INFORMATION ABOUT CORPORACIÓN RTVE

In fulfillment of that stipulated by Act 17/2006, dated on June 5th, on State-Owned Radio and Television it is incorporated the Corporación de Radio y Televisión Española, S.A, Corporación RTVE, a mercantile company which takes the legal status of a public limited company in its management, and which shall operate independently of the Government and the General State Administration.

The incorporation of the Corporación para la Radio y Televisión, S.A. was formalized on September 12th, 2006, after it was approved by the Council of Ministers on that month, which also authorized the incorporation of the companies in charge of operating the public service, the Sociedad Mercantil Estatal Radio Nacional de España, S.A. and the Sociedad Mercantil Estatal, Televisión Española, S.A., as well as the Articles of Association of the Corporación, in keeping with that stipulated in the above Act. The first Universal General Meeting of the Corporación took place on the same day of the execution of the Deed of incorporation, on Tuesday September 12th, 2006.

The Corporación RTVE and the companies which provide the public service started their respective operations on January 1st, 2007. That very day, the state-owned Ente RTVE and the companies TVE, S.A. and RNE, S.A., went into dissolution-liquidation, in accordance to that stipulated in the Fifth Transitory Provision of Act 17/2006 on the State-Owned Radio and Television.

Purchase by SEPI of shares of the Corporación RTVE:

The contribution of assets and liabilities which the state-owned Ente made to Corporación RTVE, provoked a capital increase for the amount of 1,510 Million Euros, for 302 Million shares, which was subscribed in its totality by the Ente. As a result of this capital increase, the Ente became a majority shareholder of the Corporación with 99.9% of the social capital. When the Ente went into liquidation, the divestment and termination of the assets, rights and liabilities which made up its shareholders' equity began.

The Council of Ministers dated on March 9th, 2007 authorized SEPI to purchase all the shares of the Corporación to the State-Owned Ente RTVE in liquidation. The sale and purchase of the shares shall involve a number of transactions, depending of the financial requirements of the Ente and the resources which SEPI has at its disposal. This sale and purchase of shares will be made according to the net accounting value which those shares have in the Accounts of the Ente in liquidation at the time of each divestment.

SEPI purchased shares which represent 18.79% of the social capital of the Corporación, for the amount of 225 Million Euros.

Agreement with the trade unions:

On July 12th, 2006, with the objective of making possible that the Corporación might start its activity at the beginning of 2007, took place the signing of the Agreement for the Creation of the Corporación RTVE, which was subscribed by RTVE, SEPI and by the trade unions UGT, CCOO, APLI and USO, which establishes specific agreements basically in the following issues: Territorial and functional structure, In-house production, Orchestra and Chorus, Documentation Fund, Externalization and multimedia and interactivity, Measures on Employment (decoupling measures for workers older than 52 years and voluntary severances system for younger workers), Determination of the number of surplus workers and their inclusion into the Compulsory Special Redundancy Procedure (ERE), Working terms and conditions for the new Corporación, Criteria for the inclusion of the Ente's workforce into the new Corporación and Adaptation of the structure and the rights of trade union representation.