ENDESA And SONAE Formally Set Up a Joint Company for the Supply of Electricity in Portugal

     
BW20021021002534  20021021T154817Z UTC


( BW)(ENDESA)(ELE) ENDESA And SONAE Formally Set Up a Joint
Company for the Supply of Electricity in Portugal

    Business Editors
    UK REGULATORY NEWS

    NEW YORK--(BUSINESS WIRE)--Oct. 21, 2002--
    
-   The Company's Name is SODESA Comercializacion de Energia, S.A.
    And It is 50%-50% Jointly Owned by Both Companies

-   SODESA Currently has Supply Contracts With 200 Delivery Points
    for a Total 800 GWh, and is Negotiating a Further 1,700 GWh.

-   Besides, ENDESA And SONAE Are Positioning Themselves
    Strategically VIS-A-VIS The Imminent Iberian Electricity
    Market Agreed by the Spanish and Portuguese Governments.

ENDESA (ELE:NYSE) and the Portuguese SONAE have formalized the
setting up of SODESA Comercializacion de Energia, S.A., a joint
company owned 50-50% by both companies, that supplies electricity and
services to Portuguese eligible customers, which last January received
the green light from the European Commission.
     
The shareholders' agreement contemplates five directors at the
Board, of whom, for the next three years, Messrs. Javier Uriarte
Monereo, Miguel Lopez Coders and Francisco Cruces Socasau, from ENDESA
and Messrs. Jose Silva Peneda and Edgar Pinto Ribeiro from SONAE have
been appointed. Also, the majority at the Board will be rotated every
three years, the Chairman being then partner with a minority
representation at the Board. Therefore, during the first three years
the Chairman will be Mr. Jose Silva Peneda. The Board of Directors, in
its first meeting, has appointed Mr. Francisco Xavier Rueda, from
ENDESA, as general manager.
     
ENDESA provides technological support in systems and products,
while SONAE provides its knowledge of the Portuguese market. These
contributions have allowed the new company to start its commercial
operations immediately.
     
SODESA's target in Portugal's market for eligible customers - this
year amounting to 20,000 customers with an annual consumption of
17,000 GWh - is to attain a significant position, using ENDESA's
technological infrastructure and SONAE's strong presence.

SODESA currently has contracts signed for the supply of 200 points
of delivery, for a total 800 GWh, and is negotiating a further 1,700
GWh.

By setting up this company ENDESA and SONAE anticipate the
creation of the Iberian electricity market, which will enable the
convergence of Spain's and Portugal's wholesale markets, making the
transactions within the peninsula more fluid.

Agreement with SONAE

The co-operation between SONAE and ENDESA started in 1999 with a
protocol that gave rise to the joint promotion of co-generation
projects in Portugal and Brazil and the supply of electricity to
companies from the SONAE Group in Portugal and Spain, and possibly in
other European countries in the short term.

Their co-operation in co-generation and renewable energies has led
SONAE to acquire 50% of Termica Portuguesa, S.A., a Portuguese
subsidiary of ENDESA.
     
Also, as a result of the agreements, since the year 2000 ENDESA
Energia supplies electricity to SONAE's factories and shopping
centres, totalling 8 points of delivery and over 250 GWh per annum.

   Short Name: International Endesa
   Category Code: MSC
   Sequence Number: 00001009
   Time of Receipt (offset from UTC): 20021021T160742+0100

    --30--kk/ny* ne/uk

    CONTACT: ENDESA

    KEYWORD: NEW YORK UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: CHEMICALS/PLASTICS ENERGY UTILITIES MERGERS/ACQ
    SOURCE: ENDESA

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