TDE.L Regulatory News (TDE)

3 May 2006 13:29

Telefonica SA03 May 2006 Telefonica S.A., as provided in article 82 of the Spanish Stock Market Act (Leydel Mercado de Valores), hereby reports the following SIGNIFICANT EVENT Pursuant to the resolution adopted by the Board of Directors of Telefonica, S.A.at its meeting held on February 28th, 2006, we hereby inform all shareholdersthat on May 12th, 2006 the Company will pay an interim dividend from 2005 netincome of a fix gross amount of 0.25 euros for each Company share issued, incirculation and carrying entitlement to this dividend. This payment, inaccordance with the applicable tax legislation, will be made as follows: Gross dividend Withholding tax rate (15%) Net dividend (Euros per share) (Euros per share) (Euros per share) 0.25 0.0375 0.2125 The payment of this dividend shall be executed from May 12th, 2006 by BancoBilbao Vizcaya Argentaria, S.A., through the participating entities in Iberclear(Sociedad de Gestion de los Sistemas de Registro, Compensacion y Liquidacion deValores, S.A.), the Spanish securities registrar, clearing and settlementcompany. Madrid, May 3rd, 2006 This information is provided by RNS The company news service from the London Stock Exchange