Award of License

Telefonica SA
7 December 2000


             TELEFONICA MOVILES WINS UMTS LICENSE IN SWITZERLAND

*  With the third-generation licenses it has won in Spain, Germany, Italy,
   and Switzerland, Telefonica Moviles has a potential market of more than 
   200 million inhabitants in Europe.

*  Switzerland is one of the European markets with the best perspectives
   for UMTS services, given its high per capita income, its balanced 
   distribution of wealth, the presence of a large number of multinational
   companies and the strong interest in services with high technological
   content.


Madrid, December 6, 2000 - Telefonica Moviles today won one of the four licenses
for third generation UMTS mobile telephony awarded at auction in Switzerland.

Telefonica Moviles, through its affiliate Telefonica InterContinental, was
awarded a license for a total spectrum of 2X15 MHz and an additional block of
5MHz of unpaired spectrum, for a price of 50 million Swiss francs (around EUR
33.1 million).

With this license, Telefonica Moviles has a potential market for its future UMTS
services of close to 200 million people in Europe, given the company's presence
in Spain, Germany, Italy, Austria and now, Switzerland.

Telefonica Moviles plans to start commercial operations in Switzerland in the
year 2002. It will develop a strategy of offering voice services and unique,
high-quality content that will mark a difference with the rest of the
competitors.

Switzerland has a population of 7.2 million, the highest per capita income in
Europe and a very balanced distribution of wealth, making it one of the most 
attractive cellular phone markets in Europe. The penetration rate for mobile
phones is around 50%, and is expected to exceed 80% before 2010. The presence of
a large number of multinational companies and the great interest in services
with high technological content give the Swiss market one of the best
perspectives in Europe for the development of UMTS services.

The other three licenses in Switzerland have been awarded to the GSM mobile
companies already operating in the country: diAx, Orange and SwissCom.

Telefonica Moviles, S.A., which services a market of 350 million inhabitants, is
one of the world's ten leading companies in mobile telephony, and inspires to
become one of the top five.

It is a leader in the growing markets of Spain and Latin America and is pursuing
a policy of expansion in Europe and the Mediterranean Basin. At the end of
September, through its operators in Spain, through its operators in Spain,
Brazil, Argentina, Peru, Mexico, Guatemala, El Salvador and Morocco, Telefonica
Moviles had some 22 million customers, an increase of 77.5% from a year before. 
Telefonica Moviles also manages mobile phone companies in Chile and Puerto Rico
which are not part of its consolidated group.

Telefonica Moviles shares are traded on the Spanish stock markets and on the 
New York Stock Exchange in New York, under the symbol TEM.  


For further information contact:

Investor Relations
Maria Garcia-Legaz Ponce
Tel: [phone]
Fax: [phone]
[e-mail]