Iberdrola

In line with the company’s support of SMEs and to help them swiftly adapt to the Spanish liberalised market

• Customers joining the company’s SME assistance scheme can enjoy an additional 3% discount, bringing the total to 15%
• Thanks to the various commercial and advisory initiatives rolled out by IBERDROLA in recent months, the company has signed over 75,000 contracts with small and medium enterprises in the liberalised market

Tomorrow sees the launch of a new campaign offering Spanish SMEs (small and medium enterprises) extremely competitive and advantageous conditions when contracting low voltage electricity with IBERDROLA.

This initiative, in line with the company’s support of SMEs and aimed at helping them swiftly adapt to the liberalised market, offers customers a 12% discount on electricity supplies in 2009. It is also part of IBERDROLA’s commitment to be a driving force of economic recovery in Spain.

In addition to this offer, customers subscribing to the SMEs assistance scheme can enjoy a further 3% discount, bringing the total discount to 15% on their electricity bills.

SMEs have until 30 June to sign up. Full details and an application form are available on IBERDROLA’s web site (www.iberdrola.com).

This initiative is yet another step in IBERDROLA’s efforts to develop a profitable growth strategy, adapting to trends in a market in the midst of liberalisation to meet and anticipate all its customers’ energy requirements.

Thanks to its commercial strategy in the Spanish liberalised market, the company currently has over 75,000 SMEs with low-voltage contracts on its books. It hopes to raise this figure to 100,000 this year.


Other market-friendly initiatives

IBERDROLA, which is committed to the liberalisation of the Spanish energy sector, ended 2008 with over one million contracts in the Spanish liberalised market. Of these contracts, 50% were for electricity, 20% for gas and the rest for associated services and products, such as installation maintenance or SME assistance.

In 2008, the company signed more than 12,000 new contracts a week through channels such as its corporate website, service points and relationship managers for large customers or telemarketing.

This increased activity was reflected in the greater number of kWh sold by IBERDROLA in the year: over 15,400 million kWh, compared with 7,250 million kWh in 2007.

Meanwhile, given gradual market opening, in recent months the company has signed several agreements with the consumer associations FACUA, UCE and UNAE, to increase society’s awareness of the energy sector and promote a more efficient use of resources.

Following the disappearance of the irrigation rates, the company rolled out various schemes to aid a swift changeover to the liberalised market. Thanks to these initiatives, the company has signed more than 8,000 contracts with these customers, representing more than half of all contracts signed by them in Spain.

IBERDROLA has also given bespoke advice to farms to improve, among other things, electricity use schedules and to promote the implementation of energy-efficiency measures aimed at saving electricity and safeguarding the environment.


IMPORTANT INFORMATION

This information does not constitute an offer to buy, sell or exchange, nor does it constitute the solicitation of an offer to buy, sell or exchange securities. Iberdrola, S.A. shares may not be offered for sale or sold in the United States except through a statement of effective notification in conformity with the provisions of the Securities Act or when a valid exemption from the obligation to provide such notification has been granted.