Gamesa and Iberdrola Renovables implement their strategic agreement

• For the next two years, each company will independently develop its wind farm project portfolio under the supervision of a joint Consultative Committee
• Put and call options on Gamesa’s existing portfolio assigned to the agreement in Spain and the rest of Europe will come into play as of July 2011

The agreement maximizes the companies’ wind farm portfolio value potential

Bilbao, September 23, 2009.  Gamesa Energía and Iberdrola Renovables have announced the implementation of the strategic agreement they signed in June 2008 to jointly promote, develop and operate wind farms in Europe. The amendment of the agreement’s technical terms and conditions will allow the value of both companies’ project portfolios to be maximized.
By virtue of the aforementioned agreement, Gamesa Energía and Iberdrola Renovables will develop their project portfolios autonomously, though in close collaboration, over the next two years. In order to achieve this, a joint Consultative Committee comprised of three senior executive from each company will be set up, which will be responsible for supervising execution of the agreement through June 30, 2011.
As of that date, assuming the requisite conditions are met, put and call options on Gamesa Energía’s wind energy promotions will come into play within the territory set out in the agreement. Iberdrola Renovables will acquire the business outright or opt for constitution of a joint venture (75% Iberdrola Renovables, 25% Gamesa Energía) to manage the project portfolio in the territory. In both scenarios, the Gamesa Energía employees working on those projects will be transferred to Iberdrola Renovables.

This structure maintains the essence of the strategic agreement signed in June 2008 while, at the same time, amending technical aspects that had delayed implementation and adapting the agreement to market conditions.
Additional Information

Gamesa Energía’s portfolio in the United Kingdom enters into the continental European agreement, as it has been incorporated into the European wind farm portfolio assigned to the agreement. Furthermore, both companies have agreed that Iberdrola Renovables will acquire Gamesa Energía’s projects in Mexico as per terms and conditions agreed prior to this strategic agreemen

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