IBERDROLA expects to at least maintain the same dividend payable from the 2010 profits as was paid in the previous year, according to an agreement entered into by its Board of Management today. 

The company's highest executive body will propose to the next ordinary General Meeting that compensation for shareholders should exceed the EURO 0.326 per share that they received for the profits made in 2009.

On the one hand, this proposal means that a gross cash dividend of EURO 0.03 per share will be distributed.  On the other hand, a new scrip dividend is also planned, similar to those offered by IBERDROLA in June and December 2010, enabling the company's shareholders to receive a minimum equivalent of a further EURO 0.15 per share.

This amount of at least EURO 0.18 per share will be added to the EURO 0.146 of the purchase price of rights in the Iberdrola Flexible Dividend scheme - equivalent to the 2010 dividend - totalling an overall compensation of EURO 0.326 per share.  

The Board of Management of IBERDROLA, which will also propose to the General Shareholders' Meeting a second scrip dividend at the end of this current year, approved the Group's accounts for 2010 today. These accounts will be presented when the markets open next Thursday, 24 February.

A successful formula

68.22% of IBERDROLA's shareholders opted to receive Group shares at no cost and with no withholding tax as part of the compensation scheme known as Iberdrola Dividendo Flexible (Iberdrola Flexible Dividend), implemented for the second time on the occasion of the payment of the dividend corresponding to the financial year 2010.   

Not only has the company once again successfully concluded this scheme, which is a ground-breaking initiative in the Spanish business sector; it has exceeded the positive results obtained in the first edition.    In fact, the acceptance rate recorded is higher than that of the month of June 2010, when 64.12% of IBERDROLA's shareholders decided to receive the traditional interim payment of the dividend for 2009 in the form of shares.

Ever since it was founded over 110 years ago, Iberdrola has been committed to paying adequate attention to investors and to the broader financial community. The IBERDROLA Group has  undergone a profound transformation in the past decade that has converted it into the leading energy group in Spain, world leader in wind power and one of the top five global electricity groups in terms of market capitalization.

IMPORTANT INFORMATION

This communication does not constitute an offer of sale in the United States of America or in any other jurisdiction. The shares referred to herein may not be sold in the United States of America, except except pursuant to an effective registration statement under the 1993 Securities Act or pursuant to a valid exemption from registration.