2008 ENVIRONMENTAL PERFORMANCE REVIEW

In 2008 Telefónica made a major effort to standardise environmental management criteria across the Group. Accordingly, our global EMS includes a range of specific standards.

In addition, each country continued with the ordinary management of environmental issues, and, overall, the standard of environmental commitment and organization improved.

The following diagram depicts the performance of all Telefónica's companies as regards the environment. A highlight was the strong performance put in by the fixed telephony operation in Peru, which won ISO 14001 certification for its wireless network EMS. The Argentina mobile and Colombia fixed businesses made considerable progress with respect to 2007.

The aim of introducing the global Environmental Management System and the Environmental Performance Index is to convert these isolated instances of strong progress into the general rule across the Group, and to assure persistently effective performance.

In 2009, Telefónica will report each company's environmental situation on the basis of the EPI.