Financial information control

Telefonica SA
29 November 2002



The Board of Directors approves strict norms on the control of information and
financial-accounting


TELEFONICA IS A FORERUNNER IN THE APPLICATION OF THE SARBANES-OXLEY LAW OF
GOOD CORPORATE GOVERNANCE


These measures aim to develop the highest degree of management quality and
transparency



At its meeting held on November 28, the Board of Directors of Telefonica, S.A.
approved new norms regarding the control of information and
financial-accounting, applying the first regulations set forth in the
Sarbanes-Oxley Law regarding good corporate governance, issued by the SEC.


The new norms revise and strengthen the existing controls applied by Telefonica,
regarding the certifying and transparency of financial and accounting
information, therefore permitting the Company to maintain its world-wide
reputation for quality and transparency in the financial information it provides
to the market.


These new norms regarding the accounting, reporting and control of the Group's
financial-accounting information complete the actions taken recently by the
Board of Directors of Telefonica in terms of good corporate governance, these
being, for example, the introduction in October of the new Internal Code of
Conduct (Code of Ethics), and the reorganising of all the Board's Committees,
approved in June.


The measures approved yesterday introduce the internal mechanisms necessary to
fulfill the requirements for the certifying of accounts by the Executive
Chairman and the Chief Financial Officer. A clear scheme of responsibility has
also been introduced regarding the reporting and drawing up of
financial-accounting information, which also sets forth a mechanism that
periodically tests the good-functioning of the control systems.


These new norms, which are breaking ground among Spanish companies, reflect a
significant step forward within the framework of initiatives introduced by
Telefonica as a consequence of the interest of the Company's managers and
governance bodies to at all times achieve the highest degree of transparency and
good corporate governance.


Madrid, November 29th, 2002


                      This information is provided by RNS
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