The combustion gas desulfurisation project for groups 1 and 2 at the Alcudia fossil fuel plant comes on stream - ENDESA Continue

ENDESA:

   --  The project will entail an investment of Euro 8.2 million and
        come on-stream in 2007.

   --  The installation of the new desulphurisation system in the two
        oldest groups at this power station (G1 and G2 from 1981 and
        1982 respectively), with a total capacity of 250MW (the
        station also has two other groups of 130MW each which already
        have this system installed), will allow annual reductions in
        emissions of sulphur dioxide (SO2) of nearly 75% and an 80%
        reduction of particles. It will also be able to treat 100% of
        combustion gases produced by the boiler and the temperature of
        the emerging gases will be reduced by 47%.

   ENDESA's (NYSE:ELE) subsidiary GESA ENDESA has begun construction
of a combustion gas desulphurisation plant for groups 1 and 2 at the
Alcudia power station, located on the island of Mallorca, as part of
its ongoing Action Plan to reduce gas emissions at the Company's
fossil fuel plants in Spain. Investment in the project will total Euro
8.2 million.
   The desulphurisation technique chosen is the "semi-wet" type. This
is a chemical process whereby the sulphur oxides produced in carbon
combustion processes are captured and washed as they come out of the
boilers, they are then coated with limestone which reacts with the
sulphur dioxide (SO2) producing a mixture of sulphite and calcium
sulphate.
   Its main purpose will be the reduction of sulphur emissions and
the modification of some electricity and control systems in the
existing plant in order to adapt them to the new working conditions.
   In order to carry out this project, technology from the German
company Fisia Babcock Environment Gmbh will be supplied under a
turn-key contract. Endesa will provide the work teams who will
contribute their experience in carrying out similar projects, as well
as the Company's own technology.
   The desulphurisation plant is a major upgrade which will enable
ENDESA to continue introducing cutting- edge technology to its fossil
fuel assets which are essential for the environmental compatibility of
its activities and meeting the requirements of the 2001/80/EC
Directive dated 23 October 2001 on limiting the emissions of certain
contaminating agents into the atmosphere from large combustion plants
(GIC Directive) which was translated into Spanish legislation by the
430/2004 Royal Decree of 12 March 2004.
   The installation of the new desulphurisation plant will enable
ENDESA to continue to pursue its action plan to reduce power station
emissions contained in its Strategic Plan. ENDESA already has plants
installed at its Teruel (Andorra-Teruel), Compostilla
(Ponferrada-Leon), Litoral de Almeria (Almeria), Alcudia (Mallorca),
Granadilla (Tenerife) and Barranco de Tirajana (Gran Canaria) power
stations.
   The wet system has been installed at the Teruel, Compostilla and
Litoral de Almeria power plants, similar to the system installed at
the Los Barrios station, whilst the Alcudia plant uses coals with a
sulphur content of less than 1%, which requires the use of a semi-dry
system. The Barranco de Tirajana and Granadilla plants use sea water.
   The plan also contemplates the installation of new
desulphurisation plants or the adaptation of ones that already exist
at the Compostilla and Litoral de Almeria power stations.

   * 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.