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TREASURY SHARES

At 31 December 2010, the Company held 6,419,259 of its own shares, representing 1.58% of share capital post capital increases.

CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY

Good practice in corporate governance means establishing rules, principles and incentives at companies that help safeguard the interests of the company and its shareholders, and guarantee greater transparency in management.

The main measures adopted by Telecinco in the feld of corporate governance since 2006 are as follows:

Amendments of the rules governing the organisation and operation of the main management bodies. Specifcally, amendments have been made to 9 articles of the Company’s bylaws, 4 articles in its General Shareholders’ Meeting regulations and 18 articles in the Regulations of the Board of Directors. In addition, the Company drafted an Internal Code of Conduct for Gestevisión Telecinco, S.A and its Group of Companies governing their activities on the stock markets.

Revision of the composition of the Board of Directors and the board committees to increase the percentage of independent directors. Meanwhile, the Audit and Compliance Committee and the Appointments and Remuneration Committee are chaired by independent directors.

Increase in the number of women directors, refecting the network’s commitment to gender equality.

Continued detailed information on remuneration paid to directors in the Company’s annual fnancial statements, as well as in the Annual Corporate Governance Report and the Report on the Directors’ Remuneration Policy.

Verifcation of the Corporate Governance Report and the Corporate Responsibility Report by an independent auditor (PricewaterhouseCoopers).

The Company’s eforts in 2009 were acknowledged by Observatorio de Responsabilidad Social Corporativa, a Spanish corporate social responsibility organization, which rated Telecinco top among IBEX-35 companies in a study of corporate governance compliance. The network was rated highly for its eforts in transparency and the degree of compliance with the Unifed Code Recommendations.

Telecinco is aware of the social impact of its actions. This awareness is all the more important at Telecinco as a mass media, prompting the network to spearhead a variety of initiatives, such as the “12 meses, 12 causas” (12 months, 12 causes) project to make the network’s viewers more aware of a series of issues. The program entails a monthly spot and a web platform through the www.12meses12causas.com webpage, which encourages community interaction and awareness of younger people.

Internally, Telecinco also remains frmly committed to the training and career development of its employees.

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Financial Statements, Management and Corporate Governance Report. 2010