ENDESA's SNET to Install Desulphurisation Systems in the 600 MW Units of Its Emile Huchet and Provenza Plants to Comply with Env

ENDESA:

   --  The total cost of the installation is budgeted at Euro 156
        million.

   --  Assembly work began on the Emile Huchet plant in February and
        on the Provenza plant this month.

   --  With this investment, the plants' 600 MW units will have
        modern desulphurisation and denitrification systems in place
        by 2008, which will allow them to run efficiently and cleanly
        beyond 2015.

   In compliance with the EU Directive limiting the emissions of
certain contaminating agents into the atmosphere by large combustion
plants (LCPD), SNET, ENDESA's (NYSE:ELE) French subsidiary, has begun
assembling desulphurisation and denitrification systems at its two 600
MW coal-fired units at the Emile Huchet (in Lorraine) and Provenza (in
Provence Alpes Cote d'Azur) plants. Existing facilities will also have
to be adapted.
   Assembly work began on the Emile Huchet plant in February and on
the Provenza plant in September.
   The total budget for the two units is Euro 156 million, of which
85% will be allocated to the new desulphurisation and denitrification
systems and the remaining 15% to plant adaptation.
   With this investment, the plants' 600 MW units will have modern
gas treatment systems in place by 2008, which will allow them to run
efficiently and cleanly beyond 2015.
   The environmental work carried out on the 600 MW units will
considerably reduce nitrous oxide (NOx) and sulphur oxide (SOx)
emissions. For this purpose, SNET has adopted the following
techniques:

   --  Selective Catalytic Reduction (SCR) of nitrous oxides (NOx)
        using ammonia as a reducing agent. This technology has
        achieved excellent results and could lower the concentration
        of NOx by as much as 60%.

   --  Warm gas desulphurisation (WGD) processes based on calcareous
        material. This system can reduce SOx concentration by as much
        as 75% and yields a gypsum suitable for sale.

   These techniques are state-of-the-art in the fields of
desulphurisation and denitrification. The new equipment should not
only boost productivity, but also be able to treat the entire 4
million m3 of combustion gases produced in the boiler.
   Alongside the start-up of these desulphurisation and
denitrification systems, all existing gas lines will be adapted to the
new characteristics of the gas emerging from the catalytic converter
and warm control units.
   The entire process will require the presence of 300 workers at
each plant during the peak of the assembly period. Steps have been
taken and procedures adopted to facilitate the construction while
allowing the units to continue operating.
   For the new equipment to be hooked up to existing units, an action
plan has been drawn up enabling this to take place during the plants'
scheduled downtime; i.e. summer of 2006 for the Emile Huchet plant and
the spring of 2007 for the Provenza plant.
   The two new 600 MW units should therefore comply with the new
emission level requirements contained in the LCPD by 1 January 2008.
   Snet to install desulphuration systems in the 600 MW units of its
Emile Huchet and Provenza plants to comply with environmental
restrictions.

   * 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.