• Iberdrola Renovables Quadruples Net Profit In First Half To €194.2 Million
• The Company ended June with 7,949 MW in installed capacity (+68.4%) and consolidated its world wind power leadership*

IBERDROLA RENOVABLES QUADRUPLES NET PROFIT IN FIRST HALF TO €194.2 MILLION

• These results, which improve on the estimates announced at the recent AGM, were boosted by increased capacity, higher prices and greater stability in production
• Ebitda rose 121% in the first six months to €571.2 million, more than in all of 2007

IBERDROLA RENOVABLES has a project pipeline of 54,160 MW and has covered its wind turbine needs up to 2012

• With these results, the Company is on track towards achieving the €400 million profit target for this year, as established in the 2008-12 Strategic Plan

IBERDROLA RENOVABLES recorded a net profit of €194.2 million in the first half of 2008, multiplying that of the  same period last year by four (+325%) and surpassing estimated figures announced at the recent General Sharehlders Meeting. The Company has consolidated its leadership of the world wind energy sector* and taken important steps towards meeting the objectives of the 2008-12 Strategic Plan.

Gross operating profit (Ebitda) rose 121.4% to €571.2 million, while net operating profit (Ebit) rose 130.2% to €357.5 million. Gross margin was up 123% at €779 million and cash-flow rose 179% to €401.4 million.

Contributions to Ebitda of the various geographical areas stabilized in the period, with 59% coming from Spain, 24% from the United States, 7% from the UK and 5% from the rest of the world. Mini hydro accounted for 3% and gas storage in North America for 2%.
The significant improvement in results reflects both an increase in installed capacity and also in production.

IBERDROLA RENOVABLES added 851 MW in new capacity in the first half, 82% of which outside Spain, at an installation rate above the historical average, increasing total capacity by 68% to 7,949 MW. It currently has 1,686 MW under construction and work on another 526 MW will begin in the third quarter, thus meeting the goal of installing 2,000 MW this year.

The Company has 4,383 MW of wind power capacity in Spain and 3,224 MW abroad, including 1,983 MW in the U.S. and 531 MW in the UK. The remaining 710 MW is mainly in Europe, with 217 MW in Greece, 166 MW in France, 128 MW in Poland, 63 MW in Germany and 56 MW in Portugal.

More stable and predictable production

The Company produced 8,558 million kilowatt hours (kWh) in the first half, a rise of 83.5% over the previous period, with 45% of the total generated outside Spain. Load factors were much higher than the year before, rising 8.8% to more than 2,400 hours/year.

Geographical diversification has afforded IBERDROLA RENOVABLES greater stability in production, compensating for variations in wind resources in the different operating areas and providing greater security of supply while also  increasing scope for wind prediction.

The Company increased its project pipeline by 29% to 54,160 MW, from the 42,000 MW with which it ended 2007. This volumen ensures growth targets will be met for at least seven years, while enhancing geographical diversification. It has in the process covered its turbine supply requirements to 2012 (10,000 MW) as a result of agreements signed with leading manufacturers.

Highlights of the period included the signing with Gamesa of the sector’s largest ever turbine supply contract for a total capacity of 4,500 MW between 2010-2012 and a parallel agreement to create two jointly owned companies to develop wind farms. Elsewhere, the Company launched a bid to buy the shares it does not already down in Greek wind power company Rokas, inaugurated the El Marquesado (Granada) wind farm, the largest in Andalusia and the second largest in Europe, and started up the Company’s largest wind farm worldwide, the Klondike III complex in the United States.

Progress towards Strategic Plan objectives

These results have cemented the foundations for meeting the objectives of the 2008-2012 Strategic Plan, which envisages investments of €18.8 billion in the period and a net profit of around €400 million and Ebitda of approximately €1.3 billion for 2008.

Objectives for 2012 are to raise installed capacity to 18,000 MW and achieve an Ebitda of around €3.4 billion, with net profit of approximately €1 billion and a financial gearing below 50%.

* Source: New Energy Finance (December 2007)

DISCLAIMER

This document has been prepared by Iberdrola Renovables, S.A. (the “Company”), in relation to the presentation of results corresponding to the first six months of 2008.

The information and any opinions and affirmations contained in this document have not been verified by independent third parties and, as such, no guarantee as to impartiality, exactness, completeness or correction can be given, either implicitly or explicitly, with relation to the information or opinions and affirmations expressed therein.

Neither Iberdrola Renovables, S.A., nor its subsidiaries or other companies of the Iberdrola Group, or companies in which Iberdrola Renovables, S.A. has a shareholding assume any kind of responsibility, independent of any negligence that may arise or any other circumstance, with regard to damages or losses that could be derived from any use of this document or its contents.

Neither this document, nor any part of it constitutes a document of a contractual nature, nor can it be used to form part of or interpret any contract or any other form of commitment.

IMPORTANT INFORMATION
 
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This announcement is not an offer for sale, purchase or exchange or an request for sale, purchase or exchange of securities.  Shares in Iberdrola Renovables, S.A. may not be sold in the United States absent registration or an exemption from registration.

FORWARD-LOOKING STATEMENTS
 
This communication contains forward-looking information and statements about Iberdrola Renovables, S.A. These include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates” and similar expressions.
 
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Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Iberdrola Renovables, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to Iberdrol Renovables, S.A. or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available on the date hereof. Except as required by applicable law, Iberdrola Renovables, S.A. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.