ENDESA to Buy 2.7 Million Tonnes of CO2 Emission Rights in China; CDM Project with Huaneng and Jiuquan Sanyuan Hydro Power

ENDESA (NYSE:ELE):

   --  The deal forms part of ENDESA's strategy of acquiring carbon
        credits by taking part in clean development mechanism (CDM)
        projects and thereby contributing to the sustainable
        development of those countries in which it operates.

   --  The Environment Ministry has authorised the deal.

   ENDESA (NYSE:ELE) will buy from the Chinese companies Huaneng and
Jiuquan Sanyuan Hydro Power 100% of their certified reductions in
greenhouse gases in three wind farms and a hydro plant in China in
2006 - 2012, which could reach a total of 2.7 million tonnes of CO2.
The Environment Ministry has approved the deal, which was the final
requirement needed following the agreement reached with the Chinese
authorities.
   The agreement covers CDM projects at three wind farms (Changdao,
Qidong and Weihai) which belong to the Huaneng company and which have
a combined capacity of 188 MW and one at the Gansu hydro plant which
is owned by Jiuquan Sanyuan Hydro Power Development and has 26.55 MW
capacity. The agreement includes the purchase of all emission rights
at these four sites from 2006 to 2012.
   The reductions obtained thanks to these projects are measured and
verified by UN accredited bodies and may be used to meet European
companies' Kyoto Protocol greenhouse gas reduction targets.
   This operation reinforces ENDESA's position as one of the leading
private carbon credit purchasers via the Endesa Climate Initiative, a
pioneering initiative for purchasing carbon credits. The target is to
purchase 15 million CO2 emissions rights through to 2012 via the
mechanisms provided for in the Joint Application Clean Development
Mechanisms contained in the Kyoto Treaty.
   "Endesa Climate Initiative" is the ENDESA Group's B2B initiative
to promote and purchase reductions in greenhouse gas emissions by
means of the mechanisms established under the Kyoto Protocol. Through
this programme the Company is also making a commitment to create
additional value for the companies which generate emissions reductions
through a flexible and swift focus, consultancy and cooperation, as
well as through attractive conditions for each of the contracts.
   ENDESA sees sustainable development as a growth opportunity for
the company, whilst not forgetting its social responsibility to the
communities in which it operates, the efficient use of resources, its
obligation to avoid undue environmental harm and wealth creation for
those who 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 to reduce its CO2 emissions by 35% 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, 2005. 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.