Directorate Change

Telefonica SA
26 July 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. Luis Lada Diaz from his position on the Board
(also member of the Service Quality and Customer Service Committee). The Board
of Directors has thanked Mr. Luis Lada for his work and dedication.


Likewise, the Board has agreed, preceded by the relevant favourable report from
the Nominating, Compensation and Corporate Governance Committee, the appointment
of Mr. Jose Maria Alvarez-Pallete Lopez as executive Director.


Madrid, July 26th, 2006





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