Endesa finalizes the transformation to coal of the Group 3 of Fiume Santo’s power plant in Sardinia, Italy

NEW YORK, Sept. 16, 2003 — ENDESA’s subsidiary Endesa Italia will be finalizing the transformation to coal of the group 3 of Fiume Santo power plant in Sardinia after final tests have been completed.

The project also provides for the transformation of the group 4 of this power plant from orimulsion to coal, which began in August 31st.

The project was launched in October with a total budget of Euro 20.5 million in order to improve the efficiency of the plant and to reduce its environmental impact. This investment is included in ENDESA’s 2002-2006 Strategic Plan.

The project is being managed by a task force made up of Fiume Santo’s staff, personnel from other Endesa Italia’s plants and from its own engineering unit, as well as of port management specialists from ENDESA Generation.

As a coal plant the random unavailability rate will be reduced to 5% from the current 25% and will increase the capacity of both groups in 20 MW, from 640 to 660 MW.

Moreover, the transformation of this groups will allow an approximatelly 20% decrease in the production variable cost and a wider international coal market will permit the implementation of a diversified and competitive procurement strategy.

From the environmental point of view, the particle emission has been reduced to 75% and the SO2 (sulfur dioxide) has been lowered to 50%, whereas the values of Nox (nitrogen oxides) remains at the same level.