ENDESA and Mexico's Comision Federal de Electricidad -CFE- Sign a Cooperation Framework Agreement.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 6, 2002

ENDESA

- This Agreement Settles the Cooperation Principles Between CFE and ENDESA in
Common Interest Projects in Areas Like Information Technologies,
Telecommunication and Telecontrol, Environmental Management and Change
Management. Moreover, It Will Also Cover the Investment Projects Analysis
Within the Development Strategies of Both Companies.

- The Agreement has Been Executed by Rafael Miranda, CEO of ENDESA and by
Alfredo Elias, Director of CFE.

- As a Result, Through a Close Relationship With CFE, One of the Key Companies
in Mexico, ENDESA is Optimally Positioned in Such Market.

ENDESA (NYSE: ELE) has signed a cooperation framework agreement with the Mexican Government owned company CFE (Comision Federal de Electricidad) to select, organize and develop projects in areas such as information technologies, telecommunications and telecontrol, environmental management and change management together with the investment projects analysis within the development strategies of both companies

The agreement has been simultaneously executed via videoconference between Madrid and Mexico City by Rafael Miranda, CEO of ENDESA and by Alfredo Elias, Director of CFE.

This agreement establishes a basis for cooperation between CFE and ENDESA in common interest projects, and specifically in sharing the knowledge, experience and skills in areas like: PLC technology (voice, data and image high speed transmission on low voltage electric grid), dark fiber use, commercial procedures, distribution management and grid control, power generation management, environmental management and information systems use and architecture.

Moreover, the agreement sets up a link to cooperate in the migration from vertically integrated organizational models into business units with accounting and legal identity. In addition to this, it makes possible the cooperation within a legal framework and competitive environments analysis (negotiation power of competitors and customers), skills in which ENDESA has a broad expertise.

Evaristo Villa, Managing Director of Services of ENDESA and Jose Antonio Lopez, Modernization and Structural Change Director of CFE, have been appointed as decision makers in all areas related to the development of the agreement.

As a result, though a close relationship with CFE, one of the key companies in Mexico, ENDESA is optimally positioned in such market.

The signing of this agreement is made independent of any investment project or any electric or renewable energy agreement that ENDESA or any of its affiliates may eventually participate together with CFE.

COMISION FEDERAL DE ELECTRICIDAD - CFE

CFE generates, transmits, distributes and markets electricity in Mexico to 19.31 million customers with an 81% market share. CFE also operates 156 power plants with a total generation capacity of 37,650MW and 36,848 Km of transmission lines.