TELEFÓNICA S.A., pursuant to article 82 of the Spanish Securities Market Act (Ley del Mercado de Valores), hereby reports the following

SIGNIFICANT EVENT

Further to the Significant Event registered on July 4, 2014, in connection with the acquisition by Telefónica de Contenidos, S.A.U. of the 56% of the capital stock of Distribuidora de Televisión Digital, SA (DTS) owned by Promotora de Informaciones, S.A. (PRISA), Telefonica informs that, once the relevant regulatory authorizations have been obtained, the transaction has been completed.

The purchase price amounts to 707 million euros, of which 565.5 million euros have been paid today corresponding to 80% of the price. The remaining 20% will be paid, once the adjustments referred to in the purchase agreement are concluded, which could lead to a rise or fall in the price.

Madrid, April, 30, 2015.