IBERDROLA INGENIERÍA Y CONSTRUCCIÓN will be in charge of the engineering and construction tasks.

Vitoria - Gasteiz, Spain, 1 de September, 2005. Gamesa Eólica, working in conjunction with Iberdrola Ingeniería y Construcción (Iberinco), has signed a contract with the Mexican Federal Power Commission (CFE) for the construction of the La Venta ll Wind Farm, to be located in the Mexican state of Oaxaca. Iñaki López Gandásegui, CEO of Gamesa, Jesús Manuel Aragonés Sagredo, General Manager of Iberinco México and Eugenio Laris Alanís, Financed Investment Project Director of the Mexican CFE were all present at the signing ceremonies.

The La Venta II wind farm, located in southern Mexico, will be equipped with 98 Gamesa G52-850 kW model wind-powered generators, giving the farm a total power-generating potential of 83.3 MW.

Iberinco, Spain's largest engineering firm, will be in charge of the engineering and construction, with the goal of delivering the project in turnkey fashion. Meanwhile, Gamesa Eólica, the world's second largest manufacturer of wind-powered generators and Spanish leader in the manufacture, sales and installation of same, will supply the wind turbines. The La Venta II wind farm is set to begin operating in November of 2006.

This new contract, which is valued at over $US 111 million represents a milestone in Gamesa Eólica's expansion process into Central and North America.

In the last two years, Iberinco has signed 342 million dollars in electrical infrastructure improvement contracts in Mexico, further strengthening the outstanding position the firm had already established in that country.

The Iberdrola affiliate has won two contracts tendered by the Mexican Federal Power Commission in 2005. In July the firm was awarded the contract for reinforcing the electricity infrastructure in the states of Baja California Sur, Sonora, Durango and Tamalupinas after tendering an offer of 55 million dollars. A month later the company won the contract for the public works needed for the construction and installation of the electricity infrastructure in the states of Chihuahua and Nuevo León. This contract had a value of 67.7 million dollars.

Given that they avoid the release of pollutants into the atmosphere, the wind-powered generators that Gamesa Eólica will supply to the La Venta II wind farm will contribute to an environmentally-friendly energy supply. Specifically, this facility's annual production of 83.3 MW will replace that produced by 19,784 Equivalent Tonnes of Oil/year, avoiding the release of 124,950 tonnes of CO₂/year into the atmosphere.