Management structure

Telefonica SA
21 December 2005


Press Release


Julio Linares, new General Director of Coordination, Business Development and
Synergies

TELEFONICA CHANGES ITS MANAGEMENT STRUCTURE TO MEET ITS NEW PROJECTS AND
TARGETS

  • Luis Lada, new Chairman of Telefonica de Espana

Madrid, 21 December 2005 - At today's ordinary board meeting, Telefonica S.A.'s
Board of Directors has approved the restructuring of the Company's senior
management in accordance with its projects and targets.

In recent months Telefonica has taken on a new multinational scope and has set
itself clear integration and cultural targets. Both goals are based both on the
performance of its businesses in Spain and Latin America and on recent
operations carried out by the Group: the successful integration of the mobile
operations acquired from BellSouth, the acquisition of Cesky Telecom and the
projected incorporation of  the British company O2 into the Group, with a
significant presence in the UK, Germany and Ireland. Cooperation agreements
signed with China Netcom also form part of this new approach.

Given the greater international projection and integrated business of the new
Telefonica, the Group's Chairman, Cesar Alierta, has proposed a series of
management mechanisms to the Board to address the company's requirements in a
global, integrated and competitive environment.

There are two basic targets behind this management reorganisation. First,
obtaining positive results is a priority in each and every one of the business
lines, whilst the second target is to maximise the leverage obtained from the
Group's scale, positioning and leadership. On the basis of these premises,
Telefonica could maximise the value of its integrated management and continue to
offer the best combination of growth and cash return in the sector the short-,
medium- and long-term.

The changes to the organisational structure approved today are primarily based
on the creation of a new General Management for Coordination, Business
Development and Synergies, which will be in charge of carrying the Telefonica
Group forward as a unique and integrated company with Julio Linares, as Chairman
of Telefonica de Espana, at the helm.

The main objectives of this new division are as follows:
          
     •    Leverage all the possible benefits from Group synergies.

     •    Continue to transform the Group in an orderly and consistent manner,
          with the customer, commercial initiatives, operational excellence, 
          innovation and talent management at the forefront.

     •    Group performance will be anticipated proactively by offering digital
          integrated communications solutions, and information and entertainment 
          to all market segments.

In his new role Julio Linares will be in charge of the following areas:
Strategy, Budgeting and Control (Alfonso Alonso), Commercial (Adrian Garcia
Nevado), Infrastructure and Information Systems (Vicente San Miguel),
Purchasing, which includes Real Estate, Logistics and T-Gestiona (Alberto
Horcajo) and Human Resources Oscar Maraver).

Elsewhere in the company, the General Finances and Corporate Development
division will be strengthened, headed by Santiago Fernandez Valbuena,  who from
now on will oversee the General Finances division, Corporate Development (Angel
Vila) and Subsidiaries and Associated Companies (Luis Blasco). The latter also
includes TPI, Endemol, Atento, TSA, Telefe and Affiliated Companies

Luis Lada, who has been General Manager for Development, Planning and Regulation
up until now, will become Chairman of Telefoncia  de Espana.  Antonio
Viana-Baptista will remain at Telefonica Moviles and Jose Maria Alvarez Pallete
at Telefonica Latinoamerica. Once the acquisition of O2 has been finalised, the
company's CEO, Peter Erskine, will retain his position at this division which
will also include Cesky Telecom and Telefonica Deustchland.

All of these four units will continue to report to the Chairman along with the
General Finances and Corporate Development unit and the newly created General
Management for Coordination, Business Development and Synergies.

Legal Services (Juan Carlos Ros), Corporate Communications (Luis Abril),
Internal Audit (Calixto Rios) and Institutional Relations and Foundation (Javier
Nadal), which includes Regulation and the Department for External Relations,
will also report directly to the Chairman, as will the General Secretariat
(Ramiro Sanchez de Lerin), who is also Secretary of the Board of Directors.

Lastly, the contribution from the General Manager for Commercial Development,
Guillermo Fernandez Vidal, will be modified. Instead of playing an executive
role he will take on a professional and active function as Board Member of
various Group business lines; Telefonica de Espana, TPI and Telefonica Moviles,
amongst others.

The chart with the new Telefonica's management structure is available on the
Company's website (www.telefonica.es)


Para mas informacion / For further information

Direccion de Comunicacion Corporativa      Tel:  [phone]

Press Office                               Fax:  [phone]
Gran Via, 28 - 3a Planta                   e-mail:  [e-mail]

28013-MADRID
                                           http://www.telefonica.es/saladeprensa


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