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11.02.2005

Befesa signs Zinc and Lead Recycling Agreements with the Basque Country´s main Steelworks

Madrid, October 2th, 2005. - Befesa Medio Ambiente, the parent company of Abengoa’s Environmental Services Business Unit, has signed framework steel powder treatment and valorization contracts with almost all the steelworks in the Basque Country and its area of influence. This ensures Befesa will receive the tonnage required for its Asua-Erandio facilities. The contracts extend to December 31, 2016 and their overall value is in excess of 90 million euro.

The contracts are a renewal of previously established agreements and are part of the CAPV (2003 – 2006) Hazardous Waste Management Plan, the aim of which is for all the powder trapped in the filters to be recycled with zinc recovery. By the year 2007, the percentage of recycled zinc must be 100 per cent. For this to be achieved, the subsidiary principle will be adopted to allow private enterprise to promote recycling and valorization by constructing and modernizing the industrial infrastructures at their facilities.

According to Befesa’s chairman, Mr. Javier Molina, the signing of these contracts "ensures the tonnage required for the facilities in Asua-Erandio up to 2016 and, at the same time, strengthens Befesa Zinc Aser’s position as Spain’s sole steel powder recycling plant for the recovery of Zinc and Lead".

The Modernization and Environmental Improvement Project Befesa Zinc Aser has been executing since 2001 will culminate with the installation of a new sleeve filter to improve the gas cleaning system in December 2005 and the replacement of the existing kiln with a more modern and robust one that will be operating in September 2006.

This project is included in the Voluntary Agreements Befesa has signed with the Basque government in preparation for the coming into force of the Integrated Pollution Prevention and Control Act 16/2002 (IPPC).

Befesa, Abengoa’s Environmental Services subsidiary, focuses on providing environmental services for industry and on the construction of environmental infrastructures. It is a listed company and closed 2004 with a treasury stock of more than 393 million euro. In 2004, Befesa managed a total of 1,374,000 tons of industrial wastes, a twelve percent increase on the previous year (www.befesa.es)

Abengoa, a listed industrial and technology company with treasury stock of more than 1,200 million euro, provides solutions for Sustainable Development, the Information and Knowledge Society, and the Creation of Infrastructures. It currently operates in four large activity sectors: Bioenergy, where it is the world’s no. 2 bioethanol producer; Environmental Services, where it is European leader in segments of the industrial wastes market; Information Technologies, where it is one of the main role players at international level, with operations in Europe, the Americas, and Asia; and Industrial Engineering and Construction, where it is leader in Spain and Latin America. (www.abengoa.com)