The intention is to create an Advisory Board for the Scottish Company in the near future

IGNACIO GALÁN NAMED NEW CHAIRMAN OF SCOTTISHPOWER

José Luis del Valle will be CEO of the company, replacing Philip Bowman

• The appointments, approved by the Board of ScottishPower, were announced today to 60 top executives of the two companies meeting in Valencia for the first time following the completion of the transaction
   
• Del Valle, Director of Strategy and Development at IBERDROLA, said that the appointment “represents an exciting challenge in the context of the creation of one of the largest electricity companies in the world”

The Board of ScottishPower today approved the appointment of Ignacio Galán, Chairman and CEO of IBERDROLA, as the new Chairman of the Scottish company and of the Board Member José Luis del Valle, Director of Strategy and Development of IBERDROLA, as its new CEO.

Galan replaces Charles Miller Smith, who till this week has been non-executive Chairman of ScottishPower. Del Valle, who will combine his new job with his present post at IBERDROLA, substitutes Australian Philip Bowman, who has decided to leave the Glasgow-based company.

The new Board of ScottishPower, which will be technical, professional and of a provisional nature, met yesterday in Valencia for the first time. Its mission will be to guide the integration of the two companies over the coming months.

In parallel, it is envisaged that an Advisory Board will be created in the near future in ScottishPower. It will be made up largely of representatives from the UK business and financial sector and will be chaired by Charles Miller Smith, till now Chairman of the Company.

These appointments were made public today in Valencia, during a meeting of 60 senior executives of IBERDROLA and ScottishPower, the first such meeting since the transaction was completed.

· About Ignacio Galán

Ignacio Galán (1950), is married with four children. He graduated in industrial engineering from the ICAI (Madrid), and holds a Diploma in Business Administration from the  ICADE (Madrid) as well as a diploma in General Company Administration and Foreign Trade from the Escuela de Organización Industrial (Madrid). He speaks English, French and Italian.

He joined IBERDROLA as Executive Vice-Chairman and Managing Director in May 2001. He previously had occupied posts as Managing Director of Airtel Movil (today Vodafone Spain) between 1995-2001, Director of Industria de Turbo Propulsores (1991-1995) and various positions in Grupo Tudor 1972-1991.

Galan is President of Desafío Español 2007, Spain’s entry to the America’s Cup. Over recent years, he has received numerous awards including that of Executive of the year 2006 from Platts, three awards as best CEO in investor relations from IR Magazine and four others for the best top executive in the utilities sector from European Investor Relations Market Report.

· About José Luis del Valle

José Luis del Valle (1954), is married with four children. He graduated in mining engineering from the Universidad Politécnica de Madrid, the top of his class, and is Master of Science and Nuclear Engineer from the Massachusetts Institute of Technology (MIT). He also holds a Master in Business Administration with Great Honor by Harvard University.

Del Valle, who joined IBERDROLA in 2002, is Director of Strategy and Development and member of the Management Commitment, as well as head of Risk, Environment, Quality and Gas Business Development. He has also served as General Manager of Andaluza de Piritas, Senior Vice President of Banco Central, Executive Vice President of Banco Central Hispanoamericano, and at Santander Central Hispano, where he was Executive Vice President, member of the Management Committee and Finance Director.

A keen sportsman, del Valle has a rich international experience, both in his personal and professional capacities. He is fully fluent in English and speaks good French.

His responsibilities include those of piloting the first phase of the integration between IBERDROLA and ScottishPower, which will be completed in the last quarter of 2007 with the presentation of a new Strategic Plan for the Group over the next few years.

He said the appointment “represents an exciting challenge in the context of the creation of one of the largest electricity companies in the world. Without doubt, the integration of the two companies is a magnificent opportunity for all interest groups: employees, customers and suppliers.”

Birth of a new world energy giant

The integration of IBERDROLA and ScottishPower, following completion of the friendly transaction valued at €17.1 billion and announced in November 2006, is a milestone in the 100-year history of the Company. A world energy leader is created, leader in renewable energy and an enterprise value of more than €65 billion.

The combined group has a total installed capacity of around 40,000 megawatts (MW) compared with the 30,500 MW of IBERDROLA alone (a rise of 28%). Of this new capacity, 32,500 MW relates to conventional generation, an increase of 25% over IBERDROLA’s current level.

The new integrated group will consolidate IBERDROLA’s world leadership in renewable energy – including large-scale hydroelectric power – with an installed capacity of 16,500 MW that in the coming years the Company expects to exceed 20,000 MW.

The combination of IBERDROLA and ScottishPower will at the same time reinforce the group’s world leadership in wind power, adding the almost 2,000 MW of ScottishPower capacity, mostly from its PPM subsidiary in the United States to the close to 5,000 MW of IBERDROLA, an increase of 40%.

The new Group has a significantly larger consumer base, with the 5.3 million of ScottishPower adding to the 18.4 million of IBERDROLA to total 21.7 million in Europe and the Americas.

At present, the Company has 2.7 billion cubic metres of gas storage capacity in the UK and the United States, with significant expansion potential.

The geographical footprint of IBERDROLA and ScottishPower is now of significant proportions, creating an Atlantic platform. It has operations in Spain, the UK, the United States, Mexico, Brazil, Greece, Portugal, France, Germany, Italy, Poland, Guatemala, Bolivia and Chile. The group also has a substantial project pipeline that will enable it to continue growing in the future.

This communication does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities. The shares of Iberdrola S.A. may not be offered or sold in the United States except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.