Result of AGM

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

SIGNIFICANT EVENT

The Annual General Shareholders' Meeting of TELEFÓNICA, S.A. held at first call today, June 2nd, 2010, with the participating of 90,157 shareholders, present or represented, holding 2,583,383,562 shares representing 56.6 % of the share capital of the Company, has approved by an absolute majority of votes (an average of 92.47 % of the shares at the Meeting placed votes in favor) all the draft resolutions submitted by the Board of Directors for deliberation and vote by the General Shareholders' Meeting.

The full text of the draft resolutions is attached to this report.

 http://www.rns-pdf.londonstockexchange.com/rns/9684M_-2010-6-2.pdf

Madrid, June 2nd, 2010