ENDESA Inaugurates the First CCGT Plant in Peru with Installed Capacity of 492 MW.

Attended by Peruvian president Alan GarcE a

* The ceremony, which was presided over by the Peruvian president, Alan GarcE a, was also attended by the chairman of ENDESA, Manuel Pizarro, and CEO, Rafael Miranda

* The plant, which will use gas from the Camisea fields and required an investment of USD 135 million, is the biggest, most modern and most efficient thermal plant in Peru

NEW YORK -- ENDESA (NYSE:ELE) has inaugurated Peru's first CCGT plant (installed capacity 492 MW; investment USD 135 million). The inauguration ceremony, which was presided over by the Peruvian president, Alan GarcE a, was also attended by ENDESA's chairman, Manuel Pizarro, and CEO, Rafael Miranda, and leading members of Peru's economic, financial and political circles.

The plant, which took two years to build, is the first in the country to be fed with natural gas from the Camisea fields and the first to use CCGT technology, making it the biggest, most modern and most efficient thermal plant in Peru. With the start-up of this plant, ENDESA becomes the leading consumer of natural gas from the Camisea field

At his inauguration speech, Peruvian president Alan GarcE a thanked ENDESA for having confidence in Peru "at an especially difficult time for Latin America and when uncertainty in the region is rife", which, according to the Peruvian premier can only be explained by the seriousness and judicial security offered and transmitted by the country. "We must keep up confidence in Peru and show that our country is serious, responsible and unaffected by demagogy and adventurism if we want capital to keep flowing in."

After thanking Alan GarcE a for his words, ENDESA's chairman, Manuel Pizarro, stated that this investment will not only consolidate the Group's presence in Peru's generation sector but also makes it the biggest investor in modernising the electricity sector in the country. "This plant", said Mr. Pizarro, "has cost us a great deal of effort and money and also gives us a great deal of hope. We have confidence in Peru and will continue to invest here".

ENDESA has been operating in Peru since 1994 (and 10% of its Latin American assets are in this country).

In the generation business it has a controlling stake in Edegel (through Enersis) which owns installed capacity of 1,284 MW. On 1 June this year, the merger and takeover of Etevensa (where ENDESA also had a controlling stake) by Edegel was completed. This transaction has resulted in a more balanced overall generation mix (51% hydro and 49% thermal), which will, among other things, reduce the volatility of revenues caused by variations in rainfall. ENDESA also has a controlling stake in the generation company Piura (143 MW).

And, in conjunction with Enersis, its holds a 60% stake in Edelnor, which distributes electricity to 925,000 customers in the northern part of Lima. It has installed capacity of 2.3 MW.

* 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 ComisiE[thorn]n 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.