch of new services, intensive advertising campaigns and
promotional activities specifically for the ADSL service, and the 32.2% Increase
in staff costs at Telefonica Data Espana compared to the year before, deriving
from the creation of new areas or incorporation of existing resources as a    
consequence of the development and expansion of the business, mainly in   
preparation for the Telefonica Data Internet Centers (TICs).

Based on proforma 2000 results for Telefonica DataCorp, including revenues from
the Data Operators in Argentina, Brazil (Sao Paulo) and Peru, in addition to the
2000 results already announced and including as well Mediaways, Telefonica
DataCorp revenues at the end of 2000 were EUR 1,487 million. This is the point
of departure for year 2001 that will be the first year in which Telefonica
DataCorp will operate fully in line with the Linea business model.


GRUPO TELEFONICA MEDIA

Year 2000 was characterised by two relevant facts affecting its financial 
results. On one hand, a very significant change in its basis of consolidation, 
mainly due to the inclusion of ATC0 (in which the Group increased its stake from
26.8% to 100% during the year) which began to be consolidated by the global
integration method, having been consolidated by the equity method in the first
quarter and the entry of Endemol, which was consolidated by the global
integration method from August. On the other hand, the write off in Latin
American investment provisions and in the football broadcasting.

The incorporation of the financial statements of the Dutch company Endemol and 
of the Argentine group ATCO have significantly increased the Telefonica Media
Group's consolidated revenues and EBITDA.

Revenue in 2000 was EUR 730.5 million, up from EUR 98.2 million in 99.  Endemol 
had sales of EUR 347.8 million, 47.6% of the Group total, and Atco, with sales
of £225.1 million, contributed 30.8%. Telefonica Servicios Audiovisuales and
Onda Cero Radio had sales of over EUR 53 million and the film production company
Lola Films by St-Hilo sales of ever EUR 15.8 million.

Telefonica Media's investments show a negative balance of EUR 499.9 million,   
484.7% less than at the end of 1999. This was due to the large write off that
were made in 2000, which rose to over EUR 696.2 million, the majority of which 
correspond to ATCO (EUR 363.4million), and Via Digital's negative contribution 
of EUR -123.4million, 12.1% higher than in 1999.  This factor diluted the
positive contribution of other assets such as Antena 3, which contributed EUR
56.9 million and Pearson, which contributed EUR 52.8 million.

As a result of the investments made over the year there was a large increase 
(150.1%) in goodwill amortisation during 2000, which reached EUR 93.8 million
vs. EUR 37.5 million in 1999.

Finally, the bottom line, net of investment, was EUR -627.1 million, as a  
result of the reasons mentioned above.

Antena 3

During 2000, Antena 3 consolidated its position as the TV channel with the
second highest number of viewers in Spain after TVE1, with an audience share in
December of 21.4% and retained its leadership by population segments amongst
children, teenagers and housewives with children.

The Spanish television advertising market grew 9.4% compared with 1999, whilst 
Antena 3's advertising revenue rose by 11.2%, maintaining a favourable trend in
the relationship between market share and audience share, with a ratio of 1.30
at the end of 2000 vs. 1.21 in 1999.

Financial revenue was EUR 600.1 million, an increase of 9.8% vs, 1999, whilst 
EBITDA grew by 9.9% vs. 1999, reaching EUR 194.8 million, giving a revenue
margin of 32.5%. Finally, Antena 3's net income was EUR 137.7 million, 13.9%
higher than in 1999.

Via Digital

The Company has successfully exceed the 2000 target of 600,000 subscribers,
reaching 633,059 as of year end (43.8% more than in 1999).

During 2000 Via Digital continued its strategy of customer recruitment within  
an increasingly competitive environment as shown by the appearance of new 
competitors (Quiero TV), the greater activity of cable companies and Sogecable's
aggressive promotional strategy. This strategy, fundamental in obtaining 
critical mass, was reflected in the Company's results.

A major effort has also been made to provide attractive content for audiences, 
which has led to the inclusion of such important programmes as US Golf Tour, Big
Brother, the European Basketball League, football matches involving the Spanish
national side and contents arising from the deals made with US distributors
(Disney, MGM, Universal, etc.).

As a result of this, the Company obtained 193,000 new subscribers during 2000, 
a figure far above that of any of its competitors, both in absolute (122,000
Sogecable) and relative (43.9% growth vs. a sector average of 22.9% and
Sogecable's 6.7%) terms.

From the financial point of view, revenues reached EUR 221.6 million, 60.2%
higher than in 1999.

Endemol

In order to adapt its year-end close to that of Grupo Telefonica, Endemol
Entertainment's 2000 financial year was five months long. Prior to its
acquisition its financial year ended in July.

Endemol's performance during these 5 months can be considered to have been very 
fruitful, with its turnover reaching EUR 347.8 million, up on the EUR 237
million for the first 6 months of its 1999 financial year. 'Big Brother' has
been very successful in all the countries where it has been broadcast. EBITDA 
in this 5-month period was EUR 66.8 million, compared with EUR 30.5 million
obtained in the first half of the 1999 financial year.

ATCO

During this quarter the remaining 26.8% of ATCO was incorporated into       
Telefonica Media's accounts.  

ATCO owns Telefe, Argentina's leading private commercial TV channel and the 
third largest in Latin America, with a domestic market share over 38%.

However, financial operating revenue fell 27% vs. the fourth quarter of 1999, 
whilst operating expenses only fell by 13%.  EBITDA, although positive, fell 95%
vs. 1999.

Conservative accounting practices made major write off necessary in the final 
quarter of 2000 as a result of, amongst other things, unusable film material, 
contra-advertising losses, tariff payment provisions, accelerated goodwill
amortisation, etc.

Telefonica Media's management confident that it can achieve a turnaround in 
profitability, as it did with Antena 3, which, in less than three years, has 
gone from being a company with significant financial problems to the most
profitable private commercial TV channel in Europe.


TERRA-LYCOS GROUP

For Terra the most significant event of 4Q00 was undoubtedly the conclusion of
its acquisition of Lycos at the end of October, after the deal won the support
of 98% of Lycos shareholders at the extraordinary general meeting. The
consolidated Telefonica group accounts include Lycos results from the time of
acquisition only, (i.e. for the last two months of the year).

Terra announced its intention to buy Lycos Incorporated, the leading multibrand 
Internet  network, on 16 May last year.  The successful conclusion of the deal
created the first truly global Internet company, present in 41 countries, and
should facilitate the further convergence of services, content and distribution.

In  short,  the acquisition has created a new Internet media  portal  of       
global  dimensions  whose reach far exceeds that of any  other  Internet       
company or other medium In the world.

As  regards  operating variables, at the close of the year  Terra  Lycos       
had  6.1  million  subscribers including the Lycos Europe  customers,  4.8      
million  more than at the end of December 1999. Spain and Latin  America       
accounted for 67% of this number, with the remainder in other  European       
countries.  In the last quarter of the year alone Terra Lycos  won  more       
than  1.2  million new access subscribers. Particularly  impressive  was       
the expansion of the broadband subscriber base, which after doubling  in       
each  successive quarter by the year-end had reached 41,000, 141% higher       
than at the end of 3Q00.

Total  page  views  in December 2000 were 227% higher than  in  December       
1999  in  pro-forma terms, with the average per day coming out  at  more       
than 350 million.

Terra-Lycos was particularly active in M&As and strategic alliances  in       
2000. Its activities in these areas generally focussed on acquiring  and       
investing in assets with the potential to boost vertical integration  of       
content, expand the average length of user visits increase the reach  of       
its audience. The main deals concluded were:

- In  October,  the  acquisition  of Spray by  Lycos  Europe,  a  leading       
European  Internet media company providing consumers with a network  of         
country  specific  portals containing local  content,  e-commerce  and          
communications  services. The acquisition positions  Lycos  Europe  as          
the leading portal across central and northern Europe.

- In   November,  the  acquisition  of  Multimania,  the  leading  French       
on-line  community  site, giving Lycos Europe the  most  comprehensive          
portal offering in France.

- In  November,  a  joint  venture between Terra-Lycos  and  Amadeus  to        
acquire  a  majority  stake in OneTravel.com,  a  top-ten  US  on-line          
travel Web site.

- In  November,  Terra-Lycos'  announcement  of  the  acquisition  of  a        
majority  stake  in  Bumeran.com International Holdings,  Ltd., Latin           
America's number-two career web site.

- In  January,  Terra-Lycos' announcement of the acquisition  of  Raging        
Bull, a leading financial community on the web.

- Also  in  January,  Terra-Lycos' announcement of  the  acquisition  of        
Iberwap, Spain's leading provider of digital cartography services  and          
content.

- Agreement  with  Bertelsmann: as part of the merger  agreement,  Terra        
Lycos   entered  into  commerce  agreements  with  Bertelsmann   and            
Telefonica  totalling $1 billion over five-years for the purchase  of           
advertising, placement and integration services from Terra  Lycos.  In          
addition,  Terra Lycos gains access to Bertelsmann's premier  catalogue         
of  books,  music,  television,  film  and  other  media  content,  on          
preferential terms and conditions.

Turning  to  financial  and economic variables,  consolidated  revenues,       
including  the  revenues of Lycos for the last two months  of  the  year      
came  to EUR 304 million, 657% ahead of total 1999 revenues. EBITDA  margin     
(i.e. as a percentage of revenues) was a  negative 118%, though when compared
with the negative 193% registered in  1999, this confirms the company's margins
are gradually improving as it moves from red to black.

Terra  Lycos' pro-forma results provide a more accurate picture  of  the       
company's  performance in 2000, as they reflect  the  impact  of  Lycos'       
integration  on  the  consolidated account over the entire  year.  These       
accounts  set Terra Lycos' proforma revenues as of 31 December  2000  at       
EUR 569  million,  87% higher than in the previous year.  During  the  last     
quarter of the year, proforma revenues reached EUR 188 million, 29%  more       
than the third quarter. 75% of revenues were generated  by  the  media       
division,  which  includes  advertising  and  e-commerce,  while  the       
remaining 25% corresponds to access business revenues.

The   acquisition   of   Lycos  has  brought  Terra   immediate   margin       
improvements. Consequently, while non pro-forma EBITDA margin (i.e.  not       
including  Lycos)  in  1999 was a negative -193%  (as  a  percentage  of       
revenues),   following  the  acquisition  of   Lycos   and   thanks   to       
improvements  in Latin American margins, in 2000 the same EBITDA  margin       
but pro-forma (i.e. Including Lycos) comes out at a negative -66%.

TPI - PAGINAS AMARILLAS

The  changes in the sphere of consolidation prior to the company's stock       
market  listing  in  June 1999, make comparison of  the  1999  and  2000       
results  difficult, so in this document it will be compared  the  results       
of  the  consolidated group as of 31 December 2000, with  the  pro-forma       
results for 1999, stripping out the effects of companies now outside  of       
the financial statements.

Year 2000  saw  an  acceleration  in  the  TPI  group's  international       
expansion  strategy,  involving the consolidation  of  its  position  in       
Brazil,  where  revenues amount to EUR 34.7 million  and  represent  8%  of     
total   consolidated  income.  The  group  has  also  strengthened   its       
international  presence  by purchasing 51% of  Publiguias,  the  leading       
firm in the Chilean directory market.

TPI  has also consolidated its diversification strategy on the Internet,       
with  robust  growth  in  traffic, pages viewed and  hits  (with  levels       
tripling), and this has boosted revenue by 190% to EUR 7.8 million.

This  strong  performance by all business lines resulted  in  an  EBITDA       
growth  of  11.2%. to EUR 121.3 million. However, net profit was  down  by      
12.8%  basically  because  extraordinary  pre-tax  profits  were  EUR 22.3      
million lower. Without considering extraordinary gains, funds generated would
have grown 23.3% to EUR 85.1 million.

As for TPI  Espana, revenues grew by 12.1% from their 1999  level  to reach 
EUR 376.8 million, thanks mainly to stronger sales of the paper product (up by
10%), as well as multimedia products, which grew by 106%.

Growth of the paper product stems from the positive trend in sales of Yellow
Pages, which grew by 9.2%, explained mainly by a 12.7% increase in average
earnings per client (offsetting a 3.1% drop in the number of clients);  and  
secondly  by  an  11.7%  increase  in  revenues  from advertising, editing and 
distribution of White Pages.  Revenue from White Pages advertising grew by
10.6%. mainly as a result of publishing 61 directories in 2000 compared to 47 in
1999 (six are new publications and eight are subdivisions made to match the
Yellow Pages format);  an 86.6%  growth  in  sales  by the TPI sales force which
compensates for lower revenue from Telefonica resulting from the final
incorporation of its clients into the TPI portfolio. Publishing and distribution
revenues rose by 14.9% as a result of publishing a larger number of books than
in 1999.

Growth of the multimedia product is explained by the strong performance       
of Yellow Pages online, where revenues almost tripled their 1999  level       
(clients  now top 63,000, an increase of 273% compared to 1999);  income       
from  banner  sales  amounting  to EUR 1 million (10.4% of total online       
revenues);  and  revenues from Paginas Habladas which  grew  by  16.3%       
compared to 1999 (24.8%,4Q00 vs. 4Q99)

From  an operational standpoint, 4.5 million hits were received  in  the       
fourth  quarter  (up  by  58% from the previous quarter  and  by  172.5%       
compared  to  4Q99), and the number of page views totalled 81.1 million       
in  the  final quarter - an increase of 37.6% from the previous quarter       
and up by 132% since 4Q99.

EBITDA rose by 16.2%, to reach  EUR 125.8  million, pushing the EBITDA margin 
120 basis points above its 1999 level.  This improvement in the EBITDA, margin
does not translate into net profit growth, which was 14% lower than in 1999, 
basically  because  of  the  smaller extraordinary profits mentioned above
(which mainly arise from  capital gains  on  the sale of subsidiary companies
prior to the TPI flotation).  Funds  generated,  without considering
extraordinary gains would have grown 27.7% to EUR 0.5 million.

Finally, it is  worth  mentioning that TPI Brasil has  earned EUR 14.2       
million  in  revenues from the commercial agreement with the  publishing       
company  Listel.  In 2000, Listel published a total of  58  White  Pages       
directories,  28  Yellow Pages directories and nine street  directories.       
Apart  from this, the company earned a total of EUR 20.6 million  from  the     
publication  of  three  White Pages (Sao Paulo capital, Guarulhos  and       
Riberao do Preto) under its association with the fixed phone  operator       
Sao Paulo Telesp.


ATENTO

Atento entered a phase of business consolidation in 2H00, moving  from 
a  stage  of  growth  and  investment to one of profit  generation.  The      
company's key goals have been to stablish contracts with large  clients,     
and  create  lasting  relationships of  high  added  value;  to  improve       
operational management efficiency to enhance the company's margins;  and       
greater  control over the level of expenditure and investment, in  order       
to obtain an adequate rate of return.

Atento's   fourth   quarter   commercial   activity   has   focused   on       
strengthening  its role as a strategic partner in the Grupo  Telefonica       
companies;  consolidating the progress achieved during the year  working       
with   large   clients,   and  provide  services  generating   long-term      
relationships  of high added value. Internally, the Commercial  Area  is       
developing  a  CRM strategy for several Telefonica Group  enterprises,       
notably  Atento  Chile  which took over CTC's  entire  customer  service       
operation  in  the fourth quarter. In the external market,  headway  was       
made  during the third quarter in forging global agreements with  CIGNA,       
Citibank, Direct TV, Unilever and Disney, among others.

Financially speaking, Grupo Atento's total revenues as of year end  2000       
rose  to  EUR 526.9 million - up by 133% compared to  1999.  The  external      
market produced revenues totalling EUR 160.7 million which represents  an       
increase of 648% compared to the 1999 figure, and this means that 30.7% of 
the group's income now comes from sources outside Telefonica Group.      

Equally  noteworthy  is  the increasing geographical  diversification  of      
revenue  sources, While Brazil and Spain still account for 86%  of  group      
earnings,  other countries have increased their contribution considerably      
in accounting for the remaining 14% (Chile contributes 8% and Peru 3%).

EBITDA  for 2000 came in at EUR 25.2 million, down by 17.0% from  the  year     
end  1999 figure, resulting in a 4.9% margin. The lower profit is  due  to      
higher  one  time expenses incurred by the Group in launching  operations      
in  new  countries,  along with expenses entailed  in  consolidating  the      
various operations In a single company.

Lastly,  it  is worth noting that 2000 has been a critical  year  in  the      
life  of  Atento,  in which it has made headway in transitioning  from  a      
business  start-up  to  the  consolidation of its  activities.  This  has      
enabled  Atento to position itself as a leading firm in terms  of  global      
presence and market share, with profitability levels comparable to  other      
leading players in the global of CRM outsourcing industry.


FOR FURTHER INFORMATION, PLEASE CONTACT:

Subdireccion General de Relaciones con Inversores.
Gran Via 28, planta 3a. 28013 Madrid.
Tel: [phone].
Fax: [phone].
E-mail: [e-mail]
E-mail: [e-mail]
E-mail: [e-mail]
www.telefonica.com/ir/eng


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