Endesa Puts Euro 1 Billion Worth of Real Estate Assets up for Sale via Bolonia Real Estate

Endesa (NYSE:ELE):

   --  Bolonia manages 140 million m2 of land with more than two
        million m2 of land which can be built on.

   --  Sales worth Euro 122 million were concluded in 2005.

   --  Projected sales of Euro 250 million and land availability make
        Bolonia one of the leading land management portfolios in
        Spain.

   --  The Balearic Islands, Catalonia and Andalusia are its largest
        markets, with emblematic projects in Palma de Mallorca,
        Barcelona and Malaga.

   --  More than 3,200 hectares of land have been restored, providing
        land in especially valuable protected areas.

   Endesa (NYSE: ELE) will obtain revenues of around Euro one billion
from urban development projects in several autonomous regions via
Bolonia Real Estate, the company created in July 2005 to manage its
real estate assets, primarily land.
   Prominent among current projects for their emblematic value and
their influence on the urban environment are those in Palma de
Mallorca (with 170,000 m2 of land which can be built on), Barcelona,
where more than 116,000 m2 of land are available and which will be the
most important project since the 1992 Olympic Games in the sea front
of Barcelona; and Malaga, where the 153,000 m2 of land on the city's
seafront promenade will radically alter the appearance of the area.
   Bolonia currently manages around thirty projects in Catalonia,
Andalusia, the Balearic Islands, the Canary Islands, Galicia and
Aragon.
   Bolonia is introducing a model that goes beyond simply selling
assets to become involved in the research and development of the new
use of the land, be it in urban areas or rural settings.
   This ensures integrated and sustainable development in the
long-term, in line with Endesa's sustainability policy, by acting in
three areas: environmental, social and economic

   Contribution of land to the market

   The real estate assets managed by Bolonia are basically from
plants and installations (former power stations and generation and
distribution facilities, disused land and mines) which are no longer
of use; these are therefore being put on the market in an orderly
manner and in line with the aforementioned sustainability criteria.
   Bolonia has so far identified and manages more than 140 million m2
of land in Spain; this is particularly significant at a time when
scarcity of land is one of the main factors behind rising real estate
prices. The land situated in Spain has potential building space of
more than one million m2 and could generate revenues of Euro one
billion by 2010.
   Bolonia concluded 11 operations in 2005 worth Euro 122 million,
generating a gross capital gain of Euro 105 million. In the five
previous years, Endesa sold assets worth Euro 686 million.
   The company expects to carry out sales worth Euro 250 million this
year; which, along with its high availability of land, would make the
company one of the leading players in the Spanish real estate sector.

   Types of land

   Bolonia manages two types of land according to its previous uses:
urban and rural. The aim in both is to add value to the land cycle by
generating the best project, as well as harmonising business
objectives with those of the governments and social agents.
   Therefore, in both types of land (urban and rural), Bolonia's
management model goes beyond simple business diversification and real
estate business, becoming involved in the new developments with the
aim of creating value and, if appropriate, improving the environment,
promoting integration with the regions in which it is present.

   Urban assets

   Its portfolio of urban real estate assets is in excellent
locations in both established coastal and urban areas and developing
mountain areas. In each case, Bolonia (which draws on Endesa's
expertise in civil works, engineering and urban development) has a
team that specialises in the technical and urban development of the
land, and works in partnership with professionals and experts in town
planning at a regional and local level.
   The aim is to achieve perfectly integrated urban developments that
generate high added value - both from a quality and economic
perspective - for the urban environment of which they form part. The
most emblematic examples are Palma de Mallorca, Barcelona and Malaga.
   Bolonia also manages a portfolio of 83 million m2 in Latin
America; primarily in the city of Santiago de Chile.

   Management of natural environments

   In locations where the project is being carried out in a natural
environment, Bolonia aims to make the most appropriate use of the
land, conserving and improving the environment by recovering spaces of
high ecological value such as former rubbish dumps, mines, water
resources and agricultural substrates.
   The aim is also to add value to the land once its original use has
been restored beyond simply dismantling the facility that had occupied
the site until then. Bolonia's sites in natural areas are ideal places
for scientific and environmental research.
   In this area land drainage, agriculture, reforestation and
low-impact renewable energy projects are identified for subsequent
development; one such project is Belmez, where former rubbish dumps
are to be replaced by a photovoltaic energy plant, or other sites
where agreements have been negotiated with environmental
organisations.
   Endesa's experience in the field is backed by initiatives such as
the more than 3,200 hectares of land recovered in mining areas and the
Huinay Foundation (Chile), a project promoting sustainable development
and the preservation of biodiversity in a 35,000-hectare natural area
that is managed by its subsidiaries Enersis and Endesa Chile.

   More information: www.boloniarealestate.es

   * 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.