Strengthens its global leadership in the sector*, with installed capacity of 9,302 MW

IBERDROLA RENOVABLES TRIPLES NET PROFIT IN 2008 TO €390 MILLION

• The company invested €3.803 billion last year, achieving a more geographically diversified asset base
• It is the seventh largest company in the Ibex 35 by market cap and the world’s largest wind power company
• The Company will pay its first ever dividend, of 2.5 cents euros against 2008 earnings

IBERDROLA RENOVABLES has strengthened its global leadership in the sector* in 2008 after investing €3.803 billion and increasing installed capacity by 2,204 MW, to 9,302 MW. The Company, that went public in December 2007, is the seventh company of the Ibex 35 by market capitalization and the biggest in the world in its industry.

Due to these investments and the international expansion, IBERDROLA RENOVABLES reported a net profit of €390.2 million in 2008, a 3.3-fold increase.

EBITDA doubled from 2007 to €1.185 billion, with almost half generated outside of Spain. EBIT grew 104.5% to €709.6 million, while gross profit was up 97%, at €1.621 billion.

The Company’s wide contribution margins and the large volume of assets in operation (€20.216 billion, the largest in the world) make it a strong cash flow generator (+153% to €873.3 million). In addition, leverage ended 2008 at 22.4%, underscoring the Company’s solid financial position.

As a result of this good earnings performance, the Company will propose to its General Shareholders’ Meeting the payment of a single dividend of 2.5 cents euros per share, equivalent to a pay-out of 27%. In doing so, IBERDROLA RENOVABLES more than fulfils the commitment it took on with investors in the course of its flotation in December 2007, which was to earmark between 20% and 25% of 2008 earnings for dividends.

Greater geographical diversification

IBERDROLA RENOVABLES has amply exceeded the targets it set itself for 2008. The Company has enhanced the geographical diversification of its assets, 52% of which are now located in Spain, 31% in the US, 7% in UK and 10% in the rest of the world, particularly within the European Union. With a presence in 23 countries, the Company raised its output in 2008 by 71.1% to 17,000 GWh, equivalent to savings of 7.5 million tonnes of CO2.

The project pipeline, which is the biggest in the industry, stood at 55,117 MW** at the end of the year. Of this, 41% is in the US, 24.6% in Spain, 9.6% in the UK and 24.7% in the rest of the world.

On the business front, last year featured the inauguration of the El Marquesado (Granada) wind farm complex, the largest in Andalusia, the start –up of one of the largest wind farms on the American continent, Klondike III, and the commissioning of the first buoy at the Santoña wave energy facility.

Positive developments on the regulatory front

Because of the weight of US- and EU-based assets in its project pipeline, IBERDROLA RENOVABLES stands to benefit from both positive regulatory developments and the favourable environment in both areas. In the US, the economic stimulus plan currently going through Congress includes measures such as production tax credits (PTCs) and the conversion of these into investment tax credits (ITCs), as well as large federal fund support for the sector.

In the EU, the proposed European Directive includes ambitious targets for capping emissions and represents a step forward in achieving energy independence for the bloc, as well as stabilizing fuel costs. This will be a key factor in the long-term development of the renewable-energy industry. Spain, which will have to incorporate the directive into its own legislation, is already working on the Renewable Energies Law.

IBERDROLA RENOVABLES will continue to grow in its main markets in 2009, bringing large projects on stream. Among others, the Whitelee wind farm in Scotland (the largest in Europe) will start operations, with an initial 322 MW of installed capacity, as will the solar thermal plant in Puertollano (Ciudad Real) and the biomass plant in Corduentes (Guadalajara). Moreover, the company’s installed capacity will exceed 10,000 MW.

More information, www.iberdrolarenovables.com

LEGAL NOTICE

DISCLAIMER

This document has been prepared by IBERDROLA RENOVABLES, S.A. (the “Company”) in relation with the announcement of the capacity and production results of the complete 2008 fiscal year.

The information and any statements made in this document have not been verified by independent third parties; therefore no express or implied warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions expressed herein.

Neither the Company nor any of its advisors or representatives assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this document or its contents.

Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or construction of any contract or agreement.