Telefonica del Peru establishes ADR program for privatization issue

Business Wire, July 9, 1996

NEW YORK--(BUSINESS WIRE)--July 9, 1996--Telefonica del Peru S.A. today established an American Depositary Receipt (ADR) program following its public offering on July 1 of about 45 million American Depositary Shares on the New York Stock Exchange (NYSE).

The company selected J.P. Morgan as its depositary for the $1.1 billion equity offering. The company's July 1 public offering marked the largest privatization offering by any Latin American country since 1993 and was the largest-ever for a Peruvian state-owned company. Each Telefonica ADS, which trades under the symbol TDP, represents ten class B shares. The company's ADSs closed today at $23.25, up $2.75 from the offering price, in NYSE trading.

Telefonica del Peru is a full-service telecommunications provider, offering fixed local, domestic, and international long-distance telephone services on an exclusive basis throughout Peru. In addition, the company offers a wide range of other telecommunications services, including cellular telephone and paging services, business communications and related services, and cable television. Telefonica is also the primary operator of Peru's public telephone system.

As of March 31, 1996, the company had approximately 1.2 million telephone lines in service. In 1995, Telefonica had revenue of $1 billion and a net income of $308.7 million, making it the largest Peruvian company, and one of the world's largest telecommunication companies outside the United States. J.P. Morgan created the first ADR in 1927 and is the world's largest ADR depositary bank in terms of ADR share and dollar volume traded.

CONTACT: J.P. Morgan & Co. Inc.

Nancy Ancowitz, 212/648-3403

William G. McBride, 212/648-9537

www.jpmorgan.com