ENDESA and HUNOSA Sign Agreement to Build a 400 MW CCGT Plant in Mieres (Asturias).

NEW YORK -- ENDESA (NYSE:ELE):

* The project will entail investment of around Euro 190M.

* It will be sited next to the La Pereda plant, owned by HUNOSA, enabling it to use the existing evacuation infrastructure.

* The Agreement also addresses the parties' interest in developing joint applications and uses for coal based on clean fuel technology.

* The project forms part of ENDESA's New Capacity Plan contained in its Strategic Plan.

ENDESA Generacion, S.A. and HUNOSA have signed today an Agreement to establish a Company which will build and operate a 400 MW CCGT plant using natural gas at La Pereda, in the town of Mieres, Asturias. The Company will be 30% owned by HUNOSA and 70% owned by ENDESA (NYSE:ELE).

The project will entail investment of around Euro 190M and will create 450 jobs whilst the plant is being built (two years). The plant will then employ 30 people during its useful life with a further 25 indirect jobs being created in the area.

The Plant will be built on land owned by HUNOSA, next to the La Pereda plant belonging to the same company. This will enable the plant to use existing infrastructure thereby improving performance and lessening environmental and energy incidents as well as boosting the socio-industrial development of the area.

The Agreement and location chosen are based on the area's important industrial makeup, the correct energy evacuation infrastructure and plans to improve the gas system once the new regasification plant at the Port of Gijon comes on stream.

The Agreement also addresses the parties' interest in developing joint applications and uses for coal based on clean fuel technology, either bilaterally or through national R+D programmes.

This Agreement, both in terms of the installation of a new CCGT and the development of new technologies, is a clear indication of ENDESA's commitment to clean fuel, including not only the use of natural gas, desulphurisation, denitrification and reduction of new contaminants but also the capture and storage of CO2 which could help the use of coal as a fuel in the future.

This project is included in ENDESA's New Capacity Plan contained in the group's Strategic Plan due to run until 2009. As part of this, ENDESA plans to bring on stream 14 new CCGT plants in the countries where it operates which will see this technology's strength increase by 83%.

Once these new installations are operational in 2009, ENDESA will have 35 CCGT plants compared to the current 21 with a total installed capacity of 11,433 MW. Of this amount, 3,200 MW will be added to the Spanish and Portuguese market, 874 MW to the Latin American market and the remaining 1,100 MW to the European.

* 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 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, 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.