Subsidiary Acquisition

Telefonica SA
20 June 2000


TERRA NETWORKS, S.A. a Telefonica subsidiary, in accordance with that stated in
article 82 of the Spanish Stock Market Law and that set forth in the Circular
Letter 14/1998 of the Spanish Securities Commission of December 28th, 1998
hereby announces the following:

On June 16th, 2000 Terra Networks, S.A. through its wholly-owned subsidiary
Telefonica Servicios y Contenidos por la Red, S.A. signed a contract of sale and
purchase of participations with the Foundations Isaac Albeniz and Perez de Leon,
and the company Delfinus I&C, S.L. by which Telefonica Servicios y Contenidos
por la Red, S.A. has acquired a total of 14,400 participants in the company
IFIGENIA PLUS, S.L. in order to develop software and provide digital content for
Internet in the sectors of education, culture and art.  As a consequence,
Telefonica Servicios y Contenidos por la Red has purchased 100% of the
participations in the aforementioned company, in which up until now it held 10%.