ENDESA: Relevant Fact

Business Wire, Dec 30, 2005

NEW YORK -- ENDESA (NYSE:ELE) has signed today an agreement with Deutsche Bank, S.A.E. to sell its remaining 5.01% stake in France Telecom Operadores de Telecomunicaciones (formerly Auna) to the German bank for Euro 377.9 million. This price derives from the minimum price guaranteed by France Telecom to ensure the liquidity of the shares and is subject to the normal closures for this type of transaction. Deutsche Bank, S.A.E. thereby becomes party to the agreement signed between selling shareholders of Auna and France Telecom on 8 November, although ENDESA retains the right over any increases in the share price that could result form their sale since 8 November 2008 pursuant to the liquidity mechanism envisaged in the agreement.

Remaining Auna shareholders may exercise pre-emptive subscription rights at the same price and in the same terms.

With this, ENDESA will have sold its entire stake in Auna, in line with an agreement by its Board of Directors on 19th April 2005 announced and begun in the year's second quarter. This forms part of the company's strategy of divesting non-core assets, underway for some time now.

The total sale of the Auna stake has produced Euro 1.47 billion of pre-tax and Euro 1.29 billion after-tax capital gains for ENDESA, after subtracting expenses inherent in the transaction and updated for provisions against potential adjustments in the share price.

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.