IBERDROLA has acquired from Motor Oil (Hellas) a 70% stake of Korinthos Power, a Greek firm with a license that will allow the Company to participate in the bidding process to develop new CCGT generation capacity in Greece.

Motor Oil will remain with a 30% stake. Along whith IBERDROLA, trough this partnership both companies intend to participate jointly in the process launched by the Greek Government.

The agreement reinforces the Company’s commitment and presence in Greece, where it holds a 49% stake in the largest wind operator in the country.

Korinthos Power will benefit from IBERDROLA’s knowledge and experience in developing and managing CCGT technology.

IBERDROLA is a year ahead of its 2002-2006 Strategic Plan target of having 4,000 MW of installed power (4,800 MW managed) using this technology in our country. Over the last financial year, Iberdrola has commissioned combined cycle plants amounting to 1,200 MW in Spain: Aceca, in Toledo, of 400 MW, and Arcos de la Frontera B, in Cadiz, of 800 MW. The company is already building another two 800 MW combined cycle plants, one in Escombreras (Murcia) which recently started its trial phase, and Castellón 4, that will start operating in 2006 and 2007, respectively.

The company also has several combined cycle plants in operation in Mexico, Monterrey III and Altamira III & IV, with an installed capacity of 1,000 MW each, and La Laguna II, with 500 MW, and one in Brazil, Termopernambuco, with over 500 MW.

The construction of new combined cycle plants falls within the framework of Iberdrola’s bid for cleaner energy in defence of the environment, sustainable development and compliance with the Kyoto Protocol.