Stmt re Telefonica Publicidad

Telefonica SA
31 August 2000


  The operation will be launched among institutional investors prior to October 
 25th.


TELEFONICA TO FLOAT BETWEEN 3 AND 3.5% OF TPI IN ORDER TO SUSTAIN ITS WEIGHT ON
THE IBEX 35

*  The cut in the stake permits TPI's free float to stand at above 40%, which   
  will therefore mean that its weight on the Ibex 35 will remain at 100% of     
 its stock market capitalisation.


Madrid, August 30th, 2000,- Telefonica is to carry out a placement operation
with institutional investors of between 3 and 3.5% of the share capital of its
subsidiary Telefonica Publicidad e Informacion (TPI), in which it currently
holds a 63% participation. Through this operation, Telefonica will sustain
TPI's weight on the Ibex 35 at 100% of its stock market capitalisation,
avoiding that this undergo a cut to 60% as a result of the new criteria
introduced by the Technical Advisory Committee for the Ibex indices. At the same
time, the operation will raise the level of liquidity of the TPI share on  the
market.

The aforementioned criteria will mean that from September 22nd, the weight of
each company on the Ibex 35 will be adapted in accordance with its free float
(floating or free trading capital), in such a way that a company whose free
float stands at below 40% will find that its weight on the index has been cut to
60% of its stock market capitalisation.

Telefonica has until October 25th to carry out this operation.

Following  the capital increases carried out recently in relation with the 3xl
split and the acquisition of the publishers Goodman Business Press, TPI
currently has a total of 368,234,331 ordinary shares of a nominal value of  0.05
euros each. TPI's shares are quoted on the Spanish Automated Continuous Market.


TPI (www.paginas-amarillas.es) is Spain's leader in the publishing and sale of
directories, information content, and advertising services, both on paper and
via Internet. Among this company's products those of particular significance are
its paper version of Yellow Pages, Online Yellow Pages, Spoken Yellow  Pages,
White Pages and Europages. In 1999, and in non-consolidated terms, TPI
registered net income of Euros 82.83 million (Ptas 13,781 million), reflecting 
a 93% increase, including the impact of extraordinary results which amounted  to
a gross figure of Euros 20.49 million (Ptas 3,409 million). Operating  revenue
stood at Euros 336.26 million (Ptas 55,949 million). Online Yellow  Pages
reflected 187% growth in revenue, which reached Euros 2.6  million (Ptas 432
million)