Endesa Chile Announces Consolidated Results for the Nine Months Ended September 30, 2001.

Business Editors

SANTIAGO, Chile--(BUSINESS WIRE)--Nov. 5, 2001

Endesa Chile (NYSE: EOC), announced today its consolidated financial results for the nine months ended September 30, 2001.

All figures are in constant Chilean pesos and are in accordance with Chilean Generally Accepted Accounting Principles (GAAP) as required by Chilean authorities (FECU). September 2000 figures have been adjusted by the CPI variation year-to-year, equal to 3.8%. The figures in dollars were calculated based on the September 30, 2001 exchange rate.

The consolidated financial statements of Endesa-Chile, for the period ended September 30, 2001, include all of the Company's Chilean subsidiaries, as well as its Argentinean subsidiaries Hidroelectrica El Chocon S.A., Central Costanera S.A. and Central Buenos Aires, its Colombian subsidiaries Central Hidroelectrica de Betania S.A. and EMGESA, its Brazilian subsidiary Centrais Eletricas Cachoeira Dourada S.A., and its Peruvian subsidiary Edegel.

Highlights for the Period Include

Endesa Chile's net income as of September 30, 2001 increased 296% to US$ 60.6 million, compared with a net loss of US$ 30.9 million for the corresponding 2000 period, mainly due to:

a) An improvement in the Company's operating income of US$ 81.6

million or 29.5% on a comparable basis (excluding the

transmission company Transelec for the same period of 2000).

b) A US$ 39.7 million decrease in financial expenses, associated

with a decrease in liabilities and lower international

interest rates.

c) A net negative effect of US$ 82.3 million resulting from

exchange difference and price level restatement, partially

compensated by US$ 45.1 million of income from forward

contracts.

                     Consolidated Income Statement
                     (Chilean GAAP, thousand US$)

Table 1.1
                              (Chilean GAAP, thousand US$)
                                3Q 00     3Q 01      Var      Chg %
Operating Revenues          1,002,901  1,100,762    97,861     9.8%
Operating Expenses           (647,134)  (705,404)  (58,270)    9.0%
Operating Margin              355,768    395,358    39,591    11.1%

SG&A                          (32,019)   (37,132)   (5,112)   16.0%

Operating Income              323,748    358,226    34,478    10.6%

Net Financial Income
 (Expenses)                  (265,444)  (226,358)   39,086   (14.7%)
 Interest Income               23,349     22,712      (637)   (2.7%)
 Interest Expense            (288,793)  (249,070)   39,723   (13.8%)
Net Income from Related
 Companies                     (6,099)   (15,924)   (9,825)  161.1%
 Equity Gains from Related
  Companies                     3,053      4,362     1,310    42.9%
Equity Losses from Related
 Companies                    (9,152)   (20,286)  (11,134)  121.7%
Net other Non Operating
 Income (Expense)              25,582     86,033    60,451   236.3%
 Other Non Operating Income    81,949    114,637    32,688    39.9%
 Other Non Operating
  Expenses                    (56,366)   (28,604)   27,763   (49.3%)
Positive Goodwill
 Amortization                  (7,506)    (8,919)   (1,412)   18.8%
Price Level Restatement        71,333      7,677   (63,657)  (89.2%)
Exchange differences          (86,054)  (104,664)  (18,611)   21.6%
Non Operating Income         (268,187)  (262,154)    6,032    (2.2%)
Net Income b. Taxes, Min Int
and Neg Goodwill Amort         55,562     96,072    40,510    72.9%

Income Tax                    (57,324)   (41,785)   15,540   (27.1%)
Minority Interest             (71,656)   (44,293)   27,364   (38.2%)
Negative Goodwill
 Amortization                   42,508     50,652    8,143    19.2%

NET INCOME                    (30,910)    60,647    91,557   296.2%

                     Consolidated Income Statement
                      (Chilean GAAP, million Ch$)

Table 1.2

                                       (Chilean GAAP, million Ch$)
                                 3Q 00      3Q 01     Var     Chg %
Operating Revenues              697,036   765,052    68,015    9.8%
Operating Expenses             (449,771) (490,270)  (40,499)   9.0%
Operating Margin                247,266   274,782    27,516   11.1%

SG&A                            (22,254)  (25,807)   (3,553)  16.0%

Operating Income                225,012   248,974    23,963   10.6%


Net Financial Income (Expenses)(184,489) (157,323)   27,165  (14.7%)
 Interest Income                 16,228    15,785      (443)  (2.7%)
 Interest Expense              (200,717) (173,109)   27,608  (13.8%)
Net Income from Related
 Companies                       (4,239)  (11,067)   (6,828) 161.1%
 Equity Gains from Related
  Companies                       2,122     3,032       910   42.9%
 Equity Losses from Related
  Companies                      (6,361)  (14,099)   (7,739)
Net other Non Operating Income
  (Expense)                      17,780    59,795    42,015  236.3%
 Other Non Operating Income      56,956    79,675    22,719   39.9%
 Other Non Operating Expenses   (39,176)  (19,880)   19,296  (49.3%)
Positive Goodwill Amortization   (5,217)   (6,199)     (982)  18.8%
Price Level Restatement          49,578     5,335   (44,243) (89.2%)
Exchange differences            (59,809)  (72,744)  (12,935)  21.6%
Non Operating Income           (186,395) (182,203)    4,193   (2.2%)
Net Income b. Taxes, Min Int
 and Neg Goodwill Amort          38,616    66,772    28,155   72.9%

Income Tax                      (39,841)  (29,041)   10,800  (27.1%)
Minority Interest               (49,803)  (30,784)   19,018  (38.2%)
Negative Goodwill Amortization   29,544    35,204     5,660   19.2%

NET INCOME                      (21,483)   42,151    63,634  296.2%

            Comparatives Consolidated Income Statement
                      Pro Forma without Transelec
                      (Chilean GAAP, million Ch$)

Table 1.3
                                (Chilean GAAP, thousand US$)
                              3Q 00        3Q 01       Var     Chg %
                     (Without Transelec)
Operating Revenues             990,797  1,100,762   109,965    11.1%
Operating Expenses            (682,100)  (705,404)  (23,304)    3.4%
Operating Margin               308,697    395,358    86,661    28.1%

SG&A                           (32,029)   (37,132)   (5,103)   15.9%

Operating Income               276,668    358,226    81,558    29.5%

Net Financial Income
 (Expenses)                   (249,325)  (226,358)   22,967    (9.2%)
 Interest Income                39,628     22,712   (16,916)  (42.7%)
 Interest Expense             (288,953)  (249,070)   39,883   (13.8%)
Net Income from Related
 Companies                      (6,099)   (15,924)   (9,825)  161.1%
Net other Non Operating
 Income (Expense)               53,016     86,033    33,017    62.3%
 Other Non Operating Income    111,664    114,637     2,973     2.7%
 Other Non Operating Expenses  (58,648)   (28,604)   30,045   (51.2%)
Positive Goodwill
 Amortization                   (7,506)    (8,919)   (1,412)   18.8%
Price Level Restatement +
 Exchange Differences          (11,799)   (96,988)  (85,188)  722.0%
Non Operating Income          (221,714)  (262,154)  (40,441)   18.2%

Net Income b. Taxes, Min Int
 and Neg Goodwill Amort         54,954     96,072    41,118    74.8%

Income Tax                     (56,717)   (41,785)   14,932   (26.3%)
Minority Interest              (71,656)   (44,293)   27,364   (38.2%)
Negative Goodwill
 Amortization                   42,508     50,652     8,143    19.2%
NET INCOME                     (30,910)    60,647    91,557   296.2%


            Comparatives Consolidated Income Statement
                      Pro Forma without Transelec
                      (Chilean GAAP, million Ch$)
Table 1.4
                                  (Chilean GAAP, million Ch$)
                                   3Q 00     3Q 01     Var      Chg %
                                (Without Transelec)
Operating Revenues               688,624    765,052   76,428    11.1%
Operating Expenses              (474,073)  (490,270) (16,197)    3.4%
Operating Margin                 214,551    274,782   60,231    28.1%

SG&A                             (22,261)   (25,807)  (3,546)   15.9%

Operating Income                 192,290    248,974   56,685    29.5%

Net Financial Income (Expenses) (173,286)  (157,323)  15,963    (9.2%)
 Interest Income                  27,542     15,785  (11,757)  (42.7%)
 Interest Expense               (200,828)  (173,109)  27,719   (13.8%)
Net Income from Related
  Companies                       (4,239)   (11,067)  (6,828)  161.1%
 Equity Gains from Related
  Companies                        2,122      3,032      910    42.9%
 Equity Losses from Related
  Companies                       (6,361)   (14,099)  (7,739)
Net other Non Operating Income
 (Expense)                        36,847     59,795   22,948    62.3%
 Other Non Operating Income       77,609     79,675    2,066     2.7%
 Other Non Operating Expenses    (40,762)   (19,880)  20,882   (51.2%)
Positive Goodwill Amortization    (5,217)    (6,199)    (982)   18.8%
Price Level Restatement +
 Exchange Differences             (8,201)   (67,408) (59,208)  722.0%
Non Operating Income            (154,096)  (182,203) (28,107)   18.2%
Net Income b. Taxes, Min Int
and Neg Goodwill Amort            38,194     66,772   28,578    74.8%

Income Tax                       (39,419)   (29,041)  10,378   (26.3%)
Minority Interest                (49,803)   (30,784)  19,018   (38.2%)
Negative Goodwill Amortization    29,544     35,204    5,660    19.2%

NET INCOME                       (21,483)    42,151   63,634   296.2%

Main Events during the Period

Tariffs in Chile

Regulated node prices for the Interconnected Central System (SIC), were set at US$ 34.34 per MWh (monomic price at Alto Jahuel) by the National Energy Commission (NEC) in October 2001. Although prices increased by 12.3% in Chilean pesos, in dollars the figure is 3.1% lower compared with the price set in April 2001 at US$ 35.44 per MWh. The drop in the node price can be explained by a seasonal effect due to plentiful rainfall and higher reservoir levels during the second half of the year in the Central Interconnected System.

Investments

In regards to Company investments, progress on the construction of the Ralco project had amounted to 44.9 % by the end of September 2001. As a result of a significant increase in the Bio Bio River volume (brought on by heavy rains), the temporary dam (cofferdam) at the Ralco Power Plant was damaged, which will set back the project's construction activities. In order to minimize delays in construction caused by the above-mentioned situation, the company has defined a new plan allowing for the start up of the first generating unit in December 2003 and the second one during the first few months of 2004. It is important to mention that the company has full insurance protecting against physical damages and the lost of profits related to the delay of the project.

Likewise, construction on the second interconnection line between Argentina and Brazil, undertaken by the CIEN consortium where the Company has a 45% share, progressed by 59%.

Rationing in Brazil

Due to the critical level of the reservoirs and poor rainfall conditions in Brazil, since June 1st, 2001, the government has been applying electricity rationing in the southeast system in Brazil where our subsidiary Cachoeira Dourada is located. According to assessments carried out by the company, there would be no material effects on the consolidated results of Endesa Chile.

Sale of Infraestructura 2000

At an extraordinary meeting of Endesa Chile's Board, held on April 17, 2001, the Company agreed to sell its 60% stake in Infraestructura 2000 to Obrascon Huarte Lain S.A. (OHL) for approximately US$ 59.4 million.

Sale contracts for this transaction will be signed once pre-conditions are met. Said preconditions include, among other things, obtaining various relevant official permits.

Once the sale is complete, Endesa-Chile will remove Infraestructura 2000's debt from its Consolidated Balance Sheet (approximately US$ 174 million). In addition, proceeds from the sale of shares will also be applied to reduce debts. The operation will lead to a total debt reduction by Endesa-Chile of approximately US$ 233 million.

Endesa Chile increase its participation in Cachoeira Dourada

During August, Endesa Chile, through its indirect subsidiary Lajas Holding, took control of 99.51% of Cachoeira Dourada (CDSA) after acquiring a 0.67% shareholding in this generating company from minority shareholders on August 9. The transaction was carried out under a Sao Paulo stock exchange auction.

At the end of June, Lajas Holding held 98.84% of CDSA and launched a public offering for the remaining shares. Endesa Chile acquired 19,662,674 shares at the auction at a price of R$ 262.71 per thousand shares, implying a disbursement of approximately US$ 2.2 million.

Debt Refinancing

During August, Endesa Chile entered into a syndicated loan agreement used to restructure the liabilities of the company. The loan, for an aggregate amount of US$ 500 million, is structured over a three-year bullet and at Libor plus a margin.

Operating Income

Operating income amounted to US$ 358.2 million, which is 10.6 % greater than the same period of 2000, but 29.5% greater if Transelec's operating income is excluded from the 2000 consolidated operating income. The increase in operating income can basically be explained by better performance demonstrated by operations in Chile, Colombia and Peru, which was partly compensated by a decrease in Argentina's and Brazil's operating income.

In Argentina, a drop in the average energy prices and in physical energy sales at the Costanera thermoelectric power plants, brought on by the end of contracts with distributors, resulted in a 21.7% decrease in Argentina's operating income, totaling US$ 48.4 million. Nonetheless, due to an increase in water volume and reservoir levels, generation at the El Chocon hydroelectric power plant soared 137.3%, thereby boosting its operating income by 256.7%.

In Brazil, Cachoeira Dourada's operating income dropped by 15.8%, totaling US$ 26.8 million, which can basically be explained by decreased generation and more energy purchased due to the critical level of the reservoirs in the rationing in the system.

In Chile, operating income grew by 27.5 % compared to the same period last year, amounting to a total of US$ 127.4 million brought on primarily by a 25.8 % increase in the average price of energy sales, which can be attributed to higher regulated prices and spot market prices, in addition to a 21.1% increase in hydraulic generation associated with greater volumes of water in regions where the largest reservoirs are located, in fact during July Endesa Chile beat its hydroelectric generation record achieving 1.600 GWh.. Increased hydraulic generation has meant an approximate decrease of US$ 8.1 million in the cost of fuel and energy purchases in Chile.

In Colombia, operating income jumped 17.2% amounting to US$ 82.1 million, primarily due to a 15.4 % increase in average sales prices and a 4.8 % rise in physical energy sales. This increases in prices is by and large due to restrictions placed on the transmission of electric power in the Colombian system during the first few months of 2001.

The Edegel subsidiary in Peru also contributed to the increased consolidated operating income. Edegel's operating income grew by 22.2 %, totaling US$ 73.5 million, primarily because of a 19.9 % increase in physical energy sales brought on by higher reservoir levels and 191 MW of new hydraulic capacity.

Non-Operating Income

Non-operating losses decreased 2.2% to US$ 262.2 million from US$ 268.2 million recorded in the same period in 2000. The increase was mainly the result of:

-- A lower result of US$ 82.3 million resulting from Exchange

Difference and Price Level Restatement

-- A US$ 9.8 million decrease in equity income from related

companies.

Partially offset by:

-- Lower interest expenses of US$39.7 million, and

-- Higher net other non-operating income by US$ 45.1 million, due

to profits in forward contracts.

Interest income decreased 2.7% to US$ 22,7 million, down from US$ 23.3 million in the same period of 2000. This decrease is primarily attributable to lower cash balances at Central Costanera partially compensated by higher interest income from Colombian operations.

Interest expense decreased 13.8% to US$ 249.1 million, down from US$ 288.8 million in the same period of 2000. The decrease in interest expense was largely due to the significant decrease in financial debt during the Second Half of 2000 and the First Half of 2001 and a decrease in the market interest rate, both of which were partially offset by an increase in the exchange rate (Chilean pesos per dollar).

Net Income from related companies, decreased to a US$ 15.9 million loss from a US$ 6.1 million loss in 2000, which is mainly due to the effect of lower results in Electrogas and CIEN.

Other non-operating income totaled US$ 114.6 million compared with US$ 81.9 million for the 2000 same period. This increase is primarily due to higher gains from forward contracts, partially compensated by the decrease in other non-operating income in our international operations related to income booked during the same period of 2000.

Goodwill amortization was US$ 8.9 million, compared with US$ 7.5 million for the same period of 2000. This increase is explained by the accounting effect of the depreciation of the Chilean peso in relation to the U.S. dollar in real terms.

Other non-operating expenses decreased 49.3% to US$ 28.6 million, down from US$ 56.4 million in the same period of 2000. The decrease in other non-operating expenses was primarily due to expenses booked during 2000 related to operating expenses from previous years.

The price-level restatement totaled US$ 7.7 million, compared with US$ 71.3 million for the corresponding period in 2000, primarily due to a 2.2% inflation rate during the nine month period of 2001 compared with a 3.1% inflation rate for the same period in 2000.

Exchange differences resulted in a loss of US$ 104.7 million, compared to a loss of US$ 86.1 million for the same period in 2000. The exchange-rate difference reflects the 21.2% increase in the exchange rate during the January-September 2001 period, compared with the same period last year when the exchange rate increased by 6.3 %.

Income tax totaled US$ 41.8 million representing a 27.1% decrease compared with the same period last year, primarily due to lower results recorded in Argentina.

                Consolidated Balance Sheet Analysis
      The evolution of the key financial indicators has been as follows:

Table 2

Assets(million Ch$) Sept-00    Sep-01        Sep 01-00     Var% 01-00
Current Assets     292,086      376,764        84,678          29.0%
Fixed Assets     5,518,782    5,610,594        91,812           1.7%
Other Assets       422,908      477,143        54,236          12.8%
Total Assets     6,233,776    6,464,501       230,726           3.7%

Table 2.1

Assets(thousand US$)(1)Sept-00   Sep-01      Sep 01-00     Var% 01-00
Current Assets       420,255    542,091       121,835          29.0%
Fixed Assets       7,940,465  8,072,565       132,100           1.7%
Other Assets         608,483    686,517        78,035          12.8%
Total Assets       8,969,203  9,301,173       331,970           3.7%

The Company's total assets increased US$ 332.0 million compared with the same period in 2000 as a result of the effect of the depreciation of the Chilean peso in relation to the U.S. dollar in real terms, which was partially offset by the exclusion of Transelec.

Table 3

Liabilities(million Ch$) Sept-00    Sep-01     Sep 01-00    Var% 01-00
Current liabilities      662,666     512,109   (150,557)  (22.7%)
Long-term liabilities  3,134,501   3,100,702    (33,799)   (1.1%)
Minority interest      1,246,335   1,479,461    233,125    18.7%
Equity                 1,190,273   1,372,229    181,956    15.3%
Total Liabilities      6,233,776   6,464,501    230,726     3.7%

Table 3.1

Liabilities(thousand US$)  Sept-00    Sep-01     Sep 01-00  Var% 01-00
 Current liabilities        953,449     736,827   (216,622)  (22.7%)
 Long-term liabilities(2) 4,509,944   4,461,314    (48,631)   (1.1%)
 Minority interest        1,793,237   2,128,659    335,422    18.7%
 Equity                   1,712,573   1,974,374    261,800    15.3%
 Total Liabilities        8,969,203   9,301,173    331,970     3.7%

(1) Ch$ figures divided by September 2001 exchange rate of 1
    US$ = $ 635.02
(2) Given that the Company's financial debt is mainly denominated in
    dollars, a more meaningful comparison is to calculate the amount
    considering the exchange rate of each period (1US$ = 563.49 in
    September 2000 and 1US$ = 695.02 in September 2001). By doing this
    analysis you see that the decrease from Third Quarter 2000 to
    Third Quarter 2001 is approximately US$ 1,294 million.

Total liabilities decreased US$ 265.2 million, primarily due to the reduction of financial debt during the last quarter of 2000 related to proceeds from the sale of Transelec, and better operating results.

Minority interest increased US$ 335.4 million. This increase is mainly explained by the accounting effect of the depreciation of the Chilean peso in relation to the U.S. dollar in real terms.

Equity increased US$ 261.8 million compared to the same period of 2000. This increase is mainly explained by retained earnings coming from results as of December 2000, and the positive results booked as of September 2001.

Table 4
Indicator           Unit            Sep-00 Sep-01 Sep 01-00 %Var 01-00

Liquidity           Times            0.44      0.74      0.30   68.2%
Acid ratio test(1)  Times            0.29      0.52      0.23   79.3%
Leverage(2)         Times            1.56      1.27     (0.29) (18.6%)
Short-term debt     %                17.5      14.2     (3.30) (18.9%)
Long-term debt      %                82.5      85.8      3.30    4.0%
Working capital    million Ch$   (370,580) (135,346)  235,235  (63.5%)
Working capital    thousands US$ (533,194) (194,736)  338,458  (63.5%)

      (1) Current assets net of inventories and pre-paid expenses
      (2) Compounds to the ratio = Total debt / (equity + minority
        interest)

Endesa Chile's working capital increased US$ 338.5 million compared with 2000, basically due to a higher cash balance and accounts receivable in Chile explained by better operating performance during the first nine months of 2001.

The Company's liquidity levels are considered normal for hydroelectric generators, considering that current liabilities are the current portion of long term obligations for the next twelve months, and current assets only take into consideration accounts receivables for a month. The main input of hydro-facilities is water, and both snow and water reservoirs are not considered current assets in the accounting figures. It is also worth noting that the Company's main operating cost is depreciation, which does not impact cash flow.

                      Consolidated Balance Sheet
                            (Chilean GAAP)

Table 5.1
                               Million Ch$          Thousand US$
                            3Q 00       3Q 01      3Q 00     3Q 01
CURRENT ASSETS
Cash                         4,624      5,949      6,653      8,559
Time Deposits               39,675     67,047     57,085     96,468
Marketable Securities           43      1,436         62      2,066
Accounts Receivable, net    83,231     90,172    119,753    129,740
Notes receivable             5,309      6,556      7,638      9,432
Other accounts receivable   19,562     14,240     28,146     20,489
Amounts due from related
 companies                  40,722     80,002     58,591    115,107
Inventories,net             21,785     26,643     31,344     38,334
Income taxes recoverable    43,083     50,493     61,988     72,649
Prepaid expenses             6,207      4,546      8,931      6,541
Deferred income taxes        3,436      1,642      4,944      2,363
Other current assets        24,409     28,038     35,120     40,341

Total currrent assets      292,086    376,764    420,255    542,091

PROPERTY, PLANT AND
 EQUIPMENT
Property                    42,109     39,069     60,587     56,213
Buildings and
 Infraestructure         5,520,039  6,034,561  7,942,274  8,682,572
Plant and equipment      1,073,498  1,160,621  1,544,557  1,669,910
Other assets               340,376     76,646    489,736    110,278
Technical appraisal        598,028    680,167    860,447    978,629

    Sub - Total          7,574,050  7,991,063 10,897,600 11,497,602

Acumulated depreciation  2,055,267  2,380,469  2,957,134  3,425,037

Total property, plant and
 equipment               5,518,782  5,610,594  7,940,465  8,072,565

OTHER ASSETS

Investments in related
 companies                 147,497    168,057    212,219    241,801
Investments in other
 companies                  66,458     78,545     95,621    113,011
Positive Goodwill          114,141    127,380    164,227    183,275
Negative goodwill         (189,261)  (179,921)  (272,311)  (258,872)
Long-term receivables       15,462     34,344     22,246     49,415
Amounts due from related
 companies                 144,488    175,775    207,890    252,906
Deferred taxes                   0          0          0          0
Intangibles                 27,903     30,149     40,147     43,379
Accumulated amortization    (1,604)    (3,685)    (2,308)    (5,301)
Others                      97,825     46,499    140,751     66,903

Total other assets         422,908    477,143    608,483    686,517
TOTAL ASSETS             6,233,776  6,464,501  8,969,203  9,301,173

                      Consolidated Balance Sheet
                            (Chilean GAAP)

Table 5.2
                                  Million Ch$          Thousand US$
                             3Q 00       3Q 01       3Q 00    3Q 01
LIABILITIES AND
SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Due to banks and financial
 institutions:
Short Term                   43,687      59,647     62,857      85,820
Current portion of
 long-term debt             187,695     200,845    270,057     288,977
Current portions of bonds
 payable                     41,266      50,219     59,374      72,256
Current portion of other
 long-term debt              27,362      32,239     39,368      46,386
Dividends payable               116          54        166          78
Accounts payable and
 accrued expenses            43,198      61,614     62,153      88,651
Miscellaneous payables        8,603       6,856     12,378       9,864
Amounts payable to related
 companies                  233,815      36,756    336,415      52,885
Provisions                   36,725      28,177     52,840      40,541
Withholdings                 11,722      20,009     16,865      28,789
Income Tax                   18,628       5,207     26,802       7,492
Deferred Taxes                    0           0          0           0
Other current liabilities     9,851      10,487     14,173      15,088

Total current liabilities   662,666     512,109    953,449     736,827

LONG-TERM LIABILITIES

Due to banks and financial
 institutions             1,657,711   1,320,216  2,385,127   1,899,536
Bonds payable             1,207,987   1,467,829  1,738,061   2,111,924
Notes payable               180,403     191,735    259,565     275,870
Accounts payable             28,319      28,053     40,745      40,362
Amounts payable to related
 companies                   21,950      39,015     31,582      56,135
Accrued expenses             19,807      30,701     28,499      44,172
Deferred taxes               17,328      19,252     24,931      27,699
Other long-Term
 liabilities                    997       3,902      1,435       5,614

Total Long-term
 liabilities              3,134,501   3,100,702  4,509,944   4,461,314

Minority interest         1,246,335   1,479,461  1,793,237   2,128,659

SHAREHOLDERS' EQUITY
Paid-in capital, no par
 value                      970,740     979,157  1,396,708   1,408,818
Additional paid-in
 capital-share premium      226,419     217,841    325,773     313,431
Other reserves               55,208      72,635     79,433     104,507

Total Capital and
 Reserves                 1,252,366   1,269,632  1,801,914   1,826,756
Accumulated surplus
 (deficit) during
development period of
 certain subsidiaries           485       2,094        698       3,012

RETAINED EARNINGS
Retained earnings                        58,353                 83,959
Retained Losses             (41,096)               (59,129)
Net Income                  (21,483)     42,151    (30,910)     60,647
Interim dividends                 0           0          0           0
Total Retained Earnings     (62,579)    100,503    (90,039)    144,605
Total Shareholder's
 Equity                   1,190,272   1,372,229  1,712,573   1,974,374
TOTAL LIABILITIES AND
 SHAREHOLDER'S EQUITY     6,233,775   6,464,501  8,969,203   9,301,173


                        Consolidated Cash Flow
                            (Chilean GAAP)
Table 6

Effective Cash Flow
 (million Ch$)              Sep-00      Sep-01   Sep 01-00 % Var 01-00
Operating                   257,916     260,023       2,107      0.8%
Financing                  (215,218)   (226,509)    (11,291)     5.2%
Investment                  (84,053)      5,267      89,320   (106.3%)
Net cash flow of the period (41,355)     38,780      80,135    193.8%

Table 6.1

Effective Cash Flow
 (thousand US$)             Sep-00      Sep-01    Sep 01-00 %Var 01-00
Operating                   371,091     374,122      3,031       0.8%
Financing                  (309,657)   (325,903)   (16,246)      5.2%
Investment                 (120,936)      7,578    128,514    (106.3%)
Net cash flow of the period (59,502)     55,797    115,299     193.8%

      The variation in the makeup of cash flow during the period is
basically explained by:

      a)  Cash flow from operating activities that slightly increased
        0.8% to US$ 374.1 million, which mainly reflects the effect of
        the drop in Central Costanera's operating results in
        Argentina, and the exclusion of Transelec's operating results
        in Chile.

      b)  Negative cash flow from financing activities of US$ 325.9
        million primarily produced by a net decrease in liabilities.

      c)  Positive cash flow from investment activities of US$ 7.6
        million, which was the result of gains in forward contracts,
        collections on loans to related companies and sales of Fixed
        assets in Chile.

                        Consolidated Cash Flow
                            (Chilean GAAP)

Table 7
                              Million Ch$          Thousand US$
                            3Q 00    3Q 01       3Q 00        3Q 01
CASH FLOWS ORIGINATED FROM
 OPERATING ACTIVITIES
Net income (loss) for the
 year                      (21,483)  42,151    (30,910)   60,647
Charges (credits) which do
 not represent cash flows:
Depreciation                142,578   141,145   205,143    203,080
Amortization of intangibles  14,377     3,719    20,686      5,350
Amortization of positive
 goodwill                     5,217     6,199     7,506      8,919
Amortization of negative
 goodwill(less)             (29,544)  (35,204)  (42,508)   (50,652)
(Profit) loss on sale of
 fixed assets                (1,012)   (4,028)   (1,456)    (5,795)
(Profit) on sales of
 investments                    -.-       -.-       -.-        -.-
Accrued profit from related
 companies( less)             4,239    11,067     6,099     15,924
Minority interest            49,803    30,784    71,656     44,293
Net, price-level
 restatement                (49,578)   (5,335)  (71,333)    (7,677)
Net exchange difference      59,810    72,744    86,055    104,664
Dividends received            5,332       488       -.-        -.-
Other credits which do not
 represent cash flow        (41,110)  (42,836)  (59,150)   (61,633)

Assets variations which
 affect cash flow:
Decrease (increase) in
 marketable securities        2,333    (1,636)    3,357     (2,353)
Decrease (increase) in
 receivable accounts         18,271    31,646    26,288     45,533
Decrease (increase) in
 receivable accounts from
 related companies           23,177    33,494    33,347     48,191
Decrease (increase) in
 inventories                 (1,243)    2,682    (1,789)     3,859
Decrease (increase) in
 other assets               (38,007)   (7,672)  (54,685)   (11,039)

Liabilities variations
 which affect cash flow:
Increase in current portion
 of long-term bank and
 other debt                  68,105   (26,945)   97,989    (38,769)
Increase in current portion
 of bonds payable            12,284    18,580    17,675     26,734
(Decrease) increase in
 dividends payable           (4,086)   (3,286)   (5,879)    (4,728)
Decreace (increase) in
 accounts payable          (38,789)    4,939   (55,810)     7,107
Increase in accounts
 payable to related
 companies                   93,137     9,686   134,006     13,936
Increase in accrued
 expenses and withholdings    9,947    (5,430)   14,312     (7,812)
(Decrease) increase in
 other liabilities          (25,839)  (16,929)  (37,178)   (24,358)
NET POSITIVE CASH FLOW
 ORIGINATED FROM OPERATING
 ACTIVITIES                 257,917   260,023   371,093    374,122

CASH FLOWS ORIGINATED FROM
 FINANCING ACTIVITIES
Shares issued and suscribed     -.-       -.-       -.-        -.-
Proceeds from loans wired   533,509   602,421   767,617    866,768
Proceeds from debt issuance  35,094    16,073    50,494        -.-
Proceeds from others loans
 obtained from related
 companies                  253,775   238,588   365,134    343,283
Proceeds from loans
 obtained from related
 companies                                          -.-       -.-
Other sources of financing      358    25,393       -.-        -.-
Dividends paid              (47,377)  (46,337)  (68,166)   (66,669)
Loans, debt amortization
 (less)                    (623,490) (729,404) (897,083)(1,049,472)
Issuance debt amortization
 (less)                     (93,514)  (89,865) (134,548)  (129,298)
Amortization of loans
 obtained from related
 companies                 (177,628) (231,618) (255,573)  (333,253)
Other disbursements related
 to financing(less)         (95,945)  (11,763) (138,047)   (16,924)
NET (NEGATIVE) CASH FLOW
 ORIGINATED FROM FINANCING
 ACTIVITIES                (215,218) (226,509) (309,657)  (325,903)

CASH FLOWS ORIGINATED FROM
 INVESTING ACTIVITIES
Sale of fixed assets          7,759    15,678    11,163     22,558
Sale of Long-term
 investments                   -.-       -.-       -.-        -.-
Collection upon loans to
 related companies            3,274    54,817     4,711     78,871
Other income on investments   3,934     3,064     5,661      4,408
Additions to fixed assets
 (less)                     (68,920)  (41,829)  (99,163)   (60,183)
Long-term investments(less)  (5,194)   (1,573)   (7,473)       -.-
Other loans provided to
 related companies(less)        -.-   (18,897)      -.-        -.-
Other investment
 disbursements(less)         (24,905)   (5,995) (35,834)    (8,626)
NET (NEGATIVE)CASH FLOW
 ORIGINATED FROM INVESTMENT
 ACTIVITIES                  (84,053)    5,266 (120,936)     7,577

NET POSITIVE CASH FLOW FOR
 THE PERIOD                  (41,354)   38,779  (59,500)    55,796

EFFECT OF PRICE-LEVEL
 RESTATEMENT UPON CASH AND
 CASH EQUIVALENT               3,197     5,014     4,599      7,214

NET VARIATION OF CASH AND
 CASH EQUIVALENT             (38,158)   43,793  (54,902)    63,010
INITIAL BALANCE OF CASH AND
 CASH EQUIVALENT              82,457    29,203   118,640     42,018
FINAL BALANCE OF CASH AND
 CASH EQUIVALENT              44,299    72,996    63,737    105,028


                         Business Information
                        Main Operating Figures
Table 8

Company              GWh sold      GWh sold    Dif 01-00    Var 01-00
                       3Q 2000      3Q 2001
Chilean Companies       13,781       13,933          152        1.10%
Chocon                   1,773        3,706        1,933      109.02%
Costanera                9,353        6,101       (3,252)     (34.77%)
CBA                      1,285          927         (358)     (27.86%)
Edegel                   2,665        3,195          530       19.89%
Betania                  1,943        1,895          (48)      (2.47%)
Emgesa                   8,361        8,906          545        6.52%
Cachoeira                2,916        2,536         (380)     (13.03%)


Company           GWh produced  GWh produced  Dif 01-00  Var 01-00
                     3Q 2000      3Q 2001
Chilean Companies     11,079       11,798          719      6.49%
Chocon                 1,526        3,621        2,095    137.29%
Costanera              5,139        3,735       (1,404)   (27.32%)
CBA                    1,160          768         (392)   (33.79%)
Edegel                 2,778        3,154          376     13.53%
Betania                1,909        1,398         (511)   (26.77%)
Emgesa                 5,656        6,325          669     11.83%
Cachoeira              2,515        1,822         (693)   (27.55%)


         Endesa Chile's Operating Income break down by country
                            (Chilean GAAP)
Table 9
                         Million Ch$          Thousand US$
                       3Q 00     3Q 01      3Q 00      3Q 01  Chg %
Operating Revenues   697,036   765,052  1,002,901  1,100,762    9.8%
Energy sales
Chocon                32,333    56,126     46,521     80,755   73.6%
Costanera            185,839   130,333    267,387    187,524  (29.9%)
Betania - Emgesa     130,577   157,974    187,875    227,294   21.0%
Cachoeira             41,043    40,053     59,053     57,629   (2.4%)
Edegel                62,217    83,123     89,518    119,598   33.6%
Chile                217,398   272,248    312,794    391,712   25.2%
Other revenues        27,629    25,193     39,753     36,248   (8.8%)

Operating Expenses   449,771   490,270    647,134    705,404    9.0%
Chocon                24,892    31,452     35,815     45,253   26.4%
Costanera            146,592   117,829    210,918    169,533  (19.6%)
Betania - Emgesa      79,012    97,506    113,683    140,292   23.4%
Cachoeira             17,629    19,911     25,365     28,648   12.9%
Edegel                17,551    26,286     25,253     37,820   49.8%
Chile                164,095   197,287    236,101    283,858   20.2%

Operating Margin     247,266   274,782    355,768    395,358   11.1%

SG&A                  22,255    25,808     32,019     37,132   16.0%
Chocon                   746       793      1,073      1,141    6.3%
Costanera              3,018     2,777      4,342      3,996   (8.0%)
Betania - Emgesa       2,941     3,424      4,232      4,926   16.4%
Cachoeira              1,302     1,545      1,873      2,223   18.7%
Edegel                 3,233     6,119      4,652      8,804   89.3%
Chile                 11,015    11,150     15,848     16,043    1.2%

Operating Income     225,010   248,974    323,748    358,226   10.7%

Conference Call Invitation

Endesa Chile is pleased to inform you that it will conduct a conference call to review its results for the nine moths ended September 30, 2001, on Thursday, November 8, 2001, at 8:30 am (New York time). To participate, please dial [phone] or [phone] (toll free USA), approximately 10 minutes prior to the scheduled starting time.

If you would like to take part in the Conference Call via the Internet, or listen to a webcast replay of the call you may access both at www.endesa.cl

This Press Release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Endesa Chile and its management with respect to, among other things: (1) Endesa Chile's business plans; (2) Endesa Chile's cost-reduction plans; (3) trends affecting Endesa Chile's financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Endesa Chile's or its affiliates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in equity capital markets of the United States or Chile, an increase in market interest rates in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Endesa Chile's Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of their dates. Endesa Chile undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.