ENDESA Sells Its Subsidiary Senda Ambiental for Euro 20.7 Million, with Net Capital Gains of Euro 12.2 Million.

NEW YORK -- --The shares were sold at 6.6 times the consolidated book value of the subsidiary.

--Senda Ambiental has been sold to the Valencia group Sedesa, after a process in which 21 entities expressed an interest.

ENDESA (NYSE:ELE), as part of its strategy of divesting non-core shareholdings, has sold 100% of Senda Ambiental to the Valencia group Sedesa for Euro 20.7 million. The operation has brought in net capital gains of Euro 12.2 million for ENDESA. The shares were sold at 6.6 times the consolidated book value of the subsidiary.

21 entities expressed an interest in acquiring the company of which 10 submitted non-binding bids. Finally, 3 binding bids were received and after the final negotiations a definitive agreement has been reached with the Valencia group SEDESA.

Senda Ambiental was created in January 2000 and is the subsidiary grouping together ENDESA's investments in the environmental sector. The activities undertaken by Senda Ambiental, distributed among its shareholdings in various companies, are as follows:

--Industrial waste collection and treatment (IW): Similar to urban and special waste such as batteries, fluorescent lighting, electrical and electronic equipment and any other special category IW. Senda Ambiental also treats water contaminated with chromium.

--Solid urban waste collection and treatment (SUW): Senda Ambiental manages the collection of this kind of waste in various towns in the provinces of Barcelona and Alicante, and also provides urban services such as street cleaning, the cleaning of buildings, gardening and other activities.

--Management and operation of waste tips: Senda Ambiental manages SUW tips in the provinces of Alicante and Barcelona. It also owns a high capacity tip for industrial waste similar to urban waste, in operation since January 2004, and it participates in the concession company responsible for managing and operating the treatment plant and waste tip at Valdemingomez (Madrid) through the Vertresa-Senda joint venture.

The group which has acquired Senda Ambiental, SEDESA, is also a partner of Endesa Cogeneracion y Renovables (ECYR) in Proyectos Eolicos Valencianos, S.A. (ECYR 55%, Sedesa 25% and Bancaja 20%), the company responsible for carrying out the Wind Power Plan for the province of Valencia.