After receiving the necessary administrative authorisation from the National Energy Commission on 3rd November last, ACCIONA has acquired on the market 101,983,965 shares of Endesa, representing 9.63% of its share capital and placing its total shareholding in Endesa at 19.63%

These 101,983,965 Endesa shares have been acquired at an average price of €35.6242 per share, which has gives a total disbursement of €3.663 billion.

With this new purchase operation, ACCIONA continues its plan to increase its participation in Endesa, without exceeding the limit of 24.9%.

The increase in its shareholding materialised today consolidates and reinforces ACCIONA's role as major shareholder in Endesa and ratifies its future commitment to the investment undertaken. For this reason, and as Endesa's major shareholder, ACCIONA wishes to state that it considers converting Endesa into a subsidiary of the German group E.On as absolutely negative and that it is fully in agreement with the position declared by Endesa, which considers that the price of €35 per share offered by the German operator is below the real and, above all, potential value of the company.

ACCIONA considers that Endesa is an excellent company and that it has great potential through the alignment of its resources in an energy model based on growth of its capacity, particularly in renewable energies, one of ACCIONA'S strategic pillars. Its confidence in this strategic positioning is what has led ACCIONA to ratify that Endesa is worth more and, therefore, that the price offered by the German group does not adequately reflect its extraordinary perspectives for the future.

ACCIONA's disagreement with the German group is also based on a lack of confidence as regards its business management practices and its corporate social responsibility, taking into account the alleged actions published in the national and international press and the investigations, procedures and legal proceedings currently underway with Spanish, German, Community and U.S. authorities.

To mention but a few and always according to the information published, E.On is currently facing a lawsuit in Spain, before a court in Barcelona, for the possible use of privileged information in its attempt to purchase Endesa, a matter for which it is also allegedly being formally investigated by the German stock exchange authority (BFin). In the United States, according to information published, the SEC suspects financial irregularities and are inspecting E.On's account's for the years 2000, 2001, 2002 and 2003.

Precisely today, as can be read in the press, the European Commission has announced that it has taken disciplinary action against E.On for breaking the seals placed by Community inspectors in its facilities during an investigation on abusive practices by the group that limit competition in the European energy sector. The seals were placed to guarantee there would be no destruction or manipulation of evidence.

The aforementioned would seem to fits in perfectly with the lack of respect and trust it has demonstrated towards the Spanish and Community regulatory authorities and courts by initiating a legal procedure in the United States against ACCIONA as, according to the Chairman of E.On, "it is the place where the playing field can be balanced out"

These doubts on the transparency of E.On's corporate management are joined those referring to the control of its operations, as a result of the blackout that affected over 10 million EU citizens, for which the company will probably have to assume liability.

ACCIONA, from a position of absolute respect for the courts and competent authorities in the U.S., reiterates, in any case, that the accusations that are the basis of the suit filed in the U.S. by E.On are completely false, as the Spanish company has carried out its strategic investment in Endesa in strict compliance with all the rules of transparency in relation to the securities market, the investors, the regulatory authorities and the other shareholders in Endesa and in full compliance with all the current laws of the countries that ACCIONA itself and Endesa, as participated company, are required to account to.

In this respect, the company has today presented in the New York court, additional allegations that supports its position.

ACCIONA reiterates that its participation in Endesa's share capital, decision that was taken completely freely and independently, forms part of its strategy to create value for its shareholders, management and employees through the development of a sustainable energy model.

ACCIONA, leader in infrastructures, services and renewable energies

ACCIONA is one of the Spain's most important corporations with activities in twenty or so countries in the five continents, in the areas of infrastructures, renewable energy, hydraulic resources, urban and environmental services, logistics and transport services, housing development and hospital management, amongst others.

In the first six months of 2006, ACCIONA obtained €2.873 billion (+37.3%) in sales, an EBITDA OF €458 million (+52.1%) and net earnings of €188 million (+38%). Furthermore, its investments rose to €1.555 billion, that is, 218% more than in the previous financial period. ACCIONA is listed on the select IBEX-35 (ANA.MC) stock market index, with a capitalisation of close to €9 billion.