IBERDROLA RENOVABLES has strengthened its global leadership in the sector(1) in 2008 after investing €3.803 billion and increasing installed capacity by 2,204 MW, to 9,302 MW. The Company, that went public in December 2007, is the seventh company of the Ibex 35 by market capitalization and the biggest in the world in its industry.

Due to these investments and the international expansion, IBERDROLA RENOVABLES reported a net profit of €390.2 million in 2008, a 3.3-fold increase.

EBITDA doubled from 2007 to €1.185 billion, with almost half generated outside of Spain. EBIT grew 104.5% to €709.6 million, while gross profit was up 97%, at €1.621 billion.

The Company’s wide contribution margins and the large volume of assets in operation (€20.216 billion, the largest in the world) make it a strong cash flow generator (+153% to €873.3 million). In addition, leverage ended 2008 at 22.4%, underscoring the Company’s solid financial position.

As a result of this good earnings performance, the Company will propose to its General Shareholders’ Meeting the payment of a single dividend of 2.5 cents euros per share, equivalent to a pay-out of 27%. In doing so, IBERDROLA RENOVABLES more than fulfils the commitment it took on with investors in the course of its flotation in December 2007, which was to earmark between 20% and 25% of 2008 earnings for dividends.

Greater geographical diversification

IBERDROLA RENOVABLES has amply exceeded the targets it set itself for 2008. The Company has enhanced the geographical diversification of its assets, 52% of which are now located in Spain, 31% in the US, 7% in UK and 10% in the rest of the world, particularly within the European Union. With a presence in 23 countries, the Company raised its output in 2008 by 71.1% to 17,000 GWh, equivalent to savings of 7.5 million tonnes of CO2.

The project pipeline, which is the biggest in the industry, stood at 55,117 MW(2) at the end of the year. Of this, 41% is in the US, 24.6% in Spain, 9.6% in the UK and 24.7% in the rest of the world.

On the business front, last year featured the inauguration of the El Marquesado (Granada) wind farm complex, the largest in Andalusia, the start –up of one of the largest wind farms on the American continent, Klondike III, and the commissioning of the first buoy at the Santoña wave energy facility.

Positive developments on the regulatory front

Because of the weight of US- and EU-based assets in its project pipeline, IBERDROLA RENOVABLES stands to benefit from both positive regulatory developments and the favourable environment in both areas. In the US, the economic stimulus plan currently going through Congress includes measures such as production tax credits (PTCs) and the conversion of these into investment tax credits (ITCs), as well as large federal fund support for the sector.

In the EU, the proposed European Directive includes ambitious targets for capping emissions and represents a step forward in achieving energy independence for the bloc, as well as stabilizing fuel costs. This will be a key factor in the long-term development of the renewable-energy industry. Spain, which will have to incorporate the directive into its own legislation, is already working on the Renewable Energies Law.

IBERDROLA RENOVABLES will continue to grow in its main markets in 2009, bringing large projects on stream. Among others, the Whitelee wind farm in Scotland (the largest in Europe) will start operations, with an initial 322 MW of installed capacity, as will the solar thermal plant in Puertollano (Ciudad Real) and the biomass plant in Corduentes (Guadalajara). Moreover, the company’s installed capacity will exceed 10,000 MW.

More information, www.iberdrolarenovables.com

More information, FY 2008 Results - Analysts Presentation

LEGAL NOTICE

DISCLAIMER

This document has been prepared by IBERDROLA RENOVABLES, S.A. (the “Company”) in relation with the announcement of the capacity and production results of the complete 2008 fiscal year.

The information and any statements made in this document have not been verified by independent third parties; therefore no express or implied warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions expressed herein.

Neither the Company nor any of its advisors or representatives assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this document or its contents.

Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or construction of any contract or agreement.

IMPORTANT INFORMATION

This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Law (Law 24/1988, as amended and restated from time to time), Royal Decree Law 5/2005 and/or Royal Decree 1310/2005 and its implementing regulations.

This report does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act.

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking information and statements about IBERDROLA RENOVABLES, S.A. and otherwise, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates” and similar expressions. Prior results cannot be used as indicators of future performance.

Although IBERDROLA RENOVABLES, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of IBERDROLA RENOVABLES, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of IBERDROLA RENOVABLES, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, among others, those discussed or identified in the public documents sent by IBERDROLA RENOVABLES, S.A. to the Comisión Nacional del Mercado de Valores.

Forward-looking statements are not guarantees of future performance and they have not been reviewed by the auditors of IBERDROLA RENOVABLES, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to IBERDROLA RENOVABLES, S.A. or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available to IBERDROLA RENOVABLES, S.A. on the date hereof. Except as required by applicable law, IBERDROLA RENOVABLES, S.A. does not undertake any obligation to publicly update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise.