ENDESA Launches the World's First Private Initiative to Make Large Scale Purchases of Emission Rights

Business Wire, Oct 18, 2005

NEW YORK -- ENDESA (NYSE:ELE):

--The aim is to purchase 15 million tonnes of CO2 emission rights by 2012, leveraging the flexible mechanisms provided for by the Joint Application Clean Development Mechanisms contained in the Kyoto Treaty.

--The tender process for emission trading projects is now open. Contracting is to be speedy, flexible, pragmatic and competitively priced.

ENDESA (NYSE: ELE) has launched a pioneering global CO2 emissions rights purchasing initiative. The target is to purchase 15 million CO2 emissions rights through to 2012 via the flexible mechanisms provided for in the Joint Application Clean Development Mechanisms contained in the Kyoto Treaty.

To this end, the Company is planning to set up workshops worldwide with the purpose of explaining the contracting procedures and agreements necessary to carry out the rights trading. The five-step process for trading CO2 rights on behalf of ENDESA guarantees both the buyer and the seller security throughout the entire procedure, starting with project analysis and culminating in the signing of a CO2 emission rights contract between the Company and the project developer.

Rafael Miranda, ENDESA's CEO, stated that "as one of the world's leading utilities, operating on three continents, Endesa is a solvent entity, experienced in project financing. We know how to do business and understand project developers' requirements. We propose a flexible, pragmatic and speedy way to purchase emission rights, providing projects with additional hard currency liquidity. The simple contracting process will lead to reduced transaction costs for all parties concerned."

ENDESA sees sustainable development as a growth opportunity for the company, not forgetting its social responsibility to the companies it operates with, efficient use of resources, its obligation to avoid undue environmental harm and wealth creation for those that invest in, work in or use the company's services. ENDESA's Spanish facilities slashed their CO2 emissions by 27.5% between 1990 and 2004, while doubling their output during the same period. ENDESA expects its specific CO2 emissions to be 35% lower in 2007 compared to 1990.

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.