Telefonica, S.A. Successfully Completes Tender Offers for Shares and ADSs of Compania de Telecomunicaciones de Chile S.A.

Madrid, Spain, November 3 (ots/PRNewswire) -

Telefonica, S.A. ("Telefonica"), the international
telecommunications group, today announced it successfully completed
its tender offers for the outstanding Series A and Series B Shares of
common stock and American Depositary Shares ("ADSs") of Chilean
telecommunications provider Compania de Telecomunicaciones de Chile
S.A. (the "Company") not already owned by Telefonica and its
affiliates.

The tender offers were made through Telefonica's indirectly
wholly owned subsidiary, Inversiones Telefonica Internacional Holding
Limitada ("Purchaser," and together with Telefonica, the "Bidders").
The Bidders made a tender offer in Chile for Shares of the Company
and a concurrent tender offer in the United States for Shares held by
U.S. holders and for ADSs. Each ADS represents four Series A Shares
of the Company. The Chilean and U.S. offers, each of which commenced
on September 17, 2008, expired at 11:00 p.m., New York City Time, on
October 30, 2008 and at 12:00 midnight, New York City Time, on
October 31, 2008, respectively.

Based on preliminary information, a total of 344,838,735 Shares
have been tendered pursuant to the tender offer in Chile and a total
of 37,875,741 ADSs (including 203,152 ADSs subject to guarantees of
delivery) have been tendered pursuant to the tender offer in the
United States, which, together with the Shares tendered pursuant to
the tender offer in Chile, represent an aggregate of 496,341,699
Shares.

All Shares and ADSs tendered in the tender offers will be
accepted for payment on November 4, 2008, pursuant to Chilean
practice.

Prior to the completion of the tender offers, Telefonica and its
affiliates owned 44.9% (429,733,011 of the outstanding Shares of the
Company), directly or in the form of ADSs. Upon purchase of the
Shares and ADSs (including ADSs subject to guarantees of delivery)
pursuant to the tender offers, Telefonica and its affiliates'
ownership in the Company will increase to 926,074,710 Shares
(including those represented by ADSs) or approximately 96.75% of the
total outstanding Shares, which will leave 31,082,375 Shares
(including those represented by 2,996,139 ADSs) held by parties other
than Telefonica and its affiliates.

A Schedule TO/13E-3 and a Schedule 14d-9, each as amended, have
been filed with the Securities and Exchange Commission (the "SEC")
and are publicly available on the SEC website (www.sec.gov).
Shareholders are encouraged to read these documents for important and
more detailed information regarding the U.S. Offer.

ots Originaltext: Telefonica, S.A.
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Edward McCarthy of Telefonica, S.A., +1-212-493-6952