Redemption of Bonds

Telefonica SA
9 March 2001

TELEFONICA, S.A., in accordance with that stated in article 82 of the Spanish
Stock Market Law hereby announces the following:

On April 17th of this year, and in compliance with the conditions stated in the
Prospectus for the Bond Issue 'April 1991 B' (ISIN code number ES0278430782),
registered with the Spanish National Securities Commission on February 5th,
1991, the 200,000 bonds of the issue will be totally redeemed through the
repayment of the 360% of their nominal value of Ptas 100,000 each.

                                                        Madrid, March 8th, 2001