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ENDESA (NYSE: ELE): -- This piece of infrastructure represents the first step in the construction of a gas pipeline network which will enable natural gas delivery directly to the Bay of Cadiz. The next steps include the stretches joining Puerto de Santa Maria - Puerto Real - San Fernando and Puerto de Santa Maria - Rota - Chipiona -- The 16.6km long pipeline enables ENDESA Gas to extend supply to new towns in the Bay of Cadiz. ENDESA Gas already has over 4,000 customers and over 5,000 new supply requests in the area which will be attended to in the near future. -- The pipeline will expand the Andalusian community's natural gas pipe and transmission infrastructure to meet the expected increase in demand and reinforce the mainland transmission system. ENDESA Gas, wholly owned by ENDESA (NYSE: ELE), has launched its new gas pipeline in the Spanish province of Cadiz joining Jerez de la Frontera with El Puerto de Santa Maria, entailing investment of Euro 3.25 million. This piece of infrastructure represents the first step in the construction of a gas pipeline network which will enable natural gas delivery directly to the Bay of Cadiz. The next steps include the stretches joining Puerto de Santa Maria - Puerto Real - San Fernando and Puerto de Santa Maria - Rota - Chipiona. This first pipeline entailed investment of Euro 3.25 million and it will operate at a pressure of 45 bar. However, the construction plans already contemplated that when warranted by demand and the pertinent permits are granted, the pressure can be increased to 80 bar, at which point the pipeline will become part of the primary transmission system's basic infrastructure. The pipeline will allow ENDESA Gas's subsidiary, ENDESA Gas Meridional, distribution operator in Andalusia, to expand its market to supply new towns in the Bay of Cadiz. ENDESA Gas Meridional already has over 4,000 customers and over 5,000 new supply requests in the area which will be attended to in the near future. The pipeline, which falls under the auspices of the specific collaboration agreement signed on 6 November 2003 between the Andalusian regional government and ENDESA Gas Transportista to pipe natural gas to cities where it is currently not available, in accordance with the general guidelines of the Andalusia Energy Plan for 2001-2006. The next steps, already planned for the province of Cadiz, will stem from this pipeline. The construction of these new gas pipelines will begin as soon as the pertinent authorisations have been obtained from the Andalusian regional government: -- The Puerto Real - San Fernando pipeline will be 24.5km long, require investment of Euro 7.3 million and supply the cities of Puerto Real, San Fernando and Chiclana de la Frontera. -- El Puerto de Santa Maria - Rota - Chipiona pipeline will be 32km long, entail investment of Euro 8.4 million and supply the cities of Rota, Chipiona and Sanlucar de Barrameda. The construction of these gas pipelines forms part of ENDESA's transmission infrastructure plan to supply natural gas to the Bay of Cadiz, allowing the group to increase its natural gas pipeline and transmission infrastructure in Andalusia to meet anticipated increases in demand and to reinforce the mainland transmission system. * 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.