ENDESA Starts Work on the New Valpardo Wind Farm in Avila.

NEW YORK -- ENDESA (NYSE:ELE):

--The farm will have installed capacity of 21.5MW and an estimated output of 57GWh a year.

--It will require an investment of approximately Euro 20 million and is scheduled to come on stream at the end of this year.

--This project will bring ENDESA's installed capacity in the region of Castilla y Leon up to 267MW, accounting for 16% of the total capacity installed in this region.

--The construction of this wind power complex is part of ENDESA's strategic plan and underlines the company's commitment to the environment and sustainable development.

ENDESA (NYSE:ELE) will have 21.5 MW of new wind capacity in the region of Castilla y Leon once its cogeneration and renewable energy subsidiary (ENDESA Cogeneracion y Renovables: ECYR) completes the construction of the Valpardo wind farm in the town of Navalperal de Pinares (Avila), located in the central part of the Malagon mountain range. The farm is scheduled to start up at the end of this year.

It will be equipped with 25 Gamesa G-58 and G-52 wind turbines, each with a unit capacity of 850 kV and a height of 55 metres. With an installed capacity of 21.5 MW, this farm is expected to produce 57 GWh of power per year, the equivalent to the energy consumption of 14,250 households and will prevent 25,000 tons of CO2 emissions a year.

This new farm - requiring an investment of Euro 20 million - is the fourth to be built by ENDESA Cogeneracion y Renovables in Avila, in addition to the Navazuelo, Altos de Cartagena and Navas del Marques wind farms. When the Valpardo project has been completed ENDESA will have total installed wind capacity of 70.23MW in the region.

This project will bring the Company's total installed electricity capacity in the province of Castilla y Leon up to 267MW, 16% of the total capacity installed in this region.

Moreover, in order to adopt this project to its natural and cultural surroundings a series of preventative, corrective and compensatory measures have been implemented; these include archaeological investigations and are designed to protect the soil and local wildlife and vegetation. We would highlight the collaboration of the Castilla y Leon Environmental Services to improve the monitoring and protection of several species of wildlife such, as the black stork, the Iberian imperial eagle and the black vulture.

Construction of this wind power complex forms part of ENDESA's strategic plan, which envisages bringing on line 2,400 MW of additional capacity from renewable energies over a period of five years, incremental to the 1,465 MW already installed. These new farms add a new strand of renewable capacity to ENDESA's generation mix, giving the company an appropriately diversified capacity and underlining its commitment to environmental and sustainable development issues in markets where it operates.

* 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.