Company could be listed in Final Quarter

IBERDROLA RENOVABLES CHOOSES BBVA, CREDIT SUISSE, JP MORGAN, MERRILL LYNCH AND MORGAN STANLEY TO COORDINATE ITS MARKET LISTING

• Company to make a capital increase which will then be allocated through an Initial Public Offering (IPO)


• IBERDROLA, world leader in wind energy, has an installed capacity of 6,826 MW and a pipeline with another 40,152 MW

IBERDROLA Renovables has selected BBVA, Credit Suisse, JP Morgan, Merrill Lynch and Morgan Stanley as global coordinators of its market listing, planned for the last quarter of 2007, by means of an Initial Public Offering (IPO).

The listing of IBERDROLA Renovables, which would be one of the largest operations of its kind ever carried out in Spain, will be made trough a capital increase which will then be presumably allocated trough an IPO, involving an initial international institutional tranche, a Spanish institutional tranche and a retail tranche.

IBERDROLA’s renewables unit has engaged Albiñana & Suárez de Lezo and Uría Menéndez to provide legal advice on the operation in Spain, Latham & Watkins to supply legal advice in the Unites States, and Linklaters to provide legal advice in the United Kingdom.

The planned listing, announced last May, is intended to cristalise the value of this type of energies, taking advantage of excellent market conditions, and raising the funds needed to finance the company’s growth without affecting the financial strength of the IBERDROLA Group.

Within the framework of this process, IBERDROLA Renovables has just launched its new brand with the aim of stressing its commitment to environmental protection and sustainable development. Based on the IBERDROLA Group brand, it uses the descriptor Renovables for Spain and Latin America and Renewable Energy for the rest of the world.

IBERDROLA is the world’s leading producer of electricity from wind energy, and at the end of June it could boast a worldwide capacity of 6,826 MW. A pipeline of new wind projects totalling an additional capacity of 40,152 MW. Of this total, 51% is located in the United States, 16% in Spain, and 15% in the United Kingdom.

Thanks to the commissioning of new wind capacity amounting to 287 MW in the first two quarters (169 MW in the second quarter), and to the takeover of ScottishPower, which added 2,105 MW (1,741 MW in the U.S. and 364 MW in the U.K.), the IBERDROLA group now has 6,484 MW in wind farms and 342 MW from mini-hydro plants.

IBERDROLA’s renewable generation capacity in Spain, located in 13 regions, was increased by 220 MW in the six months, the product of new wind farms and mini-hydro plants and expansion of existing facilities: 73 MW in Castilla-Leon, 106 MW in Andalusia, 29 MW in Murcia, 9 MW in Castilla-La Mancha, and 3 MW in La Rioja.

Outside Spain, IBERDROLA has total capacity of 2,612 MW, comprising the U.S. (1,767 MW), UK (364 MW), Greece (210 MW), France (61 MW), Germany (60 MW), Poland (51 MW), Portugal (50 MW), and Brazil (49 MW).