Thanks to the addition of 460 MW of new capacity, the Company ended the quarter with total installed capacity of 8,164 MW*, consolidating its leadership position in the global wind energy business**

IBERDROLA RENOVABLES GENERATES NET PROFIT OF €126.4 MILLION (UP 170%) IN THE FIRST QUARTER, MORE THAN FOR ALL OF 2007

• Recurring EBITDA jumped 123% in the first quarter to €357 million, driven by 80% higher capacity and output
• IBERDROLA’s renewables business’ global pipeline increased 1,227 MW to total 43,280 MW
• IBERDROLA RENOVABLES generated net profit of €126.4 million in 1Q08, up 170% year-on-year, and higher than net profit for all of 2007.
• Recurring EBITDA soared 123% to €357 million over the same period while EBIT rose 108,2% to €219.7 million. Gross operating profit doubled year-on-year to €425 million. 
• This robust first quarter earnings performance was primarily underpinned by an 80% jump in both installed capacity and output.

More specifically, IBERDROLA RENOVABLES added 460 MW of new capacity during 1Q08. This rate of new capacity completion is higher than the historical average for the first quarter and brings total capacity to 8,164 MW: 7,822* MW in wind farms and 342 MW in mini-hydro facilities.

At the same time, the global pipeline increased 1,227 MW to 43,280 MW. First quarter output, meanwhile, stood at 4.898*** billion kilowatt hours (kWh), thanks to significantly higher load factors year-on-year.

IBERDROLA’s renewable energy business continued to consolidate its leadership of the global wind energy sector** during the first quarter, putting in place the foundations for delivering on the targets set out in its 2008-2010 business plan, which calls for investment of €8.6 billion to bring capacity to 13,600 MW by 2010. Construction is already underway on an additional 1,367 MW and is slated to begin on a further 643 MW during the second quarter, making good progress to the target of adding 2,000 MW in all of 2008.

In Spain, EBITDA was a noteworthy €210 million (59% of the total), up 46% on the first quarter of 2007, driven by higher output. The Company has 4,681 MW of installed capacity in Spain, spread across 13 regions.

Increasing contribution by the US and UK businesses

The US wind energy business accounted for 13.7% of the total wind business, generating EBITDA of €41.2 million, while the UK contributed 10% (€29.1 million), with the rest of the world accounting for 7% (€21 million). IBERDROLA RENOVABLES ended the first quarter of 2008 with 3,483* MW of installed wind capacity outside of Spain, of which 2,392* MW is installed in the US and 428 MW in the UK. The remaining 663 MW is mainly located in Europe, with significant capacity in Greece (217 MW), France (154 MW), Poland (123 MW), Germany (63 MW) and Portugal (56 MW).

Highlights of the quarter include the inauguration of the El Marquesado wind farm complex in Granada, the largest in Andalusia and the second largest in Europe, the initiation of pilot tests on the Santoña wave energy facility in Cantabria, the acquisition of 51% of Eólica 2,000, the company that owns the sole wind farm in Cantabria, and the start-up of the Group’s largest wind farm worldwide, Klondike III in the US.

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*  Includes 606 MW owned by a third party acquired under power purchase agreements
**  Source: New Energy Finance (May 2007).
*** Includes 400 MW acquired from a third party under power purchase agreements

DISCLAIMER

This communication does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities. The shares of Iberdrola Renovables, S.A. may not be offered or sold in the United States of America except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.