1st Quarter Results - Part 2

Telefonica SA
16 May 2000

PART 2 

Telefonica, S.A.
TISA's operating subsidiaries consolidated by equity method

Consolidated Income Statement
Unaudited figures                                           Euro in millions
                                             January-March         %
                                           2000        1999      Change

Operating revenues (1)                   3.577,6   3.171,3       12,8
Internal expend capitalized in fixed 
  assets (2)(3)                            123,8    149,9       (17,4)
Operating expenses                      (2.194,1)(1,609,3)       36,3
  Supplies (3)                            (684,6)  (519,4)       31,8
  Personnel expenses                      (770,4)  (882,6)       12,9
  Subcontracts                             (685,0)  (351,1)       95,1
  Taxes                                    (54,0)   (56,2)       (3,9)
Other operating income (expense) net(1)    (30,1)   (46,1)      (34,7)

EBITDA                                   1.477,2  1.665,8       (11,3)

Depreciation and amortization             (920,7)(1.018,5)       (9,6)

Operating profit                           556,5    647,3       (14,0)

Profit from associated companies            87,5     11,7       650,2
Financial income (expense) net            (252,2)  (133,8)       88,6
Amortization of goodwill                   (97,5)   (60,0)       62,4
Extraordinary income (expense) net         202,6   (142,2)       c.s.
Income before taxes                        496,8    323,0        53,8

Income taxes                              (174,5)   (65,1)      167,9 

Net income before minority interests       322,3     257,9       25,0
Minority interests                          23,7       0,0       n.s.
Net income                                 346,0     257,9       34,2
Outstanding shares (million)(4)          3.276,8   3.136,1        4,5
Net Income per share                       0,11.     0,08.       28,4

(1) In March 99 figures, management fees (31,9 million euros) have
    been reclassified from Other Operating Income to Operating Revenues.
(2) Including works in process. 
(3) In March 99 figures, 8,3 million euros from TSM have been reclassified from 
   Internal expenditure capitalized in fixed assets to Supplies. 
(4) Shares at the end of period. Increase of 62,722,527 and 63,976,998 shares,  
   both as a result of bonus issues (1 x50) and 13,966,207 shares to cover
    convertible bonds. Takes into account the 3xl stock split carried out
    on 27/07/99.


Telefonica, S.A.
TISA's operating subsidiaries consolidated by equity method

Consolidated Balance Sheet                              Euros in millions
Unaudited figures                             March             %
                                        2000         1999    change

Subscribed shares not paid-in            3,1          3,1       0,4
Long-term assets                    31.724,2     30.292,7       4,7
  Star up expenses                     186,1         95,7      94,5
  Intangible net assets              6.229,1      5.911,4       5,4
  Fixed net assets                  15.619,9     17.488,7     (10,7)
  Investments                        9.689,l      6.796,9      42,6

Goodwill on consolidation            3.506,5      2.001,8      75,2
Deferred expenses                    1.014,1        623,9      62,5

Current assets                       5.401,2      4.542,1      18,9
  Inventories                          289,3        225,8      28,1
  Accounts receivable                3.624,8      2.780,3      30,4
  Short-term investments               792,2      1.367,8     (42,1)
  Cash and banks                       561,6        111,4     404,3
  Other                                133.2         56,8     135,0

Assets = Liabilities                41.649,1     37.463,6      11,2

Shareholders' equity                14.968,2     13.381,4      11,9
Minority interests                     463,9         15.9      n.s.
Deferred Income                      1.120,7        732,3      53,0
Provisions for risks and expenses    5.683,8      5.953,0      (4,5)
Accrued taxes payable                  750,1        386,9      93,9
Long-term debt                      10.181,3      9.815,9       3,7
Short-term debt including current 
maturities                           3.634,1      3.620,8       0,4
Interest payable                       234,2        205,5      14,0
Other creditors                      4.612,8      3.351,9      37,6

Financial Data
Consolidated net debt (1)          12.461,6     11.957,5       4,2
Consolidated debt ratio (2)             41,9%        45,2%     (3,3 p.p.)

(1) Net debt Long-term debt + Short-term debt including current maturities -    
   Short-term investments - Cash and banks.

(2) Debt ratio: Net debt/(Shareholders' equity + Minority interests + Deferred
    Income + Accrued taxes payable + Net debt)


Grupo Telefonica de Espana
Consolidated Income Statement
Unaudited figures
                                                          Euros in millions
                                        January-March             %
                                     2000           1999        Change

Operating revenues                 2,504,2        2,468,3           1,5
 Telefonica de Espana              2,353,5        2.408,4          (2,3)
 Others and eliminations             150,7           59,9         151,6
Internal expend capitalized in 
  fixed assets (1)                    57,9           84,3         (31,4)
Operating expenses                (1.402,7)      (1.210,3)         15,9
Other operating income(expense)net     9,7            6,6          46,3

EBITDA                             1.169,0        1.348,9         (13,3)

Depreciation and amortization       (739,3)        (885,3)        (16,5)

Operating profit                     429,7          463,7          (7,3)

Profit from associated companies       0,0           (0,3)         n.s.
Financial income (expense) net      (134,9)        (157,0)        (14,1)
Amortization of goodwill              (0,1)          (0,0)         n.s.
Extraordinary income (expense) net  (112,7)        (167,1)        (32,6)

Income before taxes                  182,0          139,2          30,7

Income taxes                         (39,4)         (32,5)         21,3

Net Income before minority           142,6          106,7          33,6
interests

Minority interests                    (0,1)           0,1          c.s.
                                      
Net income                           142,5          106,8          33,4

(1) Including works in process


Grupo Telefonica de Espana

Telefonica de Espana (individual) operating revenues

Unaudited figures                                          Euros in millions
                         
                                                 January-March             %
                                               2000          1999       Change

Revenue derived from usage                    1.434,3      1.524,4      (5,9)

  Local                                         435,7        418,4       4,1
  Provincial                                    142,4        161,2     (11,6)
  Domestic long distance                        254,9        343,8     (25,9)
  International long distance (outgoing)(1)     127,0         98,0      29,6
  Fixed to mobile                               356,3        318,0      12,1
  Interconnection International (Incoming)       52,5         62,5     (16,0)
  Interconnection National Operators (1)         85,5         86,8      (1,5)
  Others                                        (20,1)        35,7       c.s

Monthly fee                                     742,8        738,0       0,6
Connection fee                                   66,1         56,7      16,7
Customer equipments                              49,7         33,3      49,6
Others (2)                                       60,6         56,0       8,2

Total operating revenues                      2.353,5      2.408,4      (2,3)


(1) Net of foreign participation
(2) Including special services, IRIS services and others.


Grupo Telefonica de Espana
Operating Data
Unaudited figures
                                                      March               %
                                               2000          1999       Change

Lines installed (thousands) (1)            17.055,0      16.849,3        1,2  
Lines in service / 100 inhabitants (2)         49,0          46,5        5,3

Incoming Internat. Traffic 
(mill. minutes) (3)                             496           460        7,8
Outgoing Internat. Traffic 
(mill. minutes) (3)                             569           407        39,8

Usage growth (minute/line/day) (3)            23,0%          8,2%     14.8 p.p.
  Fixed networks outgoing traffic             17,8%          2,9%     14,9 p.p. 
 Interconnection traffic with  
    International Operators                    3,7%         11,4%    (7,7 p.p.)
  Interconnection traffic with 
    Domestic Operators                        77,6%        115,1%   (37,5 p.p.)
Employees                                    46.990        51.794       (9,3)
Lines / Employees (2)                         415,2         356,1        16,6

(1) Marketable basic telephone lines
(2) Basic telephony lines (including public telephones, Ibercom, ISND and       
   Connections lines with PABX)
(3) Estimated figures. Special service and mobile operators included


Telefonica Moviles Group
Consolidated Statement of Income
Unaudited figures                                          Euros in millions

                                                 January-March             %
                                               2000          1999       Change

Operating revenues                            1.067,1        779,5      36,9
Internal expend capitalized in 
  fixed assets(1)                                10,8         13,3     (18,8)
Operating expenses                             (672,5)      (507,8)     32,4
Other operating income (expense) net            (17,3)        (7,3)    138,2

EBITDA                                          388,1        277,7      39,7
Depreciation and amortization                  (131,6)      (104,4)     26,1
Operating profit                                256,5        173,3      48,0
Profit from associated companies                  0,0          0,0      n.s.
Financial income (expense) net                   (9,4)       (12,8)    (26,8)
Amortization of goodwill                          0,0          0,0      n.s.
Extraordinary income (expense) net              (24,1)        (5,8)    312,1

Income before taxes                             223,1        154,7      44,2

Income taxes                                    (75,9)       (52,3)     45,1

Net income before minority interests            147,2        102,4      43,7

Minority interests                                0,0          0,0      n.s.

Net income                                      147,2        102,4      43,7

(1) Including work in process.

Grupo Telefonica Moviles
Selected Operating Data
Unaudited figures

                                                      March                %
                                               2000          1999       Change

Cellular subscribers                      10.260.150      5.716.751      79,5
 MoviLine                                    605.424        823.396     (26,5)
 MoviStar                                  9.654.726      4.893.355      97,3

Subscribers net adds in year to date (a)   1.207.803        822.487      46,8
 MoviLine                                    (84.714)       (69.796)     21,4
 MoviStar                                  1.292.517        892.283      44,9

TSM Penetration TM (b)                         25,7%          14,5%   11,3 p.p.
Total airtime minutes, in millions (a)         4.579          2.523      81,5
Employees                                      3.540          2.990      18,4


(a) January-March accumulated data
(b) Telefonica Servicios Moviles cellular lines / 100 inhabitants

Telefonica International Group  
Consolidated Income Statement (1)
Unaudited figures                                       Euros in millions

                                          January-March        %
                                          2000   1999       Change

Income from investments                137,7     73,4         87,5
   Equity Income                        92,7     36,6        153,1
     CTC                                25,1      4,1         n.s.
     COINTEL/TASA                       25,5     26,2         (3,0)
     Telefonica del Peru                22,3     10,1        120,7
     Telesp                             17,5      8,0        118,1
     CRT Fija                              -    (12,9)       n.s.
     CRT Celular                         3,7     (3,7)       c.s.
     Telesp Celular Participacoes        0,8      1,8        (55,9)
     TeleSudeste Celular Participacoes   2,7      1,9        44,2
     TeleLeste Celular Participagoes   (0,4)      0,1         c.s.
     Publiguias                        (1,3)      0,0         c.s.
     CANTV                             (0,1)      4,0         c.s.
     Others                            (3.0)     (3,0)       (0,2) WS/FS
   Management fees                     45,0      36,8        22,3

Operating expenses                   (163,5)   (106,7)       53,1

   Net financial expenses            (112,3)     (58,9)      90,7
   Goodwill amortization              (15,7)     (16,6)      (5,9)
   Intangible assets amortization     (35,6)     (31,2)      13,7
Operating profit                      (25,8)     (33,3)     (22,7)
Divestitures and others                31,9       11,2      184,6
Other income (expense) net            (12,9)      49,6       c.s.
Taxes                                  74,2       19,3      284,9
Net Income                             67,3       46,8       43,8

(1) TISA holding income, incorporating the participation in all
    subsidiaries net income following the economic participation


Telefonica International Group
Operating data 
                                                            Figures in          
                                                           thousands

                           Lines in service              Cellular subscribers
                            % Change  Proport              % Change  Proport
                    Mar.-00   00/99    % Part.(1)   Mar.-00  00/99   % Part.(1)

Managed Operators   17.420    16,4       4.519      7.051    94,4    2.061
 CTC                 2.605    (2,1)      1.136      1.205    76,9      525
 TASA                4.135     7,5       1.125      1.221   113,4      332
 Telefonica          
  del Peru           1.706     5,7         683        750    41,3      300
 Telesp              8.751    27,9       1.540
 CETERP                202      -           26
 CRT Celular                                        1.055    79,4      387
 TeleSudeste 
  Celular Part.                                     2.001   115,2      352
 TeleLeste 
  Celular Part.                                       575   101,0       52
 Telefonica 
  El Salvador           21      -            9        167   316,1       74
 Telefonica 
  Guatemala              0      -            0         78     -         40

Financial 
Participations       2.580    (1,4)        165      4.475    68,4      302

  CANTV              2.580    (1,4)        165      1.362    94,4       87
  Telesp Celular Part.                              3.113    59,2      215
 
Total               20.000    13,8       4.684     11.527    83,4    2.363

                             Pay TV customers      
                               % Change  Proport      
                     Mar.-00   00/99    % Part.(1)  

Managed Operators     600      2,4       250   
 CTC                  266     (4,2)      116
 TASA                 
 Telefonica         
  del Peru            334      8,5       134
 Telesp             
 CETERP             
 CRT Celular          
 TeleSudeste Celular Part.       
 TeleLeste Celular Part.       
 Telefonica El Salvador         
 Telefonica Guatemala           

Financial Participations        

  CANTV               
  Telesp Celular Par  
 
Total                 600      2,4      250

(1) Lines weighted by TISA/s economic participation in each company


Telefonica Data Group
Consolidated Income Statement
Unaudited figures
                                                     Euros in millions

                                       January-March    %
                                       2000     1999   Change

Operating revenues                     154,7    121,0   27,9
Internal expend capitalized 
 in fixed assets (1)                     0,0      1,8    n.s.
Operating expenses                    (128,6)  (102,8)  25,1
Other operating income (expense) net    (0,1)     0,0    c.s.

EBITDA                                  26,0     20,0   30,0

Depreciation and amortization          (14,9)   (16,7) (10.3)
Operating profit                        11,1      3,3  230,5
Profit from associated companies         1,4     (0,0)   c.s.
Financial income (expense) net          (0,6)    (0,7) (18.5)
Amortization of goodwill                (0,9)     0,0    c.s.
Extraordinary income (expense) net      (0,0)     0,0    c.s.

Income before taxes                     11,0      2,6  326,2

Income taxes                            (4,3)    (1,0) 332,3

Net Income before minority Interests     6,7      1,6  322,3

Minority interests                       0,0      0,0    n.s.
Net income                               6,7      1,6  322,3

(1) Including works in process



Telefonica Data Group
Operating Data
                                            March               %
                                       2000      1999         Change

Connections (dedicated ports)        154.277    107.033        44,1
IP Networks (switched ports)         107.066     32.340       231,1
Employees                              1.030        648        59,0



Telefonica Media Group
Consolidated Income Statement (1)
Unaudited figures
                                                          Euros in millions

                                               January-March           %
                                             2000            1999    Change

Profit from associated companies             (6,2)           (18,3)   (66,3)

Antena 3                                     11,0              6,1    80,9
Via Digital                                 (35,3)           (14,0)  152,8
Telefonica Servicios Audiovisuals             1,3              1,3    (0,9)
Others                                       19,0            (11,8)    c.s.

Operating expenses                          (11,9)           (10,2)   16,5

Net financial expenses                        0,3             (4,9)    c.s.
Goodwill amortization                       (12,2)            (5,3)  130,5

Operating profit                            (18,1)           (28,5)  (36,7)

Divestitures and others                       0,0              0,0     n.s.
Other income (expense) net                  (16,7)            (1,4)    n.s.
Taxes                                         8,2             11,5   (28,1)

Net Income                                  (26,5)           (18,5)   43,2

(1) Consolidated by equity method.


Terra Networks Group
Consolidated Income Statement
Unaudited figures
                                                          Euros in millions

                                                    January-March        %
                                                 2000           1999    Change

Operating revenues                               35,7           2,2     n.s.
Internal expend capitalized in fixed assets (1)   1,0           0,2     n.s.
Operating expenses                              (94,6)         (4,0)    n.s.
Other operating income (expense) net             (3,0)          0,0     n.s.

EBITDA                                          (60,9)         (1,6)    n.s.

Depreciation and amortization                   (11,6)         (0,2)    n.s.

Operating profit                                (72,5)         (1,8)    n.s.

Profit from associated companies                 (0,1)          0,0     n.s.
Financial income (expense) net                    3,6           0,0     n.s.
Amortization of goodwill                        (27,1)          0,0     n.s.
Extraordinary income (expense) net               (0,3)         (0,0)    n.s.

Income before taxes                             (96,4)         (1,8)    n.s.

Income taxes                                     25,2           0,6     n.s.

Net Income before minority interests            (71,3)         (1,2)    n.s.

Minority interests                                1,3           0,0     n.s.

Net income                                      (70,0)         (1,2)    n.s.

(1) Including work in process



Terra Networks Group
Financial Data Proforma (1)
                                                           Euros in millions

                                               January-March         %
                                            2000           1999    Change

Revenues                                    36,8           16,6    121,1
EBITDA                                     (60,9)          (1,7)    n.s.
Net Income before goodwill amortization    (44,2)          (1,7)    n.s.

Net Income                                 (70,0)         (26,5)    n.s.


(1) Include all subsidiaries as if these were managed by Terra since 1/1/99



Grupo Terra Networks
Operating Data 
                                        March 00     December 99

ISP Customers, in thousands              1.992          1.317
Page views, in millions                    705            434
Visits per month, in millions               63             38


TPI - Paginas Amarillas
Income Statement
Unaudited figures                                       Euros in millions
                                        January-March                 %
                                        2000       1999             Change

Operating revenues                      12,7       15,2             (16,9)
Internal expend capitalized 
 in fixed assets                        17,6       16,1               9,7
Operating expenses                     (27,6)     (28,0)             (1,5)
Other operating income (expense) net    (0,2)      (0,1)             92,3

EBITDA                                   2,5        3,2             (20,2)
                                   
Depreciation and amortization           (2,2)      (1,5)             46,0
Operating profit                         0,4        1,7             (78,7)
Profit from associated companies         0,0        0,0               n.s.
Financial income (expense) net           0,1        0,0               n.s.
Amortization of goodwill                 0,0        0,0               n.s.
Extraordinary income (expense) net       0,0       28,5             (99,9)

Income before taxes                      0,5       30,1             (98,4)

Income taxes                            (0,2)      (6,9)            (97,5)

Net income before minority interests     0,3       23,3             (98,7)
                                           
Minority interests                       0,0        0,0               n.s.

Net income                               0,3       23,3             (98,7)



TPI - Paginas Amarillas Group
Selected Operating Data                 
Unaudited figures                            
                                                           Euros in millions
                                                  March                 %
                                        2000                1999     Change

Books (published)
 Paginas Amarillas (Yellow pages)           3                  3         0,0
 Paginas Blancas (White pages)              0                  0         0,0
Advertising revenues
 Paginas Amarillas (Yellow pages)       373,8              608,8       (38,6)
 Paginas Blancas (White pages)        1,409,3            1,892,8       (25,5)
 Paginas Amarillas On-Line              215,0               20,4         n.s.
 Paginas Amarillas Habladas              87,3                5,8         n.s.

                                  APPENDIX


Telefonica, S.A.
Consolidated Balance Sheet
Unaudited figures
                                                            Euros in millions
                                                 March

                            Equity  %Change Impact of TISA's  Total   %Change
                          Method(1)  March  subsidiaries(2)  Group(3)  March
                              2000   00/99    2000                      00/99

Subscribed shared 
  not paid-in                  3,1     0,4       0,0           3,1       0,4
Long term assets          31.724,2     4,7  20.166,7      51.890,9      11,1

  Star up expenses           186,1    94,5       0,0         186,1      86,8
  Intangible net assets    6.229,1     5,4     927,6       7.156,7      15,1
  Fixed net assets        15.619,9   (10,7) 21.960,2      37.580,1       7,0
  Investments              9.689,1    42,6  (2.721,1)      6.968,0      32,5
                           
Goodwill on consolidation  3.506,5    75,2     766,8       4.273,3      64,7
Deferred expenses          1.014.1    62,5     255,4       1.269,5      52,7
Current assets             5.401,2    18,9   5.694,7      11.095,9      25,1

Inventories                  289,3    28,1     288,3         577,6      46,1
Accounts receivable        3.624,8    30,4   3.960,2       7,585,0      21,3
Short term Investments       792,2   (42,1)    935,5       1.727,7       9,0
Cash and banks               561,6   404,3     235,3         796,9     103,5
Others                       133,2   135,0     275,7         408,7      69,5

Assets = Liabilities      41.848,1    11,2  26.883,6      68.532,7      16,2
Shareholders' equity      14.968,2    11,9       0,0      14.968,2      11,9
Minority Interests           463,9    n.s.  11.324,6      11.788,5      n.s.
Deferred income            1.120,7    53,0       2,9       1.123,6      52,2
Provisions for risks
 and expenses              5.683,8    (4,5)  1.267,5       6.951,2      (0,7)
Accrued taxes payable        750,1    93,9     485,7       1.235,8      55,9
Long term debt            10.181,3     3,7   6.554,0      16.735,3       9,8
Short term debt including 
current maturities         3.634,1     0,4   3.121,2       6.755,3      23,6    

Interest payable             234,2    14,0     186,1         420,3      35,5
Other creditors            4.612,8    37,6   3.941,6       8.554,4      12,0

Consolidated net debt (4) 12,461,6     4,2   8.504,4      20,986,0      12,0
Consolidated debt ratio (5)   41,9% (3,3 p.p.)  41,9%         41,9%  (1,1 p.p.)


(1) Telefonica International's operating subsidiaries consolidated by the
    equity method.
(2) Impact of TASA, CTC, Telefonica del Peru, Publiguias, TLD, Telesp,          
   Telesudeste Celular Participacoes and CRT Celular full consolidation.
(3) Telefonica, S.A. including TASA, CTC, Telefonica del Peru, Publigulas, TLD, 
   Telesp, Telesudaate Celular Participacoes and CRT Celular fully              
  consolidated; other Latinamerican subsidiaries consolidated by the equity
    method.
(4) Net debt: Long term debt + Short term debt including current maturities -   
   Short term investments - Cash and banks.
(5) Debt ratio: Nat debt/(shareholders's equity + minority interest +
    Deferred Income + Accrued taxes payable + Net debt).

Telefonica, S.A.
Consolidated Income Statement
Unaudited figures                                           Euros in millions

                                           January-March

              Equity              Impact of TISA's
          Method (1)   % Change   subsidiaries (2) % Change    Total   % Change
               2000  March 00/99             2000   March   Group(3)    March
                                                    00/99               00/99
Operating
 revenues   3.577,6     12.6        2.870,1         36,6    6.447,7      22,3
Internal
 expend
 capitalized
 in fixed
 assets (4)   123,8    (17,4)          97,3         89,7      221,1       9,9
Operating
 expenses  (2.194,1)    36,3       (1.584,4)        56,2   (3.778,5)     44,0
  Supplies   (684,6)    31,8         (564,7)       319,5   (1.249,3)     91,0
  Personnel
   expenses  (770,4)    12,9         (996,7)        17,0   (1.167,1)     14,2   
 Sub-
   contracts (685,0)    95,1         (538,6)         4,5   (1.223,6)     41,2
  Taxes       (54,0)    (3,9)         (84,4)       235,3     (138,4)     70,1
Other
 operating
 income
 (expense)
  net         (30,1)   (34,7)         (40,4)      (48,8)      (70,5)    (43,6)

EBITDA      1.477,2    (11,3)       1.342,6        26,7     2.819,8       3,5

Depreciation
 and
amortization (920,7)    (9,6)        (715,2)       56,5    (1.636,0)     10,9

Operating
 profit       556,5    (14,0)         627,3         4,1     1.183,8      (5,3)

Profit from
 associated
 companies     87,5    650,2          (88,8)      431,6        (1,3)    (73,6)

Financial
 income
 (expense)
 net         (252,2)   (88,6)        (126,6)       58,2      (378,8)     13,3

Amortization
 of
 goodwill     (97,5)    62,5           21,3         c.s.      (76,2)     10,0

Extraordinary
 income
 (expense)
  net         202,6     c.s.          (76,4)      (229,0)     126,2       c.s.

Income
 before
 taxes        496,8    53,8           356,7         42,6      853,6      48,9

Income
 taxes       (174,5)  167,9          (128,7)       130,6     (303,2)    150,7

Net income
 before
 minority
 interests    322,3    25,0           228,0         17,4      550,4      21,7

Minority
 interests     23,7     n.s.         (228,0)        17,4     (204,3)      5,2

Net Income    346,0    34,2             0,0          n.a.     346,0      34,2

 Outstanding
 shares
 (millions) 3,276,8     4,5                                 3.276,8       4,5

Net income
 per Share     0,11.  28,41.                                   0,11.    28,41


(1) Telefonica International's operating subsidiaries consolidated by the
    equity method.
(2) Impact of TASA, CTC, Telefonica del Peru, Publigulas, TLD, Telesp,          
   Telesudeste Celular Participacoes and CRT Celular full consolidation.
(3) Telefonica, S.A. including TASA, CTC, Telefonica del Peru, Publigulas, TLD, 
   Telesp, Telesudaate Celular Participacoes and CRT Celular fully              
  consolidated; other Latinamerican subsidiaries consolidated by the equity
    method.
(4) Including work in process


Grupo Telefonica International
Consolidated Income Statement (1)
Unaudited figures

                                                           Euros in millions

                                        January-March                %
                                   2000               1999         Change

Operating revenues                2.987,3            2.170,5        37,6

Internal expend capitalized in
 fixed assets (2)                    97,3              51,3         89,6
Operating expenses               (1.667,1)         (1.052.6)        58,4
Other operating income (expense)
 net                                (40,3)            (78,8)       (48,8)

EBITDA                             1.377,2           1.090,4        26,3

Depreciation and amortization      (727,5)            (468,9)       55,2

Operating profit                    649,6              621,6         4,5
                                                      
Profit from associated companies     (0,1)              10,8         c.s.
Financial income (expense) net     (261,8)            (273,1)       (4,1)
Amortization of goodwill            (29,4)             (57,3)      (48,6)
Extraordinary income (expense) net    0,4              (17,5)        c.s.

Income before taxes                 358,7              284,5        26,1

Income taxes                        (57,9)             (35,9)       61,1

Net income before minority
 interests                          300,8              248,6        21,0

Minority interests                (233,5)            (201,8)        15,7

Net income                          67,3               46,8         43,8

(1)  TASA, CTC, Telefonica del Peru, Publiguias, TLD, Telesp, Telesudeste
Celular Participacoes and CRT Celular fully consolidated; other Latinamerican
subsidiaries consolidated by the equity method.

(2)  Including work in process.