ENDESA to Install 100 MW of Photovoltaic Solar Energy in Spain

  
    
  
  
    
      ENDESA (NYSE:ELE):
    
    
      
        The agreement additionally contemplates the participation of both 
        companies with the regional government of Andalusia in a polysilicone 
        plant, the seventh in the world, which will guarantee the supply of 
        this raw material for the manufacture of photovoltaic modules. ENDESA 
        will supply the power required to operate the plant.
      
      
        The agreement also provides for collaboration on several projects 
        designed to demonstrate concentrating photovoltaic technology (CPV), 
        which will subsequently facilitate the manufacture of more efficient 
        solar modules.
      
    
    
      ENDESA (NYSE:ELE) has signed a collaboration agreement with ISOFOTÓN, 
      the producer of photovoltaic panels, with the aim of ensuring that 
      ENDESA has access to the equipment required to develop the solar powered 
      facilities that the Company plans to install between now and 2011.
    
    
      Representing ENDESA at the agreement signing were Manuel Moran, General 
      Manager for ENDESA Generation and Martín 
      Madrid, Director of Horizontal Projects, while from ISOFOTÓN, 
      Alvaro Ybarra Zubiría, Chairman and Jose Luis 
      Manzano, CEO, were present.
    
    
      The agreement also provides for collaboration on several projects 
      designed to demonstrate concentrating photovoltaic technology (CPV), 
      which will facilitate subsequent commercialisation.
    
    
      These new concentrating systems represent a new departure and offer an 
      alternative to current silicone based technology, the material used in 
      solar cells. The semiconductor material used is gallium arsenide which, 
      because it collects and focuses sunlight via a series of lenses, creates 
      more energy over a smaller surface area.
    
    
      In addition, ENDESA, ISOFOTÓN and the 
      regional Andalusian government plan to collaborate to develop and 
      construct a polysilicone plant in Los Barrios (Cádiz), 
      in response to increased demand for this raw material, key to the 
      production of PV modules and which will guarantee both companies’ 
      supply needs. Development on this project, named Silicio Energía, 
      will commence in the coming months and the facility will be operational 
      in 2009. Estimated investment in the project totals Euro 250 million to 
      give polysilicone capacity of 2,500 tonnes/year, equivalent to 250 MW of 
      PV modules per year. ENDESA will supply the power required to operate 
      the plant.
    
    
      The agreement between both companies will act as a boost to photovoltaic 
      solar energy in Spain and will enhance environmental awareness as it 
      will increase the production of renewable energy, in addition to 
      contributing to meeting Kyoto Treaty commitments.
    
    
      ENDESA
    
    
      ENDESA has installed photovoltaic capacity of 42 kW in Minorca in 
      addition to owning a 60% stake in the Llanos de Aridane facility in the 
      Canary Islands, which has installed capacity of 25 kW, and a 33% stake 
      in the 1 MW Toledo PV plant.
    
    
      The Company is also developing a project for the installation of 850 kW 
      of PV solar power in its fossil fuel power stations located in Los 
      Barrios (Algeciras, Cádiz), Litoral 
      (Carboneras, Almería) Teruel (Andorra, 
      Teruel), Son Reus (Palma de Mallorca), Compostilla (Ponferrada, León), 
      Granadilla (Granadilla de Abona, Tenerife), Barranco de Tirajana (San 
      Bartolomé de Tirajana, Gran Canaria) and As 
      Pontes (Corunna).
    
    
      ISOFOTÓN
    
    
      ISOFOTÓN is a leading developer of 
      technological solutions for the generation and use of solar energy. The 
      company is deeply committed to the environment and to society worldwide. 
      It is the largest PV and thermal solar energy company in Spain and one 
      of the largest in the world. It has a commercial presence in over 60 
      countries and has subsidiaries in China, Ecuador, the US, Italy, 
      Morocco, the Dominican Republic as well as a project office in Senegal. 
      For further information visit www.isofoton.com.
    
    
      * 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 Comisión 
      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.
    
  
ENDESA (NYSE:ELE):

   --  The agreement additionally contemplates the participation of
        both companies with the regional government of Andalusia in a
        polysilicone plant, the seventh in the world, which will
        guarantee the supply of this raw material for the manufacture
        of photovoltaic modules. ENDESA will supply the power required
        to operate the plant.

   --  The agreement also provides for collaboration on several
        projects designed to demonstrate concentrating photovoltaic
        technology (CPV), which will subsequently facilitate the
        manufacture of more efficient solar modules.

   ENDESA (NYSE:ELE) has signed a collaboration agreement with
ISOFOTON, the producer of photovoltaic panels, with the aim of
ensuring that ENDESA has access to the equipment required to develop
the solar powered facilities that the Company plans to install between
now and 2011.

   Representing ENDESA at the agreement signing were Manuel Moran,
General Manager for ENDESA Generation and Martin Madrid, Director of
Horizontal Projects, while from ISOFOTON, Alvaro Ybarra Zubiria,
Chairman and Jose Luis Manzano, CEO, were present.

   The agreement also provides for collaboration on several projects
designed to demonstrate concentrating photovoltaic technology (CPV),
which will facilitate subsequent commercialisation.

   These new concentrating systems represent a new departure and
offer an alternative to current silicone based technology, the
material used in solar cells. The semiconductor material used is
gallium arsenide which, because it collects and focuses sunlight via a
series of lenses, creates more energy over a smaller surface area.

   In addition, ENDESA, ISOFOTON and the regional Andalusian
government plan to collaborate to develop and construct a polysilicone
plant in Los Barrios (Cadiz), in response to increased demand for this
raw material, key to the production of PV modules and which will
guarantee both companies' supply needs. Development on this project,
named Silicio Energia, will commence in the coming months and the
facility will be operational in 2009. Estimated investment in the
project totals Euro 250 million to give polysilicone capacity of 2,500
tonnes/year, equivalent to 250 MW of PV modules per year. ENDESA will
supply the power required to operate the plant.

   The agreement between both companies will act as a boost to
photovoltaic solar energy in Spain and will enhance environmental
awareness as it will increase the production of renewable energy, in
addition to contributing to meeting Kyoto Treaty commitments.

   ENDESA

   ENDESA has installed photovoltaic capacity of 42 kW in Minorca in
addition to owning a 60% stake in the Llanos de Aridane facility in
the Canary Islands, which has installed capacity of 25 kW, and a 33%
stake in the 1 MW Toledo PV plant.

   The Company is also developing a project for the installation of
850 kW of PV solar power in its fossil fuel power stations located in
Los Barrios (Algeciras, Cadiz), Litoral (Carboneras, Almeria) Teruel
(Andorra, Teruel), Son Reus (Palma de Mallorca), Compostilla
(Ponferrada, Leon), Granadilla (Granadilla de Abona, Tenerife),
Barranco de Tirajana (San Bartolome de Tirajana, Gran Canaria) and As
Pontes (Corunna).

   ISOFOTON

   ISOFOTON is a leading developer of technological solutions for the
generation and use of solar energy. The company is deeply committed to
the environment and to society worldwide. It is the largest PV and
thermal solar energy company in Spain and one of the largest in the
world. It has a commercial presence in over 60 countries and has
subsidiaries in China, Ecuador, the US, Italy, Morocco, the Dominican
Republic as well as a project office in Senegal. For further
information visit www.isofoton.com.

   * 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.