Re Agreement

Telefonica SA
14 May 2002


                           JOAQUIN DE FUENTES BARDAJI

                            General Vice- Secretary

                 and Vice - Secretary of the Board of Directors

                              TELEFONICA, S.A.

'TELEFONICA, S.A.', in accordance with that stated in article 82 of the
Spanish Stock Market Law hereby informs of the following:

                        SIGNIFICANT EVENT

The Board of Directors of its subsidiary 'Grupo Admira Media, S.A., Sociedad
Unipersonal', at its meeting held today has unanimously ratified the agreement
reached on May 8th, 2002 between the aforementioned company and Sogecable to
integrate DTS Distribuidora de Television Digital, S.A. (Via Digital) and
Sogecable.

The execution of the aforementioned agreement is pending the pertinent
Administrative authorizations.



                                                          Madrid, May 14th, 2002




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