IBERDROLA ended 2008 with over one million contracts in the Spanish liberalised market. Of these contracts, 50% were for electricity, 20% for gas and the rest for associated services and products, such as installation maintenance or SME assistance.

In 2008 the company signed more than 12,000 new contracts a week through channels such as its corporate website ( www.iberdrola.com), service points and relationship managers for large clients or telemarketing, a marked increase on previous years.

This increased activity was reflected in the greater number of kWh sold by IBERDROLA in the past year: over 15,400 million kWh, compared with 7,253 million kWh in 2007.

The company, which is unequivocally committed to market liberalisation, is adapting to its customers' needs, offering different products and services that go beyond the mere supply of electricity or gas. It is working to provide à la carte solutions to ensure optimum customer satisfaction at all times.

IBERDROLA aims to continue advancing in its profitable-growth strategy, adapting to new trends in a market in the midst of liberalisation to meet and anticipate its customers' needs.

Given the gradual market opening, in recent months the company has signed several agreements with the consumer associations FACUA, UCE and UNAE, to increase society’s awareness of the energy sector and promote a more efficient use of resources.

More than 8,000 contracts with the water users association 

Moreover, and following the elimination of high-voltage rates, especially the irrigation rate, IBERDROLA has implemented various initiatives to encourage the agricultural sector to adapt to the liberalised market. Thanks to these initiatives, the company has signed more than 8,000 contracts with these customers, which represent more than half of all contracts in Spain.

IBERDROLA has given bespoke advice to farms to improve, among other things, electricity use schedules and to promote the implementation of energy-efficiency measures aimed at saving electricity and safeguarding the environment.

DISCLAIMER

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 of America except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.