Organisational Structure

Telefonica SA
05 December 2003


Press Release

04/12/03


TELEFONICA CONCLUDES ITS RESTRUCTURING

Madrid, 4 December 2003.- Telefonica's Board of Directors Commitee for
Appointments and Compensation, at the petition of the Group's chairman, has
agreed to put forward Joaquin Agut Bonfills as CEO of Endemol and, as a
consequence of the vacancy he leaves, to propose Joaquin Faura Batle as CEO of
Terra.

At the same meeting, the Committee also agreed to appoint Luis Blasco Bosqued as
General Manager of Telefonica Contenidos.

Luis Abril Perez will become General Manager of Corporate Communications.

Alberto Horcajo Aguirre has been named head of Resources -he remains CEO of
Atento- upon the resignation of Antonio Palacios Esteban, who the committee
expressly thanked for his years of service and dedication to the Group.

Finally, a new Subsidiaries Area has been created, which will be overseen by
Guillermo Fernandez-Vidal.

This concludes the restructuring of Telefonica Group's organisational structure
which now looks like this:

1. Three core businesses:

      • Telefonica Moviles
      • Telefonica de Espana
      • Telefonica Latinoamerica

2. A new Subsidiaries area, which encompasses TPI, Endemol and Telefonica
   Contenidos.

3. A simple and lean Corporate Centre, comprising just five areas:

      • Finances and Shared Resources
      • Development, Planning and Regulation
      • General Secretariat
      • Corporate Communications
      • Audit and Management Resources

Francisco de Bergia remains General Manager, Assistant to the Chairman, with his
previous responsibilities.

These changes mark the end of the restructuring begun in September aimed at
adapting the company's structure to bring this into line with an increasingly
demanding industry, simplifying it and focusing more on servicing customers and
promoting the Group's vision.

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


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