Endesa and Elecnor to Build Marine Wind Farms in Spain.

* The Cape Trafalgar Marine Wind Consortium joint venture will develop marine wind power projects using technology that leverages know-how gained in oil rigs

* Initially, the company will focus on the development of marine wind farms in the south of Spain

* Potential wind capacity in coastal areas of Spain has been estimated at around 3,000 MW, equivalent to one-quarter of current installed mainland capacity

NEW YORK -- Endesa Cogeneracion y Renovables, S.A. (ECyR), an affiliate of Endesa (NYSE:ELE) and Enerfin-Enervento, S.A., part of the Elecnor Group, announced yesterday that they have signed an agreement to jointly develop marine wind farm projects in Spain. To this end, they have incorporated a 50/50 joint venture company called Consorcio Eolico Marino Cabo de Trafalgar which translates as the Cape Trafalgar Marine Wind Consortium.

The construction of wind farms located in the sea is taking off rapidly in Northern Europe, particularly in Denmark and the UK. The potential for these projects in Spain is very significant. Today installed marine wind capacity stands at 700 MW worldwide, of which 400 MW are located in Denmark, 250 MW in the UK, with the remainder located across Sweden, Holland and Ireland.

The construction of these wind farms requires the use of very sophisticated technology based on know-how gained from oil rigs.

Several coastal areas of Spain are suitable for installing these facilities, primarily along the east and south coasts, where the sea is not very deep and the cost of installing the towers supporting the turbines is therefore lower. Potential wind capacity in coastal areas of Spain has been estimated at around 3,000 MW, equivalent to one-quarter of current installed mainland capacity.

Against this backdrop, in anticipation of government regulation in this segment, the new company will initially focus on developing marine wind farms in southern Spain, based on analysis pointing to the suitability of certain southern regions for the installation of these facilities.

With this initiative, ECyR, an Endesa subsidiary, and Enerfin-Enervento, part of the Elecnor Group, are reinforcing their wind energy bids by entering into new territory leveraging both companies' presence in land-based projects. This move will provide the Spanish wind energy sector with a further boost.

Endesa has pioneered the development of wind energy in Spain. It took its first steps in 1979 with the installation of several WTGs in the l'Alfabia mountain range on the island of Mallorca and in the Emporda region of Calalunya. Today, Endesa has shareholdings in Spanish wind farms with total capacity of over 1,400 MW, giving it a market share of over 13%.

Meanwhile, the main corporate purpose of Enerfin-Enervento, a company jointly owned by Elecnor (70%) and Banco Gallego and Caixa Nova (30%), is the integral development of wind generation projects. The company currently participates in operative wind farms with total capacity of over 650 MW, of which 450 MW are directly attributable to Enerfin-Enervento. Last December in Brazil, through its Ventos do Sul subsidiary, it began operating Latin America's largest wind farm with capacity of 150 MW.

Note: 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.