Financial parameters

Telefonica SA
28 February 2003




                            ANTONIO J. ALONSO UREBA

                          Director, General Secretary

                    and Secretary to the Board of Directors

                              TELEFONICA, S.A.






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

Today, February 28th, 2003, the Company will make a presentation of its 2002
results, primarily intended for investors and analysts. In the information to be
given in the presentation, special emphasis will be placed on the data regarding
the evolution of the key financial parameters in real terms; i.e., stripping out
the effect of currency fluctuations and changes in the scope of consolidation.
Those parameters are as shown below:




AT THE GROUP LEVEL


  • Change in Revenues: Between +5 / 8%

  • Change in EBITDA: Between +6 / 9%

  • Change in EBIT: Between +18 / 21%

  • Change in CAPEX: Between 0 / +3%

  • Change in Cash Flow (EBITDA - Capex): Between +9 / 12%


AT THE TELEFONICA DE ESPANA GROUP LEVEL


  • Change in Revenues: Between -3 / +0%

  • Change in EBITDA: Between -4 / -1%

  • Change in CAPEX: Between -15 / -20%


AT THE TELEFONICA LATAM GROUP LEVEL


  • Change in Revenues: Between +6 / 9%

  • Change in EBITDA: Between +4 / 7%

  • Change in CAPEX: Between -2 / +1%


The Company will make the complete presentation publicly available on its
website (www.telefonica.es / www.telefonica.com).








This presentation to analysts contains statements that constitute forward
looking statements of the Company or its management. These statements appear in
a number of places in this presentation and include statements regarding the
intent, belief or current expectations of the customer base, estimates regarding
future growth in the different business lines and the global business, market
share, financial results and other aspects of the activity and situation
relating to the Company.


Such forward looking statements are not guarantees of future performance and
involve risks and uncertainties. and actual results may differ materially from
those in the forward looking statements as a result of various factors.


Analysts and investors are cautioned not to place undue reliance on those
forward looking statements. which speak only as of the date of this
presentation. Telefonica undertakes no obligation to release publicly the
results of any revisions to these forward looking statements which may be made
to reflect events and circumstances after the date of this presentation.
including. without limitation. changes in Telefonica's business or acquisition
strategy or to reflect the occurrence of unanticipated events. Analysts and
investors are encouraged to consult the Company's Annual Report as well as
periodic filings made with the regulatory organisms.




                                                     Madrid, February 28th, 2003



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