IBERDROLA has sold 2.706% of EDP – Energías de Portugal for  €298 million, at an average price of €3 per share, obtaining gross capital gains of around €68 million. The Company retains 6.794% of the Portuguese company’s capital.

The transaction is in the context of the asset divestment plan included in IBERDROLA’s 2008-2010 Strategic Plan, whose objective is to maximize the Group’s financial strength, optimize its capital structure and guarantee the level of investments communicated to the markets.

The EDP operation follows the recent sale of its stake in Petroceltic, gas storage assets at Seneca Lake in the United States and divestments announced in 2009 including stakes in the Sagunto and BBG regasification plants, in two hydro plants in Chile, a 10% stake in Gamesa and 27% of Guatemalan telecommunications company Navega.

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.