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ENDESA (NYSE:ELE) -- Euro 1.09 billion will be used for the distribution business in Spain in 2005. -- ENDESA's system average interruption duration index (SAIDI) fell 19% in 2004 and a further 15% in 1H05. The European Investment Bank (EIB) has granted ENDESA (NYSE:ELE) a Euro 600 million financing facility that will enable the Spanish utility to undertake new investments to upgrade its Spanish electricity distribution network in 2005-2006. The facility will be provided in two Euro 300 million tranches. The first has already been formalised and the second will be completed in the coming months. The purpose of the financing is to reinforce and enlarge ENDESA's sub-transmission and distribution networks on the Spanish mainland and the Balearic and Canary Islands. The bulk of the planned investments - 76% of the total - has been earmarked for Andalusia and Extremadura (the Alborada Plan) and Catalonia (the Tramuntana Plan). This new facility forms part of the Company's capex programme, which is aimed at meeting the expected increase in demand for electricity and improving the quality of the network and security of supply in order to comply with prevailing safety and environmental legislation. The facility, which has been granted for up to 15 years and has an average life of 7.6 years, further underscores the EIB's support of ENDESA and its capex programme and helps increase the Company's cash position, extend the average maturity of its debt and lower its interest costs. ENDESA has earmarked Euro 1.09 billion for the Spanish distribution business in 2005. These planned investments strengthen ENDESA's commitment to improving service quality through ongoing upgrades to its electricity infrastructure. They are part of ENDESA's firm commitment to enhancing and extending its Spanish distribution network, in which it invested Euro 4.055 billion between 1999 and 2004. Thanks to this type of investment, the Company's system average interruption duration index (SAIDI) fell 19% in 2004 and a further 15% in the first six months of this year. Capex planned for this year is part of the 2005-2009 Strategic Plan, which calls for net overall investment of around Euro 14.6 billion over the five year period, of which over Euro 10.3 million (71%) will be spent in the Spanish and Portuguese markets. * 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.