Company Profile For Telefonica S.A.

Telefonica, S.A. (Telefonica), together with its subsidiaries and investees, operates in the telecommunications, media and contact center industries. The Company is also involved in the media and contact center activities through investments in Telefonica de Contenidos and Atento. The Company operates in three business areas: Telefonica Spain, Telefonica Europe and Telefonica Latin America. In Latin America, Telefonica provides service to more than 158 million customers in Brazil, Argentina, Chile and Peru, and has substantial operations in Colombia, Ecuador, El Salvador, Guatemala, Mexico, Morocco, Nicaragua, Panama, Puerto Rico, Uruguay and Venezuela. In Europe, it has operating companies in the United Kingdom, Ireland, Germany, Czech Republic and Slovakia. In May 2008, the Company sold part of its real estate portfolio to Bohemia Real Estate Investments. On April 3, 2008, Vivo Participacoes, S.A. completed the acquisition of 53.90% of Telemig Celular Participacoes, S.A.

BRIEF: For the nine months ended 30 September 2009, Telefonica SA's total revenue decreased 3% to EUR41.72B. Net income for the period increased less than 1% to EUR5.61B. Total revenue reflects unfavorable market conditions as well as a decrease in demand for the Company's products and services. Net income for the period benefited from a decrease in personnel expense, as well as an increase in equity in affiliates income.