ENDESA to Invest Euro 54 Million in Modernising Its Coal-Fired Plants Located in the Iberian Peninsula

  
    
  
  
    
      ENDESA (NYSE:ELE) has embarked on an initiative to modernise the steam 
      turbines in use at its coal-fired plants located within the Iberian 
      Peninsula. The project involves work on the As Pontes (La Coruña), 
      Compostilla (Ponferrada), Teruel (Andorra-Teruel), Litoral (Almería) 
      and Los Barrios (Cádiz) plants.
    
    
      The modernisation process, which requires an investment in excess of 54 
      million euros, consists of removing all the moving (rotor) and fixed 
      elements of the high and medium pressure turbines and replacing them 
      with new, highly-efficient materials boasting cutting-edge designs. Only 
      the outer shells of the current turbines will survive the process intact.
    
    
      The modernisation work will be carried out at the same time as the major 
      services of the power plants or, in the case of the As Pontes plant, the 
      conversions of the boilers, and will benefit the company by extending 
      the useful life of the turbines by around 25 years.
    
    
      Turnkey contracts for the work have been awarded to three turbine 
      manufacturing companies. The work in question will commence in July 2007 
      and will last until 2010, when modernisation work on the Compostilla 
      power station will be completed.
    
    
      The primary objective of the initiative is to improve the specific 
      consumption of each plant by 3%, largely thanks to a more efficient 
      design and the use of new materials.
    
    
      As well as extending their useful life, the modernisation of the steam 
      turbines will bring about other benefits, such as increased output 
      power, improved availability and reduced maintenance costs, stemming 
      from the use of newly designed components that suffer less wear and tear 
      between services.
    
    
      As a result of the modernisation work, ENDESA plants located within the 
      Iberian Peninsula will become significantly more competitive.
    
    
      From an environmental standpoint, the advantages speak for themselves. 
      The modernisation will lead to yearly savings of approximately 290,000 
      tonnes of coal and will likewise cut CO2 emissions into the atmosphere 
      by 550,000 tonnes a year.
    
    
      The modernisation work on the plants will require over 200,000 hours of 
      assembly work over the next three years, which will in turn lead to the 
      creation of roughly 42 direct jobs at the plants and around 20 indirect 
      jobs to manufacture numerous different items over the course of the 
      project.
    
    
      * 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, 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.