ENDESA Cuts Its Electricity Interruption Time by 35% in July

ENDESA (NYSE:ELE):

       --  The Company significantly improved the quality of supply
            in the mainland markets of Andalusia, Aragon and
            Catalonia, where the system average interruption duration
            indices (SAIDI) improved by 49%, 44% and 18%,
            respectively.

       --  YTD, ENDESA's SAIDI stands at 1:19 for all of Spain, 15%
            lower than in 2004.

       --  The improvement bears out the Company's investment
            efforts, with Euro 2,000 million having been spent on its
            Spanish distribution business in 2004-2005.

   ENDESA's (NYSE: ELE) system average interruption duration index
(SAIDI) fell 35% yoy in July, to nine minutes. Vast improvement was
made in the SAIDI for its operations in Andalusia, Aragon and
Catalonia, with decreases of 49% (12 minutes), 44% (7 minutes) and 18%
(6 minutes), respectively.
   In the year so far, ENDESA has lowered its SAIDI for Spain by 15%.
   This improvement underscores the Company's investment efforts in
the areas where it offers its services. In light of the significant
growth in electricity demand since 2002 - well above both the national
average and topping forecasts - ENDESA spent more than a billion uros
in 2004 on various projects and initiatives to enhance its Spanish
electricity distribution infrastructure. For 2005, ENDESA has
earmarked more than Euro 1 million of investment on distribution as
part of its 2005-2009 Strategic Plan, which entails Euro 10.3 billion
of investment in Spain and Portugal.
   The investments, part of ENDESA's commitment to providing
excellent service quality, have been greatest in Catalonia and
Andalusia, with Euro 409 and Euro 407 million, respectively,
representing a combined 77.3% of the total planned investment in
distribution. Investment totaled Euro 96 million in Aragon, Euro 71
million in the Balearic Islands and Euro 72 million in the Canary
Islands.
   The sharp annual increase in investment in distribution has helped
ENDESA considerably to rollout its plans for enhancing the electricity
distribution networks in Andalusia, via the Alborada Plan (2004-2005)
and in Catalonia, via the Tramuntana Plan (2004-2006), as well as
undertake a series of initiatives in Aragon and in the Balearic and
Canary Islands.
   These investment projects mark a further step in ENDESA's
commitment to considerably enhance and enlarge its Spanish
distribution grid, in which it invested Euro 2,970 million between
1999-2003, according to figures from UNESA.