The Chairman of IBERDROLA, Ignacio Galán, met this morning in Bilbao with over 200 members of the Group’s management team at the traditional conference that is held every year prior to the General Shareholders’ Meeting, which will take place tomorrow at Palacio Euskalduna.

During the meeting, which was attended for the first time by the management team of Brazilian company Elektro, acquired by IBERDROLA at the beginning of the year, Ignacio Galán thanked the Company’s professionals for their efforts last year, which have enabled the Group to obtain the highest net profit of its history -€2,871 million– and record electric power production -154 million kilowatt hours (kWh).

The IBERDROLA Chairman also referred to improved efficiency, the financial strength and the liquidity (€10.6 billion), thanks to an industrial project focused on core businesses -electricity production, distribution and energy retail- and a commitment to international expansion: more than half of Group Ebitda already comes from outside Spain.

Ignacio Galán also spoke to his management team of investments planned by the Company for the 2010-2012 period, amounting to €16 billion, and the Company’s intention to continue carrying out pioneering energy projects, including those related to offshore wind.

In this regard, he singled out the start of construction of the West of Duddon offshore wind farm on the Irish Sea, with an installed capacity of 390 megawatts (MW).

The Chairman of the IBERDROLA Group also referred to the merger process with IBERDROLA RENOVABLES, which will place appropriate value on this company’s assets and facilitate access to capital markets in order to obtain funding and thus consolidate its global leadership.

The meeting was also attended by the Spanish national football team coach, Vicente del Bosque, who presented Ignacio Galán with the World Cup won last summer in South Africa. The executives were photographed with this trophy at the end of the meeting.

Union support for IBERDROLA

Before the meeting with executives, the IBERDROLA chairman and human resources management met with unions represented at the company – UGT, SIE, ATYPE, CCOO, ELA and CGT – with whom he reviewed the success of the Group’s business model and results obtained by the Company.

The union representatives congratulated Galán both for the strong results in 2010 and also for the work of the management team, while viewing 2011 prospects as excellent.

Also discussed during the meeting was the scope of the V Collective Contract of IBERDROLA, signed recently by the majority of unions and a pioneering agreement among Spanish companies, described as “advanced, novel, serious and brave” by the union representatives that signed it.

Ignacio Galán expressed his conviction that with the strong prospects enjoyed by the Group, and with the application of this new collective contract, IBERDROLA professionals will be able to increase their purchasing power over the next four years.

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.