Director resignation

Telefonica SA
29 March 2006



Telefonica S.A., as provided in article 82 of the Spanish Securities Market Act
(Ley del Mercado de Valores) and in accordance with set forth in paragraph 4 of
article 6 of Royal Decree 377/1991, of March 15th, regarding the announcement of
significant participations in quoted companies, hereby reports the following



SIGNIFICANT EVENT



The Board of Directors of  Telefonica, S.A., at its meeting held today, has
accepted the resignation of Mr. Miguel Horta e Costa from his position on the
Board.



The Board of Directors has thanked Mr Miguel Horta e Costa for his work and
dedication.







Madrid, March 29th, 2006




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