TDE.L Regulatory News (TDE)

26 May 2006 10:42

Telefonica SA26 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 Telefonica has announced at its Fifth Investor Conference being held in Valenciathat it has set as a strategic target for the year 2009 to double both earningsper share and dividend per share from the 0.91 euros and 0.50 euros reported for2005. Moreover, the Chairman of Telefonica will submit to the Board of Directors aproposal to pay an interim dividend of 0.30 euros per share from 2006 profits,to be paid in November 2006. This payment will be followed by an additional 0.30euros per share to be paid in the first semester of 2007. Finally, and until the end of 2007, the Company has decided to set a limit of1.5 billion euros and a commitment not to issue new shares to execute net newacquisitions over those already announced. Shares to be acquired to complete thecurrent buyback program will be cancelled. Madrid, May 26th, 2006 This information is provided by RNS The company news service from the London Stock Exchange