ENDESA and ASM Brescia Present in Italy the New Company Created to Supply Electricity in This Country.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 4, 2003

ENDESA (NYSE: ELE)

-- The company, denominated ERGON ENERGIA, is 50% owned by each

group.

-- The new company aims to reach a 10% market share of the

electricity sales to final customers.

ENDESA (NYSE: ELE) and the Italian group ASM Brescia have presented in Italy their jointly-owned company ERGON ENERGIA. This company will supply electricity, gas and power services to the liberalized Italian customers.

The CEO of the new company, based in Brescia, is Fausto Cancelli, current manager of ASMEA, the supply company of ASM Brescia Group.

ERGON ENERGIA will sell the electricity generated by Endesa Italia's plants. Endesa Italia has an installed capacity of 5,720 MW and its estimated generation for 2003 is around 18,000 GWh.

The goal of this new company is to reach a 10% market share of the electricity sales to final customers.

Endesa Italia contributes to ERGON ENERGIA with technological support for systems and products, whereas ASM Brescia provides its knowledge of the Italian market, elements that have allowed the new company to immediately begin its commercial activity.

ENDESA counts in Europe with more than 650 supply points to liberalized customers in five European countries, an annual consumption over 11,500 GWh. This figure represents around a third of the energy that ENDESA sells to liberalized customers in Spain.

In France, ENDESA is the second supplier after EDF; in Portugal it currently has a 30% market share of the liberalized market; in Andorra, it will supply 50% of the imports; and in Germany, it has contracts signed by a total of 400 GWh.