Revenues at ENDESA's Subsidiary, Edesur, Are Set to Grow by 38% a Year Following the Tariff Revision Approved by the Government in Argentina.

* The resolution issued by the electricity sector regulator, ENRE, has led to the first tariff increase for the Argentine distribution company since the devaluation in 2002.

* This increase can be considered a milestone as not only will it significantly enhance Edesur's results but will also allow the company to pursue its investment plan aimed at improving its (already high) service quality.

NEW YORK -- Revenues at the Argentine power distribution company and ENDESA (NYSE:ELE) subsidiary, Edesur, are set to increase by Euro 4.7 million a month following the resolution passed by the government which recognises a 38% increase in remuneration for all tariff categories, except residential tariffs.

The publication in Argentina's Official Gazette of the Resolution made by the electricity sector regulator (ENRE) means the first tariff rise for ENDESA's subsidiary since the devaluation in 2002, and will bring into force the legal agreement to renegotiate Edesur's contract signed with UNIREN (the utility contract renegotiation unit) on 15 February 2006. This agreement was ratified by the Argentine government on 28 December 2006 through decree No 1959/06.

Over the next few years the approved tariff increase will compensate the increases which had been approved since November 2005 and not yet applied.

This increase marks a milestone in the process of restructuring ENDESA's subsidiary's economic/financial position, as it will not only mean a significant improvement in its results but it is also a fully-fledged tariff revision which should herald a new tariff framework.

We would also note that as part of the agreement subscribed Edesur and its shareholders had taken on various commitments which should have been met in 2006: most importantly, the execution of a Euro 54 million investment plan to address the increase in demand and improve the quality of the company's service.

With this new tariff framework, Edesur should be able to maintain its investment programme at around Euro 60 million a year, thereby further improving the quality of its service - already one of the best in Latin America.

* 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.