Description of the Share Capital

The share capital of Telefónica, subscribed and fully paid up, amounted to 4,551,024,586 euros, and it is divided into 4,551,024,586 shares of one euro face value each.

All the Telefónica shares are ordinary, of a sole class, and are represented by account entries and grant the same rights and obligations to all shareholders. Telefónica's shares do not have any accessory liabilities whatsoever. Likewise, the Articles of Association of Telefónica contain no provision on privileges, special powers or rights arising from the holding of shares. Moreover, there is no statutory provision articles that impose any restriction or limitation on the free transfer of the Telefónica's shares.