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ENDESA (NYSE:ELE) -- The start-up of the plant increases the installed generation capacity on the island of Mallorca by 18.5%. -- Combined-cycle technology will make the introduction of natural gas viable in the Balearic Islands, given that the use of this new fuel in the islands includes its use in electricity generation. The president of the regional government of the Balearic Islands, Jaume Matas, and the Chairman of ENDESA (NYSE:ELE), Manuel Pizarro Moreno, inaugurated the Son Reus II CCGT plant in Mallorca yesterday. This is the second plant of this kind to be constructed in the Balearic Islands. The inauguration was attended by the CEO of ENDESA, Rafael Miranda, the representative of the government in the Balearic Islands, Ramon Socias, the mayor of Palma, Catalina Cirer, the trade, industry and energy minister of the regional government of the Balearic Islands, Josep Juan Cardona, the Honorary Chairman of ENDESA, Feliciano Fuster, the Chairman of Gas y Electricidad Generacion, Bartomeu Reus, and the General Manager of ENDESA in the Balearic Islands, Jaime Reguart. The combined-cycle plant, in which a total of Euro 200 million has been invested, has two 75 MW gas turbines and a 75 MW steam turbine. It is located in the Son Reus thermal plant in Palma de Mallorca. The start-up of the plant adds 225 MW of capacity to the Mallorca-Menorca system's generation assets. This will now have a capacity of 1,344 MW, while the predicted peak demand this summer is estimated at 1,049 MW, providing a reserve margin of 295 MW, equivalent to 28% more capacity for the Mallorca-Menorca system. The CCGT plant, along with the plant already in operation in Mallorca, will make the entry of natural gas in the islands possible in the future. This fuel will diversify energy production in the islands. Both CCGT plants will use gas oil and will be converted to use natural gas when this type of fuel becomes available on the islands. ENDESA's electricity generation plants in the Balearic Islands had a total installed capacity of 1,561MW at the end of 2004, with a gross output of more than 5,600 GWh. ENDESA's large investment in the construction of this CCGT plant, together with its planned investment in distribution, is in response to the sustained increase in demand in recent years in the Balearic Islands (27.5% in the last five years) and will enable it to deal more confidently with similar projected increases in the future - estimated at between 4% and 6% per year. Features of the CCGT plant The CCGT plant has two gas turbines and a steam turbine that are interconnected. Each turbine has a capacity of 75 MW, achieving a total capacity of approximately 225 MW and an output of 47.63% if it operates as a combined-cycle plant using gas oil. The CCGT plant can also operate on open cycle (exclusively using gas turbines), generating between 35 and 150 MW. These new production units use a closed circuit water cooling system and comply with all European and Spanish environmental requirements. ENDESA's investments in the Balearic Islands ENDESA plans to invest a total of Euro 317 million in the Balearic Islands in 2005, with the aim of expanding the electricity infrastructure necessary to meet projected demand in the next few years. Demand is expected to increase by more than 5%. The investments in the Balearic Islands form part of ENDESA's Investment Plan for its island systems. Of the total planned investment, Euro 205 million will go to expand generation capacity and Euro 112 million to enlarge and upgrade the transmission and distribution networks. * 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.