The Combustion Gas Desulfurisation Project (CGD) at the Fossil Fuel Plant at Los Barrios Comes on Stream, ENDESA Continues with Its Action Plan to Reduce Power Station Emissions.

NEW YORK -- ENDESA (NYSE: ELE):

--The Los Barrios project will entail an investment of Euro 82 million and will be operative in 2006.

--The installation of the new CGD at this power station, which is equipped with a generating group of 567.5MW, will allow reductions in emissions of sulphur dioxide (SO(2)) of nearly 90% and a 48% reduction of particles. It will also be able to treat 100% of the combustion gases from the boiler.

--Similar desulphurisation plants have already been installed at the Compostilla II, Litoral de Almeria and Teruel stations, while those at Alcudia, Granadilla and Barranco de Tirajana have desulphurisation installations which differ slightly in design.

ENDESA (NYSE: ELE) has begun construction of a combustion gas desulphurisation plant at the Los Barrios power station, located in the province of Cadiz, as part of its ongoing Action Plan to reduce gas emissions at the Company's fossil fuel plants in Spain.

The Los Barrios project, which has installed capacity of 567.5 MW, will cost Euro 82 million and be operative in 2008.

The Los Barrios gas desulphurisation plant will treat nearly 100% of combustion gases, leading to a significant environmental improvement, with special attention being paid to the plant's emissions and their impact on the environment. This installation will bring about a reduction in emissions of sulphur dioxide (SO(2)) of nearly 90% and 48% of particles. It will also treat almost 100% of combustion gases.

The desulphurisation technique chosen is the "wet" type. This is a chemical process whereby the sulphur oxides produced in the carbon combustion processes are captured and washed as they come out of the boilers, they are then coated with limestone which reacts with the sulphur dioxide (SO(2)) producing calcic sulphite. The sulphite is then rusted by means of an injection of air and converted into calcic sulphite, in other words, gypsum, which can then be used in the construction industry. This desulphurisation system is the most widely used worldwide and, given its efficiency rate, is especially useful for coals with a high sulphur content.

The main activity will be the reduction of sulphur emissions as well as the modification of some electricity and control systems in the existing plant in order to adapt them to the new working conditions.

In order to carry out this project, technology from ALSTOM POWER ITALIA SpA will be used and will provide, in a consortium with INITEC Energia S. A., the major equipment under a turn-key contract. Endesa will provide the working teams, which will contribute their experience in carrying out similar projects, as well as the Company's own technology.

The desulphurisation plant is a major modernisation which will enable ENDESA to continue introducing cutting- edge technology to its fossil fuel assets which are essential for the environmental compatibility of its activities and in meeting the requirements of the 2001/80/EC Directive dated 23 October 2001 on limiting the emissions of certain contaminating agents into the atmosphere from large combustion plants (GIC Directive) which was translated into Spanish legislation by the 430/2004 Royal Decree of 12 March 2004.

The installation of the new desulphurisation plant will enable ENDESA to continue with its action plan to reduce power station emissions contained in its Strategic Plan. In this sense, ENDESA already has plants installed at its Teruel (Andorra-Teruel), Compostilla (Ponferrada-Leon), Litoral de Almeria (Almeria), Alcudia (Mallorca), Granadilla (Tenerife) and Barranco de Tirajana (Gran Canaria) power stations which are showing positive results.

The wet system has been installed at the Teruel, Compostilla and Litoral de Almeria power plants, similar to that at the Los Barrios station, whilst the Alcudia plant uses coals with a sulphur content of less than 1%, which requires the use of a semi-dry system. The Barranco de Tirajana and Granadilla plants use sea water.

The plan also contemplates the installation of new desulphurisation plants or the adaptation of ones that already exist at the Compostilla and Litoral de Almeria power stations.

* 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 Folleto Informativo Continuado 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, 2003. For all of these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.