ENDESA Signs a 7-Year, 360 Million Euro IT Services Agreement With IBM

ENDESA Unifies the Management of Its IT Infrastructure in Spain and Latin America

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ARMONK, NY - 29 Jan 2009: ENDESA and IBM (NYSE: IBM) today announced the signature of a seven-year 360 million Euro agreement for IBM to manage all the infrastructure and information technology (IT) solutions that ENDESA uses in Spain and Latin America. The agreement will allow Endesa an estimated cost saving of 20%.

ENDESA will leverage IBM's global leadership in technology innovation to be able to get the following benefits: implement a unified global IT model for all the countries to help capitalize on its global scale to enhance efficiency, reduce costs and intensify its investments in core IT initiatives; create an IT platform prepared to immediately support their worldwide growth strategy; reduce the energy consumption of its IT platform in Latin America by around 50% (this could mean 1.290 CO2 Tons); and increase its security levels.

The agreement covers the implementation of a global unified IT model where users will have access to services provided both locally and from globally specialized centers. IBM will also manage ENDESA's central IT platform along with all the IT resources that 30,000 ENDESA's staff use for their daily operations. In addition, IBM will provide back up and recovery services in case of emergency to avoid data loss or business interruption. IBM will also manage the control systems for the operations of ENDESA's energy generation, distribution and market network.

This agreement, signed in December 2008, expands the previous 7 year transaction closed in 2003 for IBM to manage ENDESA's IT infrastructure in Spain.

About ENDESA
For more information, visit www.endesa.es/

About IBM
For more information, visit www.ibm.com/services.

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