CENIT Programme Support for a Project Spearheaded by ENDESA on Network Intelligence and Control

Business Wire, Feb 20, 2007

* The Denise project, with the participation of 12 companies and 7 research bodies, forms part of the Ingenio 2010 programme.

* The overriding purpose of this 4-year, Euro 30 million project, is to establish the framework for the intelligent, safe and efficient electricity distribution network of tomorrow.

NEW YORK -- An announcement was made yesterday that the board of the Ministry for Industry's Industrial Technological Development Centre ("CDTI" for its initials in Spanish) has included an Endesa-led (NYSE:ELE) project in the second edition of the CENIT Programme. In Spanish, CENIT stands for National Strategic Consortia for Technical Research.

The Denise project is an initiative to research the development of next generation electricity distribution networks. It is a four-year project with a budget of Euro 30 million the aim of which is to carry out research into distribution network intelligence and control focused primarily on ensuring the efficient management of supply and demand and the maintenance of a secure network.

The overriding purpose is to establish the framework for an intelligent, safe and efficient electricity distribution network. The CDTI underscored the project's technical evaluation, which was third highest among all projects presented.

The Denise consortium is led by ENDESA with the participation of 12 companies and 7 research entities: Hidrocantabrico Energia, Cap Gemini, Cetecom (AT4Wireless), DMR Consulting (Everis), DS2, Eliop, Home Systems, Inelcom, Isotrol, Sadiel, Taim-TFG, Telvent, Greenpower, AICIA, CIRCE, CITCEA, IIT-Comillas, the University of Malaga (ISIS and IC), the Polytechnic University of Madrid (CeDInt) and the CITIC and Creafutur Foundations.

In all, the Ministry decided to lend support to 15 of the 42 projects presented, with an overall grant of Euro 200 spread over four years. The projects' 4-year budgets total Euro 406 million so that the grants will finance the equivalent of 50% of each project.

The proposals are part of the CENIT Programme within the "Ingenio 2010" initiative which are aimed at promoting research in areas of great strategic importance in order to optimally position the Spanish economy on the global stage.

The inclusion of the Denise project marks the second ENDESA-led project to receive support from the CDTI, underscoring the Company's firm commitment to R&D and to Spanish industry.

The first project included, which will also last four years and has a budget of Euro 26 million, entails in-depth research into the CO2 cycle, from the reduction of emissions to the capture, storage and use or destruction of the CO2 molecule.

* 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.