The integration of IBERDROLA and ScottishPower, following completion of the recommended transaction valued at €17.1 billion that was announced in November 2006, is a milestone in the 100-year history of the Company. A world energy leader has been created, leader in renewable energy and with an enterprise value of some €70 billion.

The combined group has a total installed capacity of close to 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 35% 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, a figure 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 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 approximately 5,000 MW of IBERDROLA, an increase of 40%.

The new Group has a significantly larger consumer base, with the 5.3 million ScottishPower customers 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 has expanded significantly, creating an Atlantic energy 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.