O2's holding in Airwave O2

Telefonica SA
15 December 2006





TELEFONICA, S.A.('TELEFONICA') hereby submits the following



                                     NOTICE





TELEFONICA  has today announced its intention to explore all strategic
options in relation to O2's holding in the share capital of Airwave O2 Ltd.,
including total or partial disinvestments in that company (sale). To that end
TELEFONICA has appointed JP Morgan Cazenove.



Madrid, December 15th , 2006




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