IBERDROLA Ingeniería y Construcción is to build the substations and transformer stations for the electrification of the Vigo-A Coruña section of the Atlantic high-speed rail line. The project entails an investment of €42.7 million and will take 30 months to complete.

IBERDROLA Ingeniería will carry out this contract, awarded by the Development Ministry, via a joint venture with Comsa Emte and Isolux Corsán. The contract encompasses the construction of two 2 x 25kV traction substations which will be situated in Tomeza, Osebe and Meirama. The company will also build seven intermediate transformer stations and two final transformer stations and will provide associated remote control energy facilities.

This is the second high-speed rail contract secured by IBERDROLA’s subsidiary, which completed electrification of the Madrid-Valladolid line at the end of 2009. This contract included the construction of three 400 kV traction substations.

IBERDROLA Ingeniería y Construcción is the leading Spanish engineering company in the electricity sector and the second-largest worldwide on turnover from foreign business. It is currently involved in projects in 30 countries in Europe, the Americas, Africa and the Middle East and has over 2,400 employees. It mainly operates in the nuclear, renewables, electricity networks and infrastructure and generation sectors.

The company, which has become the technological centre of the IBERDROLA Group, had a project pipeline worth over €2.5 billion at the end of 2009. It is the leader in wind farm construction in Spain, Mexico and Poland and a major player in the renovation of electricity generation facilities in Eastern Europe, where it has just completed a combined cycle plant in Latvia and started work on another in Lithuania. It is also one of the most important companies in the nuclear sector, having become the leading foreign player in the modernisation of Russia’s nuclear plants.

In networks, IBERDROLA Ingeniería y Construcción completed a 120.7-kilometre power line last November between Puebla de Guzmán (Huelva) and Guillena (Sevilla), one of the key projects of this kind in recent years and the largest carried out by the Company in Spain.

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.