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Endesa Puts Euro 1 Billion Worth of Real Estate Assets up for Sale via Bolonia Real Estate.

NEW YORK -- Endesa (NYSE:ELE):

--Bolonia manages 140 million m2 of land with more than two million m2 of land which can be built on.

--Sales worth Euro 122 million were concluded in 2005.

--Projected sales of Euro 250 million and land availability make Bolonia one of the leading land management portfolios in Spain.

--The Balearic Islands, Catalonia and Andalusia are its largest markets, with emblematic projects in Palma de Mallorca, Barcelona and Malaga.

--More than 3,200 hectares of land have been restored, providing land in especially valuable protected areas.

Endesa (NYSE: ELE) will obtain revenues of around Euro one billion from urban development projects in several autonomous regions via Bolonia Real Estate, the company created in July 2005 to manage its real estate assets, primarily land.

Prominent among current projects for their emblematic value and their influence on the urban environment are those in Palma de Mallorca (with 170,000 m2 of land which can be built on), Barcelona, where more than 116,000 m2 of land are available and which will be the most important project since the 1992 Olympic Games in the sea front of Barcelona; and Malaga, where the 153,000 m2 of land on the city's seafront promenade will radically alter the appearance of the area.

Bolonia currently manages around thirty projects in Catalonia, Andalusia, the Balearic Islands, the Canary Islands, Galicia and Aragon.

Bolonia is introducing a model that goes beyond simply selling assets to become involved in the research and development of the new use of the land, be it in urban areas or rural settings.

This ensures integrated and sustainable development in the long-term, in line with Endesa's sustainability policy, by acting in three areas: environmental, social and economic

Contribution of land to the market

The real estate assets managed by Bolonia are basically from plants and installations (former power stations and generation and distribution facilities, disused land and mines) which are no longer of use; these are therefore being put on the market in an orderly manner and in line with the aforementioned sustainability criteria.

Bolonia has so far identified and manages more than 140 million m2 of land in Spain; this is particularly significant at a time when scarcity of land is one of the main factors behind rising real estate prices. The land situated in Spain has potential building space of more than one million m2 and could generate revenues of Euro one billion by 2010.

Bolonia concluded 11 operations in 2005 worth Euro 122 million, generating a gross capital gain of Euro 105 million. In the five previous years, Endesa sold assets worth Euro 686 million.

The company expects to carry out sales worth Euro 250 million this year; which, along with its high availability of land, would make the company one of the leading players in the Spanish real estate sector.

Types of land

Bolonia manages two types of land according to its previous uses: urban and rural. The aim in both is to add value to the land cycle by generating the best project, as well as harmonising business objectives with those of the governments and social agents.

Therefore, in both types of land (urban and rural), Bolonia's management model goes beyond simple business diversification and real estate business, becoming involved in the new developments with the aim of creating value and, if appropriate, improving the environment, promoting integration with the regions in which it is present.

Urban assets

Its portfolio of urban real estate assets is in excellent locations in both established coastal and urban areas and developing mountain areas. In each case, Bolonia (which draws on Endesa's expertise in civil works, engineering and urban development) has a team that specialises in the technical and urban development of the land, and works in partnership with professionals and experts in town planning at a regional and local level.

The aim is to achieve perfectly integrated urban developments that generate high added value - both from a quality and economic perspective - for the urban environment of which they form part. The most emblematic examples are Palma de Mallorca, Barcelona and Malaga.

Bolonia also manages a portfolio of 83 million m2 in Latin America; primarily in the city of Santiago de Chile.

Management of natural environments

In locations where the project is being carried out in a natural environment, Bolonia aims to make the most appropriate use of the land, conserving and improving the environment by recovering spaces of high ecological value such as former rubbish dumps, mines, water resources and agricultural substrates.

The aim is also to add value to the land once its original use has been restored beyond simply dismantling the facility that had occupied the site until then. Bolonia's sites in natural areas are ideal places for scientific and environmental research.

In this area land drainage, agriculture, reforestation and low-impact renewable energy projects are identified for subsequent development; one such project is Belmez, where former rubbish dumps are to be replaced by a photovoltaic energy plant, or other sites where agreements have been negotiated with environmental organisations.

Endesa's experience in the field is backed by initiatives such as the more than 3,200 hectares of land recovered in mining areas and the Huinay Foundation (Chile), a project promoting sustainable development and the preservation of biodiversity in a 35,000-hectare natural area that is managed by its subsidiaries Enersis and Endesa Chile.

More information:

* 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.
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Publication:Business Wire
Date:Apr 5, 2006
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