Stake in Via Digital

Telefonica SA
17 January 2000

                TELEFONICA REDUCES ITS STAKE IN VIA DIGITAL

Telefonica, through its wholly owned subsidiary Telefonica Media, is currently
negotiating with a financial investor in order to reduce its stake in the share
capital of Via Digital (DTS) to below 49%, so complying with the restrictions
imposed by the Spanish regulations in force regarding the share participations
in those companies that provide digital satellite television services.

Telefonica expects to reach a final agreement within next few days.