EGM Portugal Telecom

Telefonica SA
22 February 2007

TELEFONICA, S.A., as provided in article 82 of the Spanish Stock Market Act
(Ley del Mercado de Valores), hereby reports the following





SIGNIFICANT EVENT





TELEFONICA SA, shareholder of PORTUGAL TELECOM, SGPS, S.A. with a 9.9635%
equity stake therein, states its intention to vote, in the Extraordinary General
Meeting of PORTUGAL TELECOM to be held on March 2nd, 2007, in favour of
approving the amendments to the articles of association and the authorisations
proposed to eliminate the voting restrictions, and so that all shareholders may
express themselves without hindrance to their capacity to exercise their rights,
in the best interest of the company.



Madrid, February 22nd , 2007.






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