Extraordinary General Meeting 2008

• Mr. Juan Luis Cebrián, Chairman of the Executive Committee of Prisa; Mr. Manuel Polanco, a new member of this Committee; Establishment of an International Advisory Committee.

• Mr. Ignacio Polanco transmitted a message of serenity and confidence, stressing that the strategic vision of the company and its management ensures that Prisa will emerge strengthened from this crisis.

• Mr. Juan Luis Cebrián stressed that the merger with Sogecable will contribute to the strengthening of the Group through synergies and savings.

• The CEO highlighted the profitability of all the businesses of the group, the soundness of its numbers and its ability to generate cash.

• Mr. Cebrián recalled that the debt situation is the result of the extraordinary growth of the company that has tripled in size since it went public.

PRISA held today an Extraordinary General Meeting to approve the merger of Sogecable, and to give the Board of Directors the authority to recapitalize the Group and restructure its debt.

Mr. Ignacio Polanco conveyed a message of serenity and confidence. He stressed that the company is doing well, facing the crisis and it continues being extremely profitable thanks to its positions in America and Spain, the diversification of its businesses, the trust of its clients and users and the quality of its professionals.

Mr. Cebrián noted that talks with Canal + France, as the leader of a consortium that includes Telefónica, continues in progress, before opening formal negotiations for the sale of the Pay TV business. He stated that the Extraordinary General Shareholders was called to give the Board of Directors the authority to recapitalize the Group and restructure its debt.

Regarding the merger of Sogecable, Mr. Polanco said that acquiring the majority of its capital was necessary to shield the position in this company and ensure its control, which was essential for the development of the group activities in the audiovisual sector. The merger between Sogecable and PRISA culminates this project.

He added that a reinforcement of the equity was needed due to the current economic situation and the capital structure of the group. The interest of shareholders will be considered in this process and an adequate structure of capital will be guaranteed. The reference shareholders that controls Prisa today will continue to ensure stability, though new investors may join this project.

The Chairman highlighted the strong commitment to strengthen Corporate Governance. For this reason, the Board of Directors, unanimously supported the appointment of Mr. Juan Luis Cebrián as chairman of the Executive Committee of PRISA. He also wanted to highlight the work of the CEO as a top executive of the group and pointed out the influence that its management and personality have had on the development of the Group since it was founded.

The CEO said that the group strategy is based on the development and growth of the audiovisual business and expansion in the Portuguese-speaking markets, after the success of the education business in Brazil. The group is focused on content production, relying on a strong distribution network and maintaining the objective of being global as it happened in the radio business.

Mr. Cebrián pointed out that the current debt situation is the result of the xtraordinary growth of the company during this decade. The Group has nearly tripled in size since it went public in 2000. Since then, PRISA has invested nearly €4.9 billion in acquisitions without any reinforcement of its equity, which means that the current level of debt is not structural and responds to the need of reorganize its audiovisual assets.

Finally, he stressed that media companies need the disappearance of obstacles and unnecessary government interventions, such as implementing the VAT 0 for the newspapers, coordinating education policies, completely eliminating advertising funding in national and local public TV; limiting their budget abuses in the purchase of TV rights and introducing transparency in the marketing of sports broadcasts.