New Structure

Telefonica SA
25 July 2002


                THE BOARD OF DIRECTORS OF TELEFONICA APPROVE
                      A NEW COMPANY MANAGEMENT STRUCTURE

The Board of Directors of Telefonica, at its meeting held on July 24th, approved
a new Company management structure. The most outstanding points are as follows:


  • The creation of a Division for Corporate Strategy and Regulation.

    As a consequence of the increasing importance and inter-relation between the
    strategic outlook and regulatory frameworks, the decision has been taken to
    group several functions together that were previously carried out in
    different areas of the organization.

    The person appointed to head this new Division is Luis Lada, and this
    Division will also include the areas of Strategy, Corporate Development
    (under Angel Vila), Regulation and Institutional Relations.


  • Antonio Viana- Baptista will be proposed to the Board of Directors of
    Telefonica Moviles, S.A. as Executive Chairman in substitution of Luis Lada.

  • Jose Maria Alvarez- Pallete, to date the Group's C.F.O., will be named
    Executive Chairman of Telefonica Internacional (LATAM).

  • Santiago Fernandez Valbuena, currently Managing Director of Fonditel, will
    become the new General Manager of Corporate Finance.

  • Calixto Rios, the current General Manager of Communication, Marketing and
    Institutional Relations, will become the General Manager of the Internal
    Auditing and Communication Division. This Division will combine its
    Corporate Communication responsabilities (which remain unchanged) with those
    of Internal Auditing and Supervision, Security and Human Resources for Top
    Management.

  • Luis Abril will be responsible for the Media, Marketing and Content
    Division, as well as the Corporate Reputation unit. This Division will
    include that of Marketing and Content (under Kim Faura) and Media.

  • The Human Resources Division (under Oscar Maraver) will come under the
    C.O.O.

  • Francisco de Bergia will continue in his position as General Manager,
    Assistant to the Chairman.

  • The business lines will report to the C.O.O.

  • A Management Committee has been created comprising of the C.E.O., the
    C.O.O, the General Manager of Corporate Strategy and Regulation, the General
    Manager of Corporate Finance and Chairmen of Telefonica Moviles, Telefonica
    de Espana and Telefonica Internacional.

The organizational chart of the new structure is available at Telefonica's
internet website (www.telefonica.es)


                                                         Madrid, July 25th, 2002


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