agreement sell radio operator

Telefonica SA
23 November 2004




                            ANTONIO J. ALONSO UREBA
                          Director, General Secretary
                    and Secretary to the Board of Directors
                              TELEFONICA, S.A.


Further to the notification registered on November 18th, 2004 under RNS No.
3958F, Telefonica, S.A., as provided in article 82 of the Spanish Stock Market
Act (Ley del Mercado de Valores), hereby


                                    NOTIFIES


Pursuant to the agreement in principle reached between the parties, on November
22nd, the ATCO Group, subsidiary of Telefonica de Contenidos, S.A., entered into
an agreement to sell 100% of the share capital of the companies Radio
Continental LS4, S.A. and Radio Estereo, S.A., radio operators in Argentina of
the Telefonica Group, to the PRISA Group member companies, GLR Services Inc. and
Corporacion Argentina de Radiodifusion, S.A., for 10.5 million US dollars.


Execution of the transaction is subject to administrative authorisation by the
Argentinean authorities.






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