Spain's ENDESA and Greece's MYTILINEOS Create the Largest Independent Operator in the Greek Market

  
    
  
  
    
      ENDESA (ELE:NYSE), the largest Spanish electricity company, and the 
      Greek metallurgical and engineering company MYTILINEOS HOLDINGS S.A. 
      have announced a strategic alliance for the Greek market which will 
      expand into Southeastern Europe.
    
    
      The new company, with the largest independent portfolio in the pipeline 
      and under construction and a well-balanced mix between thermal and 
      renewals, will become the largest independent power operator in Greece.
    
    
      In the joint venture, which will have an initial capitalization of about € 
      1.2 bn ENDESA will have a stake of 50,01%. MYTILINEOS will contribute 
      its entire thermal and renewable energy assets and licenses. The 
      contribution of the assets is expected to start immediately and be 
      completed within the next 12 months.
    
    
      The financial power of the new company, the know how of ENDESA (one of 
      the largest private multinational companies, with presence in more than 
      fifteen countries of Europe, America and Africa), and the relevant local 
      presence and industrial dimension of the MYTILINEOS group, will allow 
      the new company to face this ambitious development growth project.
    
    
      The scope of the new company includes the construction and operation of 
      thermal power stations (natural gas and coal), renewables (wind parks, 
      hydro and photovoltaic) as well as electricity and CO2 
      emissions trading. Gradual retail penetration is also foreseen after the 
      opening up of EU markets in July 2007.
    
    
      The asset base of the new joint venture will include:
    
    
      - a CHP of 334MW starting operations in June 2007
    
    
      - a 430 MW natural gas fired power plant currently under construction, 
      which will be completed in June 2009.
    
    
      - a portfolio of more than 1000 MW of renewable projects.
    
    
      - a new coal - fired power plant of 600MW
    
    
      - additional opportunities for the new venture will include a 310MW 
      trading license, additional natural gas fired power plants license and 
      international coal fired power plants.
    
    
      Both partners have expressed their satisfaction for the successful 
      conclusion of negotiations and optimism for the future of the new 
      venture, the biggest so far of its kind in Southeastern Europe.
    
    
      * 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.