The annual draw, known as "El Gordo", or The Fat One, is billed as the richest in the world.

A total of $1.2 billion in winnings went to thousands of lucky ticket holders throughout Spain.

Millions of television viewers watched as schoolchildren sang the winning numbers in a ceremony lasting four to five hours.

The BBC's Joanne Episcopo reports on El Gordo's winners. (1'28")

Residents in Granada celebrated on the city streets, popping champagne and waving their tickets bearing the winning 43728.

"I have been dreaming of this moment all my life," said a young woman who won the equivalent of $250,000 for her portion of a winning ticket.

She said the money will pay for a Christmas vacation and gifts that her family would not have been able to buy otherwise.

Each ticket series is divided into 130 tickets that are in turn split into 10 3,000-peseta ($20) shares and some of these are further sub-divided, ensuring that the exact number of winners is unknown.

A record-breaking 250 billion pesetas ($1.7 billion) worth of tickets were sold this year, five percent up on 1996 and averaging out at approximately 6,500 pesetas ($45) per Spaniard.

El Gordo winners in Granada celebrate

Most Spaniards share tickets with family, friends and co-workers, so lottery windfalls ripple through whole communities.

In Granada, Francisco Gamarra's presents of lottery tickets to the staff at his hairdressing salon suddenly turned from a goodwill gesture into a $124,000 Christmas bonus.