E Debenture redemption

Telefonica SA
27 January 2005



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 February 26th, 2005 and in compliance with the conditions stated in the
Prospectus for the Debentures Issue 'February E' (ISIN code number
ES0278430675), registered with the Spanish National Securities Market Commission
(Comision Nacional del Mercado de Valores) on December 7th, 1989, the 41,669
debentures of the issue will be totally redeemed through the repayment of the
613.338% of their nominal value of Euros 300.51 each.


                                                      Madrid, January 27th, 2005



                      This information is provided by RNS
            The company news service from the London Stock Exchange