Share buy-back programme

Telefonica SA
27 February 2008



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



                               SIGNIFICANT EVENT


Within the Company's shareholder remuneration policy, the Board of Directors, at
its meeting held today, has announced the launching of a new share buy-back
programme for a total amount of 100 million shares, representing close to 2.095%
of the Company's share capital. The programme will be effective during 2008 and
the first half of 2009.

The execution schedule of the programme will be conditioned to the pace of
cash-flow generation, to the share price level and to other market conditions,
and always subject to any applicable limitations established by law, regulations
or by the Company's Bylaws.





Madrid, 27 February 2008.




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