In 2009 IBERDROLA cemented its position as leader in power exports from Spain to France, transporting more than 569,000 MWh across the Pyrenees, equivalent to the annual average consumption of around 200,000 households.

IBERDROLA’s power exports, made mainly in January, February, November and December coinciding with periods of high wind and hydro output, rose by 6.5% compared to 2008, when the company was also the leading exporter of power to France.

The Spain-France interconnection has import capacity of 1,300MW and export capacity of 500MW and by 2014 import volumes are expected to double while export volumes are expected to grow fivefold following construction of the new Baixas-Santa Llogaia line.

IBERDROLA expects to use this increase in interconnection capacity with France to raise export volumes, leveraging on the most balanced and flexible generation assets in the Spanish electricity sector.

Interconnections are essential for the growth of IBERDROLA's European business and it is worth noting that the company has been awarded annual trans-border capacity of 3,270,000 MWh for 2010 for a total of nine interconnections. This is an increase of 88% on 2009.

Additionally, IBERDROLA’s trading unit exchanged more than 103 million MWh of power last year, of which 66% was sold outside Spain via transactions carried out in the wholesale markets of nine European countries: France, Germany, Italy, Holland, Belgium, Austria, Portugal, Greece and Poland.

The company has also recently obtained a trading license to operate in the Czech Republic electricity market and expects to obtain the necessary permits to trade power in Romania this year.

IBERDROLA’s trading team operates daily in seven of the European organised markets -OMEL (Spain and Portugal), EPEXSpot (Germany and France), BELPEX, IPEX, APX, GME and HTSO – and on all brokerage platforms; taking part in structured product auctions in many countries –primary energy, grid losses, hedging options for grid losses-; optimising the group’s emissions portfolio and taking out fuel/electricity cross hedges.

IMPORTANT INFORMATION

This communication does not constitute an offer of purchase, sale or exchange or a request for an offer of purchase, sale or exchange of values. The shares of Iberdrola S.A. cannot be offered or sold in the United States, except if this is carried out through a declaration of effective notification of what is laid out in the Securities Act or under the protection of a valid exemption of the need for notification.