ELE Endesa SA Ads

Considering the information Endesa (NYSE:ELE) has on the decision adopted by EDF in relation to the open process regarding its stake in Edison, which confirms that EDF has decided to remain in Italy, thus declining the offer made by Endesa in conjunction with ASM Brescia, it's necessary to point out the rigorous strategic rationale that has been a key factor in Endesa's intention to participate in this process. Despite the limited chances of success that could be expected given the complexity surrounding the process, Endesa has always considered entirely justified from a strategic view its intention to participate in the process, considering only those options that would enable the Company to win the control of Edison. Had it succeeded, this process would have implied a step forward on Endesa's strategic purpose of strengthening its presence in Europe. Nevertheless, Endesa confirms it has progressed considerably in this strategic line and that, although it hasn't been possible to gain control of Edison, it already has an outstanding presence in Europe. In France Endesa has 2,600 MW of installed capacity and sales 17,000 GWh. In Italy, the Company has 6,300 MW of installed capacity and sales 26,216 GWh. A position achieved through the acquisition of generation assets with positive results. EBIT of Endesa Europa, which integrates this operations, increased by 52% in 2003-2004, from euro 260 million to 394, while net income tripled from euro 52 million to 145. Endesa believes it's appropriate to keep in mind that it had the necessary financial resources to undertake this operation without substantially modifying its credit ratios. The company will continue strengthening its position in Italy and France through the development of the Investment Plan included in its Strategic Plan. This document may contain certain forward-looking statements regarding anticipated financial and operating results and statistics that are subject to risks and uncertainties as well as to material risks, changes and other factors which may be difficult to predict, including, without limitation, those factors described in the Folleto Informativo Continuado of Endesa filed within the Comision Nacional del Mercado de Valores and in the Form 20-F of Endesa filed within the Securities and Exchange Commission, both for the fiscal year ended December 31, 2003. For all of these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.