CLEAN ENERGY AND INTERNATIONAL EXPANSION

IBERDROLA'S GROUP PRESENCE:

EUROPE | NORTH AMERICA | LATIN AMERICA | ASIA | AFRICA

IBERDROLA has undergone a significant transformation process over the last decade (2000-2009) which has strengthened the Company's position as one of the five largest energy companies internationally and a world leader in wind power, present in nearly 40 countries in 4 continents, with 33,000 employees and 28 million customers.

The Company's geographical presence is centred mainly in the Atlantic area: Europe, United States and Latin America, markets where it intends to continue growing in coming years. IBERDROLA is the number one energy company in Spain, and has become one of the main operators in the United Kingdom after the integration of ScottishPower, which was completed in 2007 and it is also taking major steps to strengthen its presence in the United States, following the purchase in 2008 of Energy East (currently IBERDROLA USA).

The IBERDROLA Group has 43,600 MW of installed capacity (at the close of 2009) and has become one of the world's energy leaders. It has an balanced, efficient and well-diversified generation assets, which guarantee its response capacity in any energy situation.

IBERDROLA has consolidated its position as a world leader in wind power and its subsidiary, IBERDROLA RENOVABLES, has over 10,000 MW of installed power.

Moreover, and despite the difficult international economic environment and weak energy demand, output increased in 2009 by 1% to 143,000 GWh, due to the increase in wind power generation (26% over the previous year), which already represents 15% of the Group's total. In addition, it has distributed 205,000 GWh (an increase of nearly 12% compared to 2008) to its more than 28 million customers.

IBERDROLA has laid the groundwork for its future growth and is ready to play a leading role in the new international energy scenario, which involves confronting the challenge of ensuring a safe, competitive and sustainable supply, and in which clean technologies will be a decisive factor in the fight against climate change and reducing dependence on fossil fuels.

In the medium term, IBERDROLA’s main projects will focus on the growth of wind power, primarily in the United States and the United Kingdom; on the construction of hydroelectric plants in Spain, Portugal and Brazil; and on the potential development of carbon capture and storage projects and construction of nuclear plants. The Company will also continue to wager on new technologies and innovation by developing intelligent networks that will make it possible to enhance service quality and boost efficiency, and will participate in the development and implementation of recharging networks for electric vehicles.