Possible sale of TPI

Telefonica SA
28 April 2006









Pursuant to the information notified by the Company in the Significant Event
registered today, TELEFONICA S.A. as provided in Section 82 of the Spanish
Securities Market Law (Ley del Mercado de Valores), hereby submits the following





NOTICE





That the possible sale of TELEFONICA, S.A.'s holding in the share capital of
TELEFONICA PUBLICIDAD E INFORMACION, S.A. (hereinafter, 'TPI'), within the
framework of the public tender offer for all shares of TPI announced by YELL
GROUP plc (hereinafter, 'YELL'), would imply for TELEFONICA the recording of
capital gains net of tax in its consolidated financial statements for 2006 of
1,577 million euros.  As indicated previously, the price of the offer presented
by YELL is 8.50 euros per share, giving a total price of 1,838 million euros for
59.905% of the share capital of  TPI currently owned by TELEFONICA, with the
latter receiving, in addition, 86.5 million euros in dividends prior to the
sale.



Furthermore, we hereby confirm that TPI will maintain the agreements with
Telefonica de Espana, S.A. referred to in the prospectus for its public
offering.



Madrid, 28 April 2006.
















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