Produce Investments Regulatory News (PIL)

12 Feb 2007 09:03

Telefonica SA12 February 2007 As provided in article 82 of the Spanish Stock Market Act (Ley del Mercado deValores), TELEFONICA, S.A hereby reports the following SIGNIFICANT EVENT With regard to the communication sent to the Commissione Nazionale per leSocieta e la Borsa (CONSOB) by PIRELLI & C. S.p.A., TELEFONICA, S.A. statesthe following: - TELEFONICA, S.A. has been offered the possibility of acquiring a minority stake in the capital of the Italian corporation OLIMPIA S.p.A., which is the major shareholder of TELECOM ITALIA. - Preliminary contacts have been maintained with PIRELLI, which is the major shareholder of the aforementioned company. - No agreement has been reached with PIRELLI in relation to this possible investment, its terms or possible conditions. In any case, TELEFONICA, S.A. confirms its financial commitments with respectto its investments and acquisitions publicly stated at the Investors Conferenceheld in Valencia, in May 2006. Madrid, February 12th, 2007. This information is provided by RNS The company news service from the London Stock Exchange