Statement re Press Comment

TELEFONICA S.A.
27 July 1999

TELEFONICA DENIES THE EXISTENCE OF ANY CONTACT WITH DEUTSCHE TELECOM

Telefonica denies the information that has appeared in the German press, and has
been subsequently announced in the media in other countries, regarding the
hypothetical negotiations with Deutsche Telecom.

No member of Telefonica's management team has had any contact with that of
Deutsche Telecom with an eye to carrying out any agreement whatsoever in
relation with Telefonica's companies, business lines or assets.