ENDESA Launches the World's First Private Initiative to Make Large Scale Purchases of Emission Rights

ENDESA (NYSE:ELE):

   --  The aim is to purchase 15 million tonnes of CO2 emission
        rights by 2012, leveraging the flexible mechanisms provided
        for by the Joint Application Clean Development Mechanisms
        contained in the Kyoto Treaty.

   --  The tender process for emission trading projects is now open.
        Contracting is to be speedy, flexible, pragmatic and
        competitively priced.

   ENDESA (NYSE: ELE) has launched a pioneering global CO2 emissions
rights purchasing initiative. The target is to purchase 15 million CO2
emissions rights through to 2012 via the flexible mechanisms provided
for in the Joint Application Clean Development Mechanisms contained in
the Kyoto Treaty.
   To this end, the Company is planning to set up workshops worldwide
with the purpose of explaining the contracting procedures and
agreements necessary to carry out the rights trading. The five-step
process for trading CO2 rights on behalf of ENDESA guarantees both the
buyer and the seller security throughout the entire procedure,
starting with project analysis and culminating in the signing of a CO2
emission rights contract between the Company and the project
developer.
   Rafael Miranda, ENDESA's CEO, stated that "as one of the world's
leading utilities, operating on three continents, Endesa is a solvent
entity, experienced in project financing. We know how to do business
and understand project developers' requirements. We propose a
flexible, pragmatic and speedy way to purchase emission rights,
providing projects with additional hard currency liquidity. The simple
contracting process will lead to reduced transaction costs for all
parties concerned."
   ENDESA sees sustainable development as a growth opportunity for
the company, not forgetting its social responsibility to the companies
it operates with, efficient use of resources, its obligation to avoid
undue environmental harm and wealth creation for those that invest in,
work in or use the company's services. ENDESA's Spanish facilities
slashed their CO2 emissions by 27.5% between 1990 and 2004, while
doubling their output during the same period. ENDESA expects its
specific CO2 emissions to be 35% lower in 2007 compared to 1990.

   This document may contain certain forward-looking statements
regarding anticipated financial and operating results and statistics
that are subject to risks and uncertainties as well as to material
risks, changes and other factors which may be difficult to predict,
including, without limitation, those factors described in the
Documento de Registro de Acciones of Endesa filed within the Comision
Nacional del Mercado de Valores and in the Form 20-F of Endesa filed
within the Securities and Exchange Commission, both for the fiscal
year ended December 31, 2004. For all of these forward-looking
statements, we claim the protection of the safe harbour for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.