ELE Endesa SA Ads

In the wake of the Spanish cabinet's decision today to approve the takeover of ENDESA (NYSE:ELE) by Gas Natural, and independent of the Company's in-depth analysis of the ruling once it has been officially communicated, our initial legal evaluation has concluded that ENDESA should appeal this decision at the Supreme Court. ENDESA believes that the conditions imposed, together with the poor quality of Gas Natural's project, mean that the business combination lacks strategic, economic and manufacturing rationale, while by the same token jeopardising the initiative due to the serious regulatory risk it entails. * 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 Documento de Registro de Acciones 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, 2004. For all of these forward-looking statements, we claim the protection of the safe harbour for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.