Debentures-Partial redemption

Telefonica SA
10 March 2004


                            ANTONIO J. ALONSO UREBA

                          Director, General Secretary

                    and Secretary to the Board of Directors

                              TELEFONICA, S.A.




TELEFONICA,S.A., in accordance with that stated in article 82 of the Spanish
Stock Market Act (Ley del Mercado de Valores) hereby announces the following:


On April 20th, 2004 and in compliance with the conditions stated in the
Prospectus for the Debentures Issue 'October 2004 C' (ISIN code number
ES0278430907), registered with the Spanish National Securities Market Commission
(Comision Nacional del Mercado de Valores) on September 30th, 1993 will be
partially redeemed the 115,200 debentures of the issue through the repayment of
the 50% of their nominal value of Euros 600.01 each.


                                                        Madrid, March 9th, 2004




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