Telefónica Reshuffles Top Management

MADRID -- The personal decision by the outgoing Chief Operating Officer of Telefonica S.A., Julio Linares, to terminate his executive responsibilities with the Company after more than forty years of continuous service has led the Company’s Executive Chairman, César Alierta, to propose to the Board a number of changes to senior management in order to set up an organisational structure which will be stable over time and ready to compete internationally with guaranteed success in a highly demanding environment.

The Board of Directors of Telefónica S.A., meeting today in an extraordinary session, unanimously decided to approve the proposal by the President and accordingly to appoint José María Álvarez-Pallete as the new Chief Operating Officer (COO) of the company. Mr Álvarez-Pallete had until now been in charge of operations in Europe. To replace him in his position as the head of this region, Eva Castillo, until today a member of the Board of Directors of the Company, has been appointed Chairwoman and CEO of Telefónica Europe, while maintaining her position on the Board of Telefónica S.A.

Also, Santiago Fernández Valbuena, Chairman and CEO of Telefonica Latinoamérica, has been co-opted, while maintaining his current executive responsibilities, to the Board of Telefónica S.A., in substitution of Sir David Arculus, who is being replaced for personal reasons.

Julio Linares, whom the entire Board would like to thank for his loyalty and effectiveness during his many years of dedication to the company, will continue on the Board as Third Vice President, in a non-executive capacity.

The Board also approved the appointment of Eduardo Navarro, Director of Strategy and Alliances of the Company, as a member of the Executive Committee of Telefónica.

Telefónica SA (NYSE: TEF)