After the Special Meeting of Shareholders of Compania De Telecomunicaciones De Chile S.A., Telefonica Announces that the Offers to Acquire 100% of the Shares of CTC will Proceed in Accordance with the Established Schedule

- The Chilean offer will expire at 11:00 p.m. (New York City Time) on October 30, 2008

- The U.S. offer will expire at 12:00 Midnight (New York City Time) on October 31, 2008

On October 28, 2008, a Special Meeting of the Shareholders was held by Compania de Telecomunicaciones de Chile ("CTC") to approve a Bylaw Amendment to remove the current ownership restriction that limits to 45% the percentage of CTC shares that may be owned or voted by a single Shareholder. The Bylaw Amendment was approved by approximately 85.9% of Shareholders. Accordingly, Telefonica has announced its intention to proceed with the offers to acquire the remaining 55.1% of CTC Shares that the Telefonica Group does not already own for a purchase price of Ch$ 1,100 per series A share, Ch$ 990 per series B share and Ch$ 4,400 per ADS.

Shareholders tendering shares in the Chilean offer will have to do so before 11:00 p.m. (New York City Time) on Thursday, October 30, 2008.

Shareholders and ADS holders tendering in the U.S. offer will have to tender their shares and/or ADSs before 12:00 midnight (New York City Time) on Friday, October 31, 2008.

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 (http://www.sec.gov. Shareholders are encouraged to read these documents for important and more detailed information regarding the U.S. Offer.

Web site: http://www.sec.gov

Source: Telefonica

D.F. King & Co., Inc., Bankers and Brokers Call: +1-212-269-5550; All Others Call Toll Free: 800-859-8511

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