ENDESA Acquires 290 MW in Wind Power from Sacyr Vallehermoso In Portugal.

NEW YORK -- ENDESA(NYSE:ELE):

--ENDESA has signed an agreement to acquire from Portuguese company FINERGE, the umbrella of a holding which operates wind farms and co-generation plants and which has 60 MW in use and 260 MW in the pipeline.

--The operation is valued at Euro 166.12 million.

ENDESA (NYSE:ELE) has signed an agreement with Sacyr Vallehermoso for the acquisition of 100% of the share capital of Portuguese company Finerge Gestao de Proyectos Energeticos, S.A. (FINERGE), umbrella company of a holding which operates wind farms and co-generation plants in Portugal. The deal hinges on the pertinent authorisation from the Portuguese anti-trust authorities.

The company, which has 43 subsidiaries, owns projects already in operation whose installed capacity is 60 MW and projects under construction or in the pipeline with a capacity of 260 MW.

The operation is valued at Euro 166.12 million, of which Euro 149 million correspond to the acquisition price and the remaining Euro 17.05 million to the amount of loans granted to the company by its current shareholders.

This agreement falls within the framework of ENDESA's Strategic Plan, which envisages an increase in installed capacity of renewables amounting to 2,400 MW in Spain and Portugal in 2005-2009. In this regard, the deal is a chance for ENDESA to move closer to its objectives.

Furthermore, the Portuguese framework in terms of special regime remuneration, recently approved, guarantees the return on wind farms, which are ensured network connection points. This is the case for all FINERGE plants, for 15 years as from entry into service.

ENDESA's cogeneration and renewable energy plants have a total installed capacity of 2,148 MW. Of this, 1,672 MW correspond to renewable energy plants located in Spain, 476 MW to cogeneration and waste treatment plants in Spain and 107 MW to cogeneration plants in Portugal, Colombia and Mexico.

* 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 Folleto Informativo Continuado 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, 2003. For all of these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.