IBERDROLA Inmobiliaria will be an exhibitor at the second annual Murcia Region Real Estate Show to be held 25-28 October at the Villa de Torre Pacheco fairgrounds in Murcia, on Spain’s eastern coast.

IBERDROLA’s property division will use the opportunity to show off its major developments in the Murcia Region and the neighbouring Valencia region to the north. Among them are the following new developments of primary residences:

· Condomina Plaza Residential - Murcia. The company’s first important residential development in the city of Murcia, it consists of 246 units of one to four bedrooms in tower blocks in a growth area near a new soccer stadium, 18-hole golf course, and shopping centre. A gated community equipped with swimming pools, paddle courts, green commons, and a children’s play park, it will be ready for occupancy in the second quarter of 2010.

· Las Terrazas de Gran Vía 2 - Alicante. A development consisting of 134 of one to four bedrooms in 8-level blocks plus penthouses and solarium, with parking spaces and storerooms, green commons, pool and paddle courts. Located on Gran Vía, the main thoroughfare of the new growth area of Alicante.

Upcoming Developments in the Murcia Region:

· Marina de COPE (Águilas – Lorca). A holiday home, hotel, and residential complex on a tract of some two million square metres.

· Molina de Segura – Murcia. A residential development in one of the Murcia region’s fastest-growing population centres.

IBERDROLA Inmobiliaria offers a wide spectrum of properties, including primary residences, holiday homes, offices, industrial premises, and shopping centres. In 2006 it earned a net profit of €110.3 million, up 14.8% for the year, on gross sales of €411.03 million.

At the end of 2006 the company possessed 2.1 million sqm of above-ground building land for housing and tertiary developments, and 417,189 sqm in functioning real estate assets.

SALÓN INMOBILIARIO REGIÓN DE MURCIA 2007

Institución Ferial Villa de Torre Pacheco

Avda. Gerardo Molina, 45

Torre Pacheco, Murcia

25-28 October 2007

IBERDROLA Inmobiliaria Stand

Contacts during the show:

Paula Rodríguez (670 207 195)

José Luis González (647 442 372)

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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.