Dividend Payment

TELEFÓNICA, S.A. as provided in article 82 of the Spanish Stock Market Act (Ley del Mercado de Valores), hereby reports the following

SIGNIFICANT EVENT

Further to the Significant Event released on April 14, 2015 and pursuant to the resolution adopted by the Board of Directors of TELEFÓNICA, S.A., we hereby inform all shareholders that on May 12, 2015, the Company will pay an interim dividend from 2015 net income, of a fixed gross amount of 0.40 euro for each Company share issued, in circulation and carrying entitlement to this dividend. (Record Date: May 11, 2015). This payment will be made as follows, in all events subject to the provisions of the applicable tax legislation.

The payment of this dividend shall be executed from May 12, 2015 by Banco Bilbao Vizcaya Argentaria, S.A., through the participating entities in Iberclear (Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de Valores, S.A.), the Spanish securities registrar, clearing and settlement company.

Madrid, April 29, 2015