Rafael Miranda Explores Medium-Term Gas Supply Diversificaiton Opportunities in Russia For ENDESA's European Markets

-- On Monday, ENDESA's CEO met with Alexander Medvedev, Vice Chairman of Gazprom's Executive Committee, and Anatoly Chubais, who is both Chairman of CIS-EPC (Commonwealth of Independent States - Electric Power Council) and Chairman of RAO-UES (Russia's leading electricity company).

-- ENDESA estimates that its gas supply needs will reach 15 bcm/year in the next five years.

-- The search for new gas sources is included in ENDESA's ambitious New Capacity Plan which aims to bring 11 new CCGTs on line in Europe by 2009.

ENDESA's (NYSE:ELE) CEO, Rafael Miranda, travelled to Moscow wherehe held various meetings with senior representatives of the Russianenergy sector.

On the morning of Monday 18 September, Mr. Miranda met withAlexander Medvedev, Vice Chairman of Gazprom's Executive Committee inorder to explore joint opportunities for both companies in the gas andelectricity businesses where both companies operate. In particular,ENDESA is seeking to diversify its medium-term gas supply requirementsin its European markets (Spain, Portugal, Italy and France), whichstand to reach 15 bcm/year over the next five years.

Rafael Miranda, in his capacity as Chairman of Eurelectric, alsomet with Anatoly Chubais who is both Chairman of CIS-EPC (Commonwealthof Independent States - Electric Power Council) and Chairman ofRAO-UES (Russia's leading electricity company) to discuss mattersconcerning the integration of electricity systems, deregulation in theEuropean markets and the deregulation and privatisation of the Russianelectricity sector.

The search for new gas sources forms part of ENDESA's ambitiousNew Capacity Plan under which 11 new CCGTs will be brought on line inEurope by 2009 (eight in Spain and three in the rest of Europe), whichwould more than double total CCGT installed capacity.

This investment in CCGTs will strengthen ENDESA's position in thegas sector and see the Company's consumption in Europe rise from thecurrent figure of 10 bcm/year to 15 bcm/year in 2009: 9 bcm atENDESA's plants in Spain and Portugal and the remaining 6 bcm at theother European plants.

* This document may contain certain forward-looking statementsregarding anticipated financial and operating results and statisticsthat are subject to risks and uncertainties as well as to materialrisks, changes and other factors which may be difficult to predict,including, without limitation, those factors described in theDocumento de Registro de Acciones of Endesa filed within the ComisionNacional del Mercado de Valores and in the Form 20-F of Endesa filedwithin the Securities and Exchange Commission, both for the fiscalyear ended December 31, 2005. For all of these forward-lookingstatements, we claim the protection of the safe harbour forforward-looking statements contained in the Private SecuritiesLitigation Reform Act of 1995.