IBERDROLA RENOVABLES has purchased a wind farm in Teruel province, in the Aragon region, with a final capacity of 44.2 MW. The La Torrecilla farm was acquired from Gamesa, in the framework of an agreement with this company in 2005 to acquire 700 MW of wind capacity now under development, in Spain and Italy between 2006-2009.

The 16.15 MW first phase at La Torrecilla is on stream, while the second of 28.05 MW is under development. IBERDROLA RENOVABLES is the industry leader in Aragon with installed capacity of 262 MW, comprising a 1 MW mini-hydro plant and seven wind farms: Tardienta I (49.5 MW), Tardienta II (44.2 MW), La Plana II (16.5 MW), La Plana III (21 MW), Fuendetodos I (46 MW), Fuendetodos II (47.6 MW), and Entredicho (36 MW).

IBERDROLA RENOVABLES also has a large portfolio of projects in Aragon, a region to which it is strongly committed with a view to meeting the ambitious growth objectives set in its 2008-2010 strategic plan.

The company was recently awarded a contract to build the 6 MW El Espartal wind farm which will supply electricity to the Expo 2008 fair to be held in the city of Zaragoza. The wind farm, with three 2 MW turbines, is being developed by IBERDROLA Energías Renovables de Aragón, and will take seven months to build.

IBERDROLA RENOVABLES is in the approval phase for a project to build Aragon’s largest solar thermal power station, a 50 MW plant occupying approximately 245 hectares in the localities of Azaila and La Puebla de Híjar, in Teruel province. Investment is expected to reach €200 million.

IBERDROLA RENOVABLES, which last year consolidated its leadership of the world wind power industry with capacity of 7,704 MW** (+19.5% in adjusted terms) a 74% increase from the 4,434 MW at the end of 2006. Of this capacity, 7,362 MW corresponds to wind farms and 342 MW to mini-hydro plants. It now has 4,570 MW of capacity in Spain, with wind power accounting for 4,228 MW.

Capacity in Spain, which is spread among 13 regions, and to which 577 MW were added in 2007, is distributed as follows: 1,881 MW in Castile-La Mancha; 918 MW in Castile-Leon; 593 MW in Galicia; 391 MW in Andalusia; the 262 MW already mentioned in Aragon; 248 MW in La Rioja; 82 MW in the Basque Country; 76 MW in Murcia; 56 MW in Valencia; 44 MW in Navarre; 14 MW in Cantabria; 5 MW in Extremadura; and 1 MW in Madrid.

The group achieved installed capacity worldwide of IBERDROLA RENOVABLES ended 2007 with a project pipeline adding up to another 42,000 MW, which is 2.3 times more than the 18,431 MW in projects at the end of the previous year, and represents an excellent platform for future growth. The company’s strategic plan calls for investments of €8.6 billon between 2008 and 2010 to install 2,000 MW each year, reaching 13,600 MW at the end of the period.



* Source: New Energy Finance (May, 2007)

** Including 606 MW belonging to a third party under an energy sales contract



IMPORTANT INFORMATION

This communication does not constitute an offer to purchase, sell, or exchange or the solicitation of an offer to purchase, sell, or exchange any securities. The shares of Iberdrola Renovables S.A. may not be offered or sold in the United States of America except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.