PresentationPresentation toto AnalystsAnalysts March 17th, 2000 Safe Harbour

This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and the global business, market share, financial results and other aspects of the activities and situation relating to the Company . Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward looking statements as a result of various factors. Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. Telefónica undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Telefónica´s business or acquisition strategy or to reflect the occurrence of unanticipated events. Analysts and investors are encouraged to consult the Company´s Annual Report on Form 20-F as well as periodic filings made on Form 6-K, which are on file with the United States Securities and Exchange Commission.

1 ¾Telefonica’s Vision ¾Why Endemol ¾Why Telefónica ¾Transaction Description ¾Financial Impact ¾Conclusions

2 Telefónica’sTelefónica’s StrategicStrategic VisionVision

„ Telefónica has developed a network of platforms suitable for the packaging and Fixed Mobile distribution of a telephony telephony broad range of content „ Two years ago, Cable anticipating the Cable convergence of these platforms and the Broadband increasing value of content, Telefónica started to invest in media DTH Internet „ Today Telefónica announces another Open TV important step to strengthen these creative capabilities

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 3 TelefónicaTelefónica AnnouncesAnnounces thethe AcquisitionAcquisition ofof EndemolEndemol

Core shareholders committed to deliver majority of Endemol shares

Tender offer for the remaining shares (free float)

Leading Leading Payment Payment independent communications through content developer, & media group exchange of producer & distributor shares

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 4 Endemol,Endemol, aa LeadingLeading IndependentIndependent ContentContent Developer,Developer, ProducerProducer && DistributorDistributor

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 5 Endemol’sEndemol’s PresencePresence inin NewNew MediaMedia RepresentsRepresents aa UniqueUnique OpportunityOpportunity forfor TelefónicaTelefónica

ƒ Stronger brand positioning and customer loyalty

Open TV Pay TV Internet Mobile phone ƒ Increasing returns through ƒ Information about advertising, the programs commerce ƒ Additional content ƒ Wide offer of ƒ Repackaging in ƒ Engagement of and premium content with thematic and ƒ Viewers’ viewers services interaction outstanding premium channels ƒ Advertising and commercial ƒ Viewers ƒ Community commerce performance building engagement ƒ Game shows ƒ 24 hour “reality” through TV catalogue solutions shows ƒ Additional revenue sources

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 6 Endemol’sEndemol’s IntrinsicIntrinsic ValueValue Hard assets „ One of the largest format library in the world with over 400 titles Products „ Products with high commercial orientation „ Leading multi-platform content with a strong emerging record in interactive media Various programs Soft assets Soft assets genres for „ Proven capacity to adapt formats to several markets multiple markets „ Valuable pool of creative talent and platforms: „ World class production know-how Skills „ Successful acquisition strategy and execution ƒ Game shows „ Vast experience in content commercialization ƒ Variety „ Ability to develop and exploit interactive products Sitcoms ƒ Soaps „ Recognized as a global content leader ƒ Drama Brand and ƒ Drama „ Strategic presence in key European markets presence ƒ Leisure shows „ Evolving operations in other markets ƒ Talk shows „ Strong relationships with: ƒ Music „ Creative talent ƒ Sport Relationships „ Content producers „ Broadcasters

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 7 Endemol’sEndemol’s StrongStrong PresencePresence inin KeyKey MarketsMarkets Endemol is the leading independent TV producer in the Netherlands, Spain, Italy, PortugPortugal,al, Poland & Scandinavia and in the top 3 in the remaining countries where it operates

Belgium Scandinavia Poland „ Endemol Belgium „ Metronome „ Endemol Neovision United Kingdom

„ GMG Endemol Germany

„ Endemol France Entertainment „ Groupe ASP Productions „ Non Fiction Endemol ¾„ „ GAT „ Flamingo Film Portugal „ Meta¾„ „ ¾Helkon¾„„ „ Endemol Portugal The Netherlands „ John de Mol Producties Spain „ Joop van den Ende TV „ Gestmusic Producties Endemol „ Rene Stokvis „ Zeppelin Producties Italy Producties „ Telepolis.com „ SBSnet.nl „ Medicinatv.com „ Aran South Africa „ Endemol South Africa

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 8 Endemol’sEndemol’s SuccessfulSuccessful TrackTrack RecordRecord

„ 10,335 hours of Endemol production broadcast in 1998/99 (+48% vs 1997/98)

„ 294 different program series broadcast in 1998/99 Endemol has a (+43% vs 1997/98) track record of producing programs which „ Of these 294 program series 76% were formats outperform in developed in house (216 in 1997/98) rating terms

„ 125 completely new programme series developed and broadcast in 1998/99 (+50% vs 1997/98)

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 9 Endemol’sEndemol’s AcceleratedAccelerated GrowthGrowth PathPath

Revenues Million Euros CAGR 95-99 15% +10%-15% 416 437 367 292 213 In the year 2000/2001 1995 1996 1997 1998 1999 2000e revenues and

Net Profit net profit are Million Euros CAGR 95-99 expected to +15%-20% 16% double those of 38 42 1996 28 33 20

1995 1996 1997 1998 1999 2000e

Source: Endemol’s annual report, fiscal year from August to July.

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 10 Endemol’sEndemol’s FutureFuture DevelopmentDevelopment withinwithin thethe TelefónicaTelefónica GroupGroup

European strategy supported by Telefónica’s financial strength, skills and relationships Full support for Endemol to Further entrance to maximize the Endemol’s Spanish & Portuguese development of creative speaking markets where its unique Telefónica already has a creative talent leading presence capabilities

Leverage the multi- platform network of the Group to move towards convergence

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 11 Endemol’sEndemol’s SignificantSignificant RoleRole withinwithin thethe GroupGroup

Endemol’s value sources will be exploited throughout the companies in the Group to Móviles Móviles strengthen Telefonica’s overall competitive position in the world of convergence and Other companies in the broadband Group: Telefónica B2B, Atento, Fixed telephony companies, ...

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 12 Endemol’sEndemol’s FitFit withwith TelefónicaTelefónica MediaMedia StrategyStrategy

Endemol Value for Telefónica Media Hard assets „ Access to a wide content and Products format offer for its networks

Soft assets „ Transfer of creative talent, world The acquisition of class production and management Endemol can significantly and Skills skills significantly and „ Take advantage of Endemol’s rapidly strengthen successful acquisition strategy of Telefónica Media small and medium media players content area in its core markets Brand and „ Increase Telefónica Media presence negotiation power

„ Broaden access to creative talent Relationships „ Create and strengthen relationships with other media players

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 13 Endemol’sEndemol’s FitFit withwith TerraTerra NetworksNetworks GlobalGlobal StrategyStrategy Endemol Value for Terra Networks Hard assets „ Access to a wide content and format offer Products to add value for its users „ Improve Terra negotiation position with global and European players Soft assets Endemol’s rich „ Leverage on the ability to adapt content to content pool as several local markets well as its broad „ Take advantage of interactive production Skills presence in capabilities Europe significantly enhance Terra’s „ Accelerate Terra´s presence in European Brand and global offer markets global offer presence

„ Broaden access to creative talent Relationships „ Create and strengthen relationships with local broadcasters and Internet players

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 14 Endemol’sEndemol’s FitFit withwith TelefónicaTelefónica MóvilesMóviles StrategyStrategy Endemol Value for Telefónica Móviles Hard assets „ Access to a wide content and format offer Products to add value for its users „ Possibility for customers to engage in real time with TV and Internet shows Soft assets Endemol’s multi- platform content „ Leverage on the ability to adapt content to exploited in several local markets Telefónica Móviles Skills „ Take advantage of multi-platform current and future production capabilities markets will help it to provide higher value to its clients „ Improve Telefónica Móviles presence in Brand and „ Improve Telefónica Móviles presence in presence European markets „ Increase possibilities for partnerships „ Broaden access to creative talent Relationships „ Create and strengthen relationships with local and global players

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 15 OfferOffer PricePrice andand ValueValue

ƒ Offer Price: €158 per Endemol share

ƒ Offer Value: € 5.5 billion based on 34.7 million fully diluted Endemol shares

ƒ Premium: 54% over the average price of Endemol over the last nine trading days

ƒ Exchange Ratio: A/B Approximately 5.58 ƒ Downside Protection Telefónica nº of shares: Endemol shareholders will get downside protection for the first 10% and this will place a cap on the number of shares to be issued by Telefónica.

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 16 ConditionsConditions andand timetabletimetable

Considerations ƒ Share exchange ƒ 100% new Telefónica shares

Management and Corporate Governance ƒ John de Mol to become Chief Creative Officer and participate in new creative committee of Telefónica ƒ Non executive board to comprise three members from Telefónica and two members from Endemol ƒ Arrangements to retain Endemol key management employees for the long term

Tentative Timetable ƒ Announcement Friday, March 17th, 2000

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 17 TheThe AcquisitionAcquisition ofof EndemoEndemoll PlacesPlaces TelefónicaTelefónica inin aa PrivilegedPrivileged PositionPosition toto ConsConsolidateolidate itsits LeadershipLeadership asas aa GlobalGlobal PlayerPlayer inin thethe MediaMedia andand CommunicationCommunication WorldWorld

Belgium Scandinavia „ Endemol „ Endemol Poland „ Endemol United Kingdom „ Endemol

France „ Endemol EE.UU. „ Telefónica Germany Puerto Rico Spain „ Endemol „ Telefónica „ Telefónica Colombia „ Endemol „ Telefónica Austria Portugal „ Telefónica Venezuela „ Telefónica „ Telefónica „ Endemol

Peru The Netherlands „ Telefónica „ Endemol Morocco Italy Argentina „ Telefónica „ Telefónica „ Telefónica „ Endemol Brazil South Africa Chile „ Telefónica „ Endemol „ Telefónica

Telefónica’s Vision Why Endemol Why Telefónica Transaction Description Financial Impact Conclusions 18 19