Last year IBERDROLA Inmobiliaria handed over 870 residential units at 15 developments all over Spain.

By regions, the company sold 231 units in Andalusia, 180 in Castile-Leon, 136 in Catalonia, 91 in La Rioja, 90 in Madrid, 73 in Castile-La Mancha, 47 in Valencia, 21 in the Balearic Islands, and one in Asturias.

These IBERDROLA developments are noted for their quality and ongoing adjustment to market requirements. In this regard, the company now applies environmental sustainability criteria in its projects, in keeping with the overall strategy of the IBERDROLA parent group.

The most noteworthy of the developments completed last year were the following:

Near the expansion zone of the city of Logroño, and adjacent to the Las Gaunas stadium, this high-quality development consists of four exclusive palazzini that comprise a private community of 1-, 2-, 3-, and 4-bedroom units, with gardens and a swimming pool.

This development of 136 units was entirely completed in 2007, and is the company’s second residential project in this municipality. It is located at El Vendrell Playa, a few kilometres from Tarragona.

This 217-unit development in Mijas Costa is very near the sea and golf courses. Already sold, it is being followed by the new Residencial Alamar development, with 212 units.

It is located in the select La Castellana district, and contains a variety of residential options, with green zones and recreational facilities.

Uninterrupted Growth in Recent Years

IBERDROLA Inmobiliaria posted net earnings of €118.3 million in 2007, a 7.3% increase over 2006, which confirmed the rising trend of recent years.

Total turnover reached €482.4 million, and earnings before tax came to €158.5 million. At the close of 2007, the company’s assets were valued at more than €2,601.6 million.

With an equity of €812.9 million and financial yield of 21%, the company has consolidated its position in the top rank of Spanish real estate operators. Last year it invested more than €385.2 million in building land.

IMPORTANT INFORMATION

This information does not constitute an offer to buy, sell or exchange, nor does it constitute the solicitation of an offer to buy, sell or exchange securities. Iberdrola, S.A. shares may not be offered for sale or sold in the United States except through a statement of effective notification in conformity with the provisions of the Securities Act or when a valid exemption from the obligation to provide such notification has been granted.