ENDESA's SNET to Install Desulphurisation Systems in the 600 MW Units of Its Emile Huchet and Provenza Plants to Comply with Environmental Restrictions.

NEW YORK -- ENDESA:

--The total cost of the installation is budgeted at Euro 156 million.

--Assembly work began on the Emile Huchet plant in February and on the Provenza plant this month.

--With this investment, the plants' 600 MW units will have modern desulphurisation and denitrification systems in place by 2008, which will allow them to run efficiently and cleanly beyond 2015.

In compliance with the EU Directive limiting the emissions of certain contaminating agents into the atmosphere by large combustion plants (LCPD), SNET, ENDESA's (NYSE:ELE) French subsidiary, has begun assembling desulphurisation and denitrification systems at its two 600 MW coal-fired units at the Emile Huchet (in Lorraine) and Provenza (in Provence Alpes Cote d'Azur) plants. Existing facilities will also have to be adapted.

Assembly work began on the Emile Huchet plant in February and on the Provenza plant in September.

The total budget for the two units is Euro 156 million, of which 85% will be allocated to the new desulphurisation and denitrification systems and the remaining 15% to plant adaptation.

With this investment, the plants' 600 MW units will have modern gas treatment systems in place by 2008, which will allow them to run efficiently and cleanly beyond 2015.

The environmental work carried out on the 600 MW units will considerably reduce nitrous oxide (NOx) and sulphur oxide (SOx) emissions. For this purpose, SNET has adopted the following techniques:

--Selective Catalytic Reduction (SCR) of nitrous oxides (NOx) using ammonia as a reducing agent. This technology has achieved excellent results and could lower the concentration of NOx by as much as 60%.

--Warm gas desulphurisation (WGD) processes based on calcareous material. This system can reduce SOx concentration by as much as 75% and yields a gypsum suitable for sale.

These techniques are state-of-the-art in the fields of desulphurisation and denitrification. The new equipment should not only boost productivity, but also be able to treat the entire 4 million m3 of combustion gases produced in the boiler.

Alongside the start-up of these desulphurisation and denitrification systems, all existing gas lines will be adapted to the new characteristics of the gas emerging from the catalytic converter and warm control units.

The entire process will require the presence of 300 workers at each plant during the peak of the assembly period. Steps have been taken and procedures adopted to facilitate the construction while allowing the units to continue operating.

For the new equipment to be hooked up to existing units, an action plan has been drawn up enabling this to take place during the plants' scheduled downtime; i.e. summer of 2006 for the Emile Huchet plant and the spring of 2007 for the Provenza plant.

The two new 600 MW units should therefore comply with the new emission level requirements contained in the LCPD by 1 January 2008.

Snet to install desulphuration systems in the 600 MW units of its Emile Huchet and Provenza plants to comply with environmental restrictions.

* 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.