T. Moviles-strategy&outlook

Telefonica SA
29 April 2005

                          NOTICE OF SIGNIFICANT EVENT



In compliance with article 82 of Spanish Securities Market Law 24/1988, and
related provisions, and in order to make it public as the notification of a
Significant Event, Telefonica, S.A. hereby informs that its subsidiary
Telefonica Moviles, S.A., has presented in the Fourth Investors Conference, held
in Barcelona on April the 25th and 26th, its business strategy and perspectives.
The information provided contains estimates for the principal financial
magnitudes for the period 2004-2008.



These estimates are the following:



TELEFONICA MOVILES GROUP




                                         Reported 2004 under IFRS               CAGR(*) 2004-2008

                                              (€ in Millions)                          (%)




Revenues                                         11,743.7                           12% - 16%




Operating Income before D&A                       4,577.7                           14% - 17%




Operating Income                                  3,054.7                           15% - 19%





(*) CAGR stands for Compounded Annual Growth Rate.





The managed customer Base is estimated to reach over 125 million in 2008,
compared to the 74.4 million reported in 2004. Also the Operating Cash Flow for
the year 2008 is expected to double the Operating Cash Flow obtained in year
2004 (2,960 MM €).



The cumulative Operating Income before D&A for the period 2004-2008 is estimated
to be over 32,500 MM €, with a cumulative CAPEX for the same period below 9,500
MM €, leading to  a cumulative Operating Cash Flow for the same period over
23,000 MM €.



All projections refer to local currency, that is assuming constant exchange
rates as of 2004, and exclude changes in consolidation, except the acquisition
of BellSouth Chile and BellSouth Argentina in 2005.



In terms of guidance calculation, Operating Income before D&A and Operating
Income exclude other exceptional revenues/expenses not foreseeable in 2005-2008.
These exceptionals amounted to 102.2 MM € in 2004 and are therefore also
excluded, meaning a calculation base for guidance of 4,677.9 MM € for Operating
Income before D&A and 3,154.9 MM € for Operating Income, respectively. Personnel
Restructuring and Real Estate Programs are included as operating revenues/
expenses.



For a more detailed information regarding the Investors presentation, the full
text of the Presentation is accessible through the web page of the company
(www.telefonica.es).



This document contains statements that constitute forward looking statements of
the Telefonica Moviles, S.A. or its management, including statements regarding
the intent, belief or current expectations of the customer base, estimates
regarding future growth in the different business lines and the global business,
market share, financial results and other aspects of the activity and situation
relating to the Telefonica Moviles, S.A..



Such forward looking statements are not guarantees of future performance and
involve risks and uncertainties and actual results may differ materially from
those in the forward looking statements as a result of various factors.



Analysts and investors are cautioned not to place undue reliance on those
forward looking statements which speak only as of the date of this
communication. Neither Telefonica, S.A.nor Telefonica Moviles, S.A. undertake no
obligation to release publicly the results of any revisions to these forward
looking statements which may be made to reflect events and circumstances after
the date of this communication including without limitation changes in
Telefonica Moviles  S.A.'s  business or acquisition strategy or to reflect the
occurrence of unanticipated events. Analysts and investors are encouraged to
consult the prospectus of both, Telefonica, S.A. and Telefonica Moviles, S.A. as
well as periodic filings made with the relevant financial regulatory
authorities.




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