Telefonica Concludes RestructuringTelefonica Concludes Restructuring

MADRID, Spain -- Telefónica’s Board of Directors Commitee for Appointments and Compensation, at the petition of the Group’s chairman, has agreed to put forward Joaquín Agut Bonsfills as CEO of Endemol and, as a consequence of the vacancy he leaves, to propose Joaquín Faura Batle as CEO of Terra.

At the same meeting, the Committee also agreed to appoint Luis Blasco Bosqued as General Manager of Telefónica Contenidos. Luis Abril Pérez will become General Manager of Corporate Communications. Alberto Horcajo Aguirre has been named head of Resources –he remains CEO of Atento- upon the resignation of Antonio Palacios Esteban, who the committee expressly thanked for his years of service and dedication to the Group. Finally, a new Subsidiaries Area has been created, which will be overseen by Guillermo Fernández-Vidal.

This concludes the restructuring of Telefónica Group’s organisational structure which now looks like this:

Three core businesses:

A new Subsidiaries area, which encompasses TPI, Endemol and Telefónica Contenidos.

A simple and lean Corporate Centre, comprising just five areas:

Francisco de Bergia remains General Manager, Assistant to the Chairman, with his previousresponsibilities.

These changes mark the end of the restructuring begun in September aimed at adapting the company’s structure to bring this into line with an increasingly demanding industry, simplifying it and focusing more on servicing customers and promoting the Group’s vision.

Telefònica SA