The IBERDROLA group produced 86.8 billion kilowatt hours (kWh) of electricity in the first three quarter of 2007, according to provisional data. This represents a 30.3% increase from the same period of 2006, and is chiefly due to the acquisition of ScottishPower –whose output has been included in the total only since 23 April. At the same time, the proportion of “clean”, emission-free power rose to nearly 45%, in keeping with the company’s current strategy.

Combined cycle plants turned out 35.25 billion in the first nine months, an increase of 29.5% and representing 40.6% of total group output, while renewable energy plants produced 9.40 billion kWh (+67.7%), accounting for 10.8% del total.

Electricity from IBERDROLA’s nuclear plants amounted to 15.83 billion kWh (18.2% of total production), and hydroelectric plants generated 12.3 billion kWh (+63.7%), for 14.2% of the total. Conventional plants produced 11.25 billion kWh (13%), and co-generation plants generated 2.58 billion kWh (3%). Fuel oil was the source of only 0.2% of the group’s electricity output in the period (176 million kWh).

The group’s electricity production in Spain came to 48.62 billion kWh (-2.5%), of which hydro plants accounted for 11 billion kWh (+66.4%) and renewables for 6.6 billion kWh (+17.4%). Production in the same period by the company’s Latin American power plants came to o 23.3 billon kWh (+39.2%); 11.795 billion kWh in the United Kingdom*, and 3.09 billion kWh in the United States * (of which 81.2% was from renewable sources).

Group-wide atmospheric emissions came to 280 grams of CO2 per kWh, and just 179 grams of CO2 per kWh in Spain, representing a decline of nearly 15% in the period. Meanwhile, 43% of the company’s entire electricity output occasioned no emissions at all. In Spain, 69% of IBERDROLA’s production is emissions-free, thanks to the widespread use of clean technologies.

IBERDROLA Reaches a Generation Capacity of 40,800 MW

Following the April completion of the takeover of ScottishPower, IBERDROLA has diversified and expanded its generation assets throughout the world, ending the third quarter with an operational capacity 40,749 MW, 45.2% more than the level at the end of September, 2006. Combined cycle units accounted for 29.9% of the total, followed by hydro with 23.8%, renewables and cogeneration with 19.5%, coal with 11.6%, nuclear with 8.2%, and fuel oil with 7.1%.

In Spain, capacity climbed by 7% from 24,768 MW in September of 2006 to 26,509 MW a year later. At the same date the company’s output capacity in the United Kingdom stood at 6,408 MW, in Latin America at 5,553 MW, and in the United States at 2,279 MW.

IBERDROLA’s strategic objective is to increase electricity production via clean technologies, chiefly combined cycle plants and renewables, showing its firm commitment to the Kyoto agreement to combat climate change. This commitment is reflected in the company’s project pipeline.

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* Included only from 23 April to 30 September, 2007

IMPORTANT INFORMATION

This communication does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities. The shares of Iberdrola S.A. may not be offered or sold in the United States except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.